CryptoLogic may be for sale
In what could wind up being a pretty big impetus to the online gambling world’s recent merger and consolidation drive, branded software game developer CryptoLogic has announced that it may be for sale.
The Canadian-based company has said it’s “initiated a strategic review of its business that includes the possibility of an offer being made for the company or a disposal of part of the business,” reports Reuters.
The company also said it had hired financial advisement from Deloitte Corporate Finance as to help it in this current operational review.
A leading developer of online casino software and branded online games, CryptoLogic had just recently announced its “disappointing” financial performance for 2010.
In its report of 2010, released just this week, CryptoLogic announced that it had reduced total expenses by 39 percent to $47.5 million, but that total revenue had dropped from $39.8 million in 2009 to $26.0 million last year. It also reported a net loss of $20.4 million.
The company continues to sign lucrative branding and licensing deals; as of year-end 2010, it had 170 branded games live.
“While the additional restructuring measures taken since August 2010 have significantly reduced the total recurring cost base and cash outflow, improving revenue performance remains a key management priority,” company reps announced in the statement. “In addition, the Board continues actively to examine strategic options both to strengthen the Company’s operations and deliver shareholder value.”
“The Company’s workforce was reduced by 47% to 111 in 2010 from 211 in 2009 through a major streamlining of the Company’s offices in all locations and the consolidation in Malta of the Cyprus operations and a majority of the UK operations,” the release continued.
“As a result, the recurring cost base has been decreased by 49% to $6.6 million per quarter, when compared with Q2 2010, the last full quarter prior to the recent restructuring.”