IRISH-BASED gambling and gaming software developer CryptoLogic expects profits this year to reach between $9 million (€6.85 million) and $10 million on the back of a cost-cutting programme.
The group expects 2008 revenues to be down 14 per cent, largely as a result of currency fluctuations.
CryptoLogic said yesterday it hoped to cut about $13 million in costs through contracting out its poker network to GTech Corporation. It said it hoped this process would be completed by the end of the first quarter this year.
It expects to return to profitability in the second quarter and to generate between $11 million and $13 million in cash this year. The restructuring plan will result in $3.5 million in cash costs and up to $20 million in non-cash charges.
The savings will stem from the fact that the move will cut the need for servers by 75 per cent and reduce office rental costs.
CryptoLogic predicted yesterday that it would produce net profits of $9 million to $10 million in 2009 and deliver earnings per share of 65 cents to 71 cents.
CryptoLogic chief executive Brian Hadfield said yesterday that it had decided to contract out its poker business because it wanted to concentrate on casino games development, its strongest area.
It will focus on driving growth through its internet casino business, and by developing and licensing branded online games.
