|Leading gaming software producer CryptoLogic announced a fall in its fourth-quarter profit, dropping by a hefty 70.6 per cent to $1.7 million, in its first financial report since the introduction of U.S. Unlawful Internet Gambling Enforcement Act October 13, 2006. |
For the period ending December 31, the company's earnings were equivalent to 12 cents per diluted share, down from $5.8 million or 43 cents per share, in the same period last year. The quarter figures may have been negatively impacted by $1 million in reorganization costs for the relocation of the company’s headquarters to Ireland.
However, all is not lost for the company as it also recorded annual profit of $24.8 million and revenues of $104 million.
And while CryptoLogic admitted that the short-term effect on revenue and earnings was 'heightened' by the UIGEA law, the fourth quarter had still proved to be its strongest of the year.
While 2006 was a challenging year for the industry, it was another record year for CryptoLogic. Lewis Rose, CryptoLogic's president and CEO, said, “We enter 2007 with both focus and momentum. 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.”