CryptoLogic CEO Resigns

August 16, 2010 | News Category: Casino Software

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The announcement that Brian Hadfield, the Chief Executive Officer of CryptoLogic, has resigned, was released at the same time that the company released it’s second quarter financial results.

CryptoLogic, which is well respected as an online gambling software developer, and has historically been a very successful company, has again released another disappointing financial report for the second quarter of 2010.

The release of the financial figures also contained the following note: "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."

The company released information regarding the restructuring that they plan to undergo, and one can only hope that this will help to improve their financial situation in the near future.

The point of restructuring is to do what they can to lower their cost base. There is also a plan to reduce the size of CryptoLogic’s workforce by the fourth quarter of 2010, as well as a number of other measures, which were suggested to the company by external consultants.

The statement to the shareholders reads: "Q2 2010 results were disappointing as slow progress was made amid continued challenging trading conditions to turn round the Company's performance."

The company received a net loss of $12.7 million in the second quarter.

The board of CryptoLogic will still "…continues to pursue avenues to enhance the company’s strategy in the interests of stakeholders." One example of this is the Instant Click system that began on 30th June. There are already three clients that are using the Instant Click system, namely Tain AB, Nyx Interactive, and SkillonNet. The Instant Click system is being used to get products to market quicker, in order to shorten the time that it would have taken to implement new games on customers networks in the past.

The World Cup certainly had a negative affected on the income of CryptoLogic, as it did on many online casino software operations. The popular branded casino games have continued to bring in income, as more of the games were offered to the playing public. Revenue from fully hosted online casino sites also experienced growth, since the multi-year deal with Betsafe was entered into.

The company now offers 150 branded games, 51 of which were released during the second quarter of 2010. There are expected to be a total of another 41 branded games that will be available for release in 2010.

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