CryptoLogic Limited announced Monday that its chief technology officer, Michael Starzynski, has left his position with the company. The move comes as part of CryptoLogic’s effort to restructure its business to return to profitability.
The company is focusing on earning revenue from its internet casino and branded gaming business, while reducing annual operating costs by $13 million. Part of the reorganization involves eliminating the costs of a standalone poker network and reducing its servers by 75%.
As a result the Chief Technology Officer’s role will not be replaced and will likely be phased out. CryptoLogic will split operations and development functions among other managers. Starzynski was appointed Chief Technology Officer of the CryptoLogic on March 17, 2003.
“All members of the CryptoLogic team join me in thanking Mike for his service over the last five years and wishing him well as he embarks on new challenges,” said Brian Hadfield, CryptoLogic’s president and CEO.
CryptoLogic stated in January that it expects net profits to be in the range of $9-$10 million for 2009, with earnings per share to be in the range of $0.65-$0.71. All signs have the company headed in the right direction with its concentrated focus on cutting operating costs along with its recent partnership with Gaming Technology Solutions PLC, a global supplier of platform solutions for online gaming operations.
The partnership is consistent with CryptoLogic’s strategy to expand the number of market leading casino sites that offer the company’s games. GTS’s notable list of customers includes Unibet, bwin, 888, Expekt, and Betclick, as well as many other top brands.
The prospects for the company received an even bigger boost this month when Barney Frank, a
leading member of the Democratic Party, expressed his intention to reintroduce legislation designed to counter the effects of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). With the new administration in favor of limiting restrictions on the internet, the chances of the bill passing are good.
CryptoLogic left the United States market the day the UIGEA was passed but would likely be in good position should the US market re-open. Companies that didn’t refuse to comply with the UIGEA pressure in 2006 would almost certainly have favored status with the US government. That, along with CryptoLogic’s dedication to its top-tier gaming affairs, should give investors a reason for optimism in the fiscal year.