Cryptologic CEO Steps Down - 08-14-10

August 14 - Cryptologic software developer this week posted a record loss of $12.7 million in the second quarter of 2010, leading to the Chief Executive Officer of the group, Brian Hadfield announcing his resignation.

Hadfield will be replaced by the group's chairman, David Gavagan until a permanent CEO can be found.

The first quarter of 2010 saw Cryptologic lose $3.2 million.

In the second quarter, revenue from branded games increased from $1.3 million to $1.5 million, however in other areas, record losses were shown.

Poker and other revenues dropped from $1.3 million to $700K.

Despite efforts to keep operating costs down, Cryptologic reported that these had risen from $11 million in the first quarter to $12.9 million in the second.

A statement by Cryptologic was published in egr: "In the 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."

Since 2006, Cryptologic has been struggling to retain a strong market position, despite the introduction of the UIGEA.

However, continued losses and the recession have taken its toll, leading to Hadfield announcing his retirement.

Analysts believe that layoffs are on the line for Cryptologic employees if numbers do not improve.

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