CryptoLogic earnings fall to us$ 1.7 million in first report

For the ended December 31, the company’s earnings were equivalent to 12 cents per diluted share, down from us$ 5.8 million in the same period last year. The quarter was impacted by us$ 1 million in reorganization costs for the shift of its headquarters to Ireland.

Revenue was us$ 19 million, down from us$ 25.1 million in the comparable period. However, CryptoLogic posted a record annual profit of us$ 24.8 million and revenues of us$ 104 million. The results come after the US government passed the Unlawful Internet Gambling Enforcement Act into law on Oct. 13, effectively banning online gambling in the US.

CryptoLogic said the short-term impact on revenue and earnings was "heightened" by the new law, adding that the fourth quarter is consider its strongest of the year. But the company added that since its major focus was on Europe, even before laws changed, the impact was "less serious" than for some competitors.

"While 2006 was a challenging year for the industry, it was another record year for CryptoLogic - and we enter 2007 with both focus and momentum," said Lewis Rose, CryptoLogic’s president and CEO.

"We’ve launched five new customer sites since December, and have three more in the queue - including two for Holland Casino, CryptoLogic’s first government-owned customer."