Second Quarter Loss For Cryptologic
Published: Saturday, August 11, 2007 Online-Casinos.com
SECOND QUARTER LOSS FOR CRYPTOLOGIC
Drop in revenues exacerbated by costs of move to Dublin
CryptoLogic, the publicly-listed gaming software developer and turnkey provider whose partners include World Poker Tour, William Hill, Sun Poker, InterPoker and Playboy, has reported a 46.5 percent decrease in revenues in the second quarter of 2007.
The Dublin-based company suffered a second quarter loss of US$ 2.6 million, and said the after-tax loss was due principally to the US$ 4 million in reorganisation costs related to establishing a new corporate headquarters in Ireland. The company has accelerated and completed its reorganisation, moving up certain costs to realise the benefits earlier. As a result, reorganisation costs for the quarter were $2.5 million higher than planned previously. The overall cost of the reorganisation will be US$0.9 million higher than the forecast US$ 8.5 million, which Cryptologic says is due to a non-cash option expense related to the hiring of the new chief executive, Javaid Aziz.
During the second quarter, the company generated revenue of $16.2 million and said the decrease from $30.2 million in the second quarter of 2006 was “due largely to the impact of the U.S. prohibition of Internet gaming.”
It nevertheless remained upbeat about its outlook. “CryptoLogic took major steps this quarter towards a return to growth and profitability - with an increase in operating revenue, and a decrease in operating costs," said Javaid Aziz, CryptoLogic's President and CEO.
"Since December, CryptoLogic has launched 11 new customer sites, and we have four more in the pipeline - including two for Holland Casino, and one for World Poker Tour. With the confidence of huge global brands, good growth from our European base and encouraging progress in Asia, CryptoLogic's outlook improves every day."
The company reported its financial strength continued to be reflected in its balance sheet - at 30 June, 2007, net cash was $91.7 million. This reduction from $103.8 million in Q1 is the result of two large payouts totaling $12.1 million from the company's popular and profitable cumulative jackpot games.
