Cryptologic reports poor second quarter results

Cryptologic reported a total drop in revenue from $10.14 million in the second quarter of 2009 to $6.74 million in the same period of 2010.

While they reported an increase in revenue from branded games from $1.3 million to $1.5 million, revenue from poker and other sources dropped from $1.3 million to $700,000.

Besides for the drop in revenue, Cryptologic reported that administrative, amortization, operating and other general costs had risen from $11 million to $12.9 million in the first quarter of 2010.

In light of the company’s poor financial performance, a spokesperson for Cryptologic released the following statement: “In light of continuing difficult trading conditions, a further restructuring is being implemented to reduce significantly the cost base including a reduction in the total workforce by the end of Q4 2010. Following a review by a leading firm of industry consultants announced previously, a number of measures are being implemented to improve the performance of the hosted casino business.”

Cryptologic reports poor second quarter resultsOn Thursday, Cryptologic announced that Bryan Hadfield, CEO of the company stepped down. Hadfield became director of Cryptologic in 2007 and took over from President and CEO, Javaid Aziz, in 2008. Since that time, Cryptologic has undergone constant restructuring and has suffered sustained losses.

As part of the current restructuring, Huw Spiers will take up the position of Chief Financial Officer at Cryptologic, starting from August 15. Spiers stated that he is “delighted to join Cryptologic, an exciting company with excellent long term prospects. It has a proven internet-based business model, a blue chip customer base and great products aimed at a global market destined for long term growth.”