Cryptologic 2Q 2K10 Numbers Down CEO Hadfield Resigns

Published Thursday, August 12, 2010 -

Cryptologic, one of the online gambling industry's most respected and successful software developers, has released it's second quarter financial figures with some disappointment expressed from management.
Along with the less than stellar numbers an announcement that the company's Chief Executive Officer Brian Hadfield will step down and resign his position. The company statement read, "After working with the Board on the restructuring plan, Brian Hadfield, Chief Executive Officer, has decided to leave the Company and resign as a Director. David Gavagan, the Chairman, assumes the role of CEO on an interim basis."
Crytologic moved it's headquarters from Canada to Ireland not that long ago and embarked on a severe restructuring of it's operations. Measures include determined efforts to lower the operational expenditures by reducing it's workforce and other cost cutting measures recommended by consultants. In an effort to maintain confidence in the corporation a statement to the shareholders read, "the outlook remains challenging, and the Board continues to pursue avenues to enhance the company's strategy in the interests of stakeholders." Continuing it read,  "Q2 2010 results were disappointing as slow progress was made amid continued challenging trading conditions to turn round the Company's performance," The report went on to explain why the number did not meet expectations and that a few of its licensees witnessed a decline in contribution from higher margin slot games with some negative impact occurring during the World Cup. Excluding the impact of the change in accounting estimates for prepaid royalties, revenues from both the hosted casino and branded games licensing business were up.
On the positive side 51 new branded games were launched in the second quarter, making the total number of games rolled out by licensees and generating revenues to date to 150, with a further backlog of approximately 41 games expected to go live by the end of the year. Looking ahead to the third quarter three clients have been signed up for CryptoLogic's new casino offering, Instant Click. This new product is aimed at expanding the Company's market and streamlining the process required to make these new games work on licensee's networks.





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