CryptoLogic sees weak Q2, shares plunge - 15th July 2010

Internet gaming company CryptoLogic Ltd said it expects second-quarter operating loss to be sequentially wider and outlook for the year to be "much less encouraging" than when it reported its first-quarter results, sending its shares down 25 percent to a 14-year low.

The company, which makes Internet casino and branded gaming software, also said the full suite of casino games due for launch in the quarter at one of its e-gaming operators was delayed until July.

Second-quarter revenue is likely to show a slight sequential decline, the company said in a statement. In the first quarter, the company reported revenue of $7.6 million, but had said it expected sales to improve gradually.

CryptoLogic, which reported a first-quarter operating loss of $2.4 million, forecast total costs to be higher-than-expected in the second quarter.

"Despite the World Cup, casino revenue showed a modest gain quarter on quarter but was lower than anticipated due to a substantial swing in player preferences for blackjack and roulette," the company said in a statement.

CryptoLogic licenses its games to e-gaming operators such as PartyGaming, Gala Coral and Betfair.

Shares of the Dublin, Ireland-based company were down 47 Canadian cents at C$1.80 Thursday morning on the Toronto Stock Exchange. They touched a low of C$1.70 earlier in the session.

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