restructuring program has been set in motion that will see the company reduce total operating costs of approximately us$ 13 million on an annualized basis by the end of the second quarter of 2009. However, that move will result in us$ 3.5 million cash costs and up to us$ 20 million in further non-cash charges.
As part of the restructuring it said it would outsource its poker network through a strategic partnership with Gtech Corporation and carry out significant cutbacks in servers and office rental costs.
In its place, CryptoLogic is now aiming to drive growth through its internet business and by developing and licensing branded online games to gaming and entertainment brands.
On this basis, and with no significant further deterioration in economic conditions, the company is eyeing a return to profitability and cash generation from the second quarter.
Brian Hadfield, CryptoLogic’s president and CEO, described the steps as “radical” and said the company would now focus on its core strengths as a developer of exciting online gaming content.