CryptoLogic Discusses its OptionsPublished March 30, 2011 by OCR Editor
CryptoLogic considers strategic options and offers.
It's official: CryptoLogic, the pioneer in online casino gaming software, has made an official request to auditing firm Deloitte. And the terms of the request include conducting an intensive review of CryptoLogic's business enterprise to see whether the company or a part thereof should be sold off.
Deloitte is the world's premier financial advisory authority and its reviews carry tremendous weight. CryptoLogic has been undergoing some financial difficulties during latter times and it is keen to either sell off problematic business divisions or perhaps put the company on the market in its entirety.
Some of the recent developments at CryptoLogic:
- In 2010 CEO Brian Hadfield resigned owing to eight-figure net losses
- Extensive cost-cutting has been undertaken by reducing the work force by 50%
The good news is that these cost-cutting measures resulted in reduced losses ($20.4 million for 2010 as opposed to $35.5 million for 2009). And the quarterly losses are substantially reduced under these new financial reforms. This all smacks of a recovery within CryptoLogic's ranks and yet the strategic review is already underway. Shareholders will be apprised of these details as they become available.
News coming out of CryptoLogic's stable is not an isolated event. Key industry players in Wizard Gaming also went on sale in 2010. This could all work together to create a strong and centralized software gaming powerhouse - either Playtech or Microgaming.