In a trading update for the third quarter issued by software developer and licenser CryptoLogic on Monday morning, the company announced that it expected to see an operating loss for the third quarter of $1.0 to $1.5 million. The company also stated that it expects to take a foreign exchange loss of $3.6 million due to appreciation of the U.S. dollar against the U.K. sterling.
Brian Hadfield, CryptoLogic’s President and CEO, commented in CryptoLogic’s Monday news release,
“While it is disappointing that financial market volatility will affect our third-quarter results, CryptoLogic has made good progress operationally with the launch of new products, improvements to our technology platform, and seven new customer wins so far this year. With three new customer sites up and running in the third quarter – and two more slated to go ‘live’ in the fourth – CryptoLogic continues to see a brighter outlook for 2009.”
The U.S. dollar has been on a steady increase in recent weeks after bottoming out against major international currencies.
In response to the appreciation of the U.S. dollar, CryptoLogic has since moved “substantially all of its cash and marketable securities into U.S. dollars.” The company was founded back in 1995 and became publicly traded in the Canadian Dealer Network one year later. At the same time, it launched InterCasino, which was one of the first real money casinos available. The company noted that it experienced a delay in moving its cash into U.S. dollars, which was part of the reason for the $3.6 million foreign exchange loss.
CryptoLogic signed William Hill in 1999 and Littlewoods Gaming two years later. The company launched its wildly popular poker product in 2002. Its poker offering would later become one of the world’s top 10 based on revenue. On the NASDAQ Stock Exchange in the United States, shares of CryptoLogic, which are traded under the symbol CRYP, were down 3.32% in early morning trading. Shares are currently going for $6.70, which is near the bottom end of its 52 week range of $5.45 to $21.97.
The company has 12,840,000 shares outstanding and a market cap of $86,028,000 on the NASDAQ. Shares of CryptoLogic first traded on that stock exchange in 2000.
At this week’s European i-Gaming Congress and Expo in Barcelona, Hadfield will speak on a software suppliers panel. CryptoLogic’s existing customers include 888 and Skybet and the company expects to launch a new website during the Congress and Expo, which takes place from September 23-25. Hadfield commented on his appearance: “I promised early on that CryptoLogic would be more aggressive than ever before, and doing so means being more visible, more available – and offering valuable insight on issues that affect our industry.”
CryptoLogic is one of the pioneers in developing casino games. Its current offering includes Casinomeister, King Kong, DrMBrace, European Blackjack, Picnic Panic, and Little Master. Non-downloadable games include some of the most recognizable mainstream names such as Blade, Daredevil, Silver Surfer, X-Men, Thor, the Incredible Hulk, and the Punisher.
