Leading remote gaming software provider Chartwell Technology Incorporated has released its financial results for the third quarter of 2009 showing a 37 percent year-on-year drop in revenues to $3.55 million.
The Calgary-based firm blamed foreign exchange losses for the decrease along with the expiry of two single-term software licenses and a weakened economy in its key markets.
Total expenses before income tax for the three-month period were $4.77 million compared to $4.96 million for the third quarter of 2008 with Chartwell revealing that foreign exchange losses as a result of a strengthening Canadian dollar were offset by lower software development and support costs.
Net losses for the third quarter of 2009 were $842,846 as compared to net income of $561,897 for the same period last year. In addition, earnings before interest, tax, depreciation and amortisation declined from $1.21 million in the third quarter of 2008 to $655,559 for the most recent period.
Chartwell stated that cashflow from operations before working capital adjustments declined from $842,862 in the comparative period of last year to cash used in operations of $561,908 for the third quarter of 2009.
During the quarter, software development and support expenses totalled $2.62 million compared to $2.81 million for the same period of 2008. It stated that a shift in resources was necessary in order to facilitate the accelerated development of its casino product and gaming platform, which included licensing applications and software certification in Alderney, while the firm continued to reduce costs associated with its poker product.
Finally, Chartwell revealed that sales and marketing expenses totalled $561,861 for the third quarters of both 2009 and 2008.
“The seasonally slow third quarter was compounded by overall economic weakness,” said Alan Richter, Chief Financial Officer for Chartwell.
“Through this period, however, we have demonstrated our commitment to future growth by expanding our base of licensees, aggressively developing new content internally and broadening our service and product portfolio through the imminent launch of the Chartwell Gaming Platform.
”This state-of-the-art gaming platform will host our proprietary and third-party content, will be most cost efficient to Chartwell and will provide seamless integration to our customer base moving forward.
“The majority of our new client signings did not launch during the quarter and accordingly did not contribute to revenues in our third quarter. We expect these new clients to be deployed in the current quarter. While we manage our business through this difficult economic environment, we will continue to carefully manage expenses without compromising customer satisfaction and company growth.'
