Cryptologic Inc. Q1 2010 Earnings Call Transcript

Cryptologic Inc. (CRYP)

Q1 2010 Earnings Call

May 7, 2010 8:30 am ET

Executives

Brian Hadfield – President, Chief Executive Officer

Stephan Taylor – Chief Financial Officer

Analysts

Brian Kinstlinger – Sidoti & Company

[Gary Devorchuck – Channel Island Partners]

[Marc LeDuc – Private Investor]

Presentation

Operator

Welcome to the 2010 first quarter financial results conference call. I would now like to turn the meeting over to Mr. Brian Hadfield.

Brian Hadfield

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Welcome to Cryptologic’s conference call for the first quarter of 2010. I’m Brian Hadfield, President and CEO of Cryptologic. With me here in Dublin is Steve Taylor, our Chief Financial Officer.

Q1 was a difficult quarter for Cryptologic as the benefits of our operational progress have taken longer than we had hoped to bear fruit and ultimately translate into revenues. Despite a strong January, first quarter revenues were impacted by sluggish wagering activity across our licensee base and an unanticipated decline from a key customer transition last year.

In addition, a six-week delay in software implementation of Inter Casino hampered the full launch of a new branding and streamlined registration process, thereby pushing back the start of a major new marketing and advertising campaign. That said, Q2 has started well with revenues to date, and to the same period in the previous quarter.

The hosted casino business continues to be the focus of aggressive management action and we expect its performance to improve. The operational team in this segment has also been strengthened. We’ve delivered all new virtual casino lobby which together with the re-branding and re-launch by Inter Casino and back to a major advertising and marketing campaign, represents the first such major investments in many years aimed at driving long term growth.