CryptoLogic Partners with Orbis Technology

Tuesday December 16, 2008

Gaming software leader CryptoLogic announced Monday that it will partner up with Orbis Technology Limited, an industry leader in the provision of interactive gaming and betting solutions.

The collaboration will provide CryptoLogic with another means to allocate and expand the number of operators that offer the company's casino games. CryptoLogic anticipates a launch of numerous games for Sky Bet through Orbis Fixed Odds Games platform, which offers over fifty graphically rich, non-download Flash games, including Slots, Keno, Scratch Cards, Balls and Hi-Lo. Orbis impressive customer list includes Sky Bet, Betfair Sportsbook, Paddy Power Sportsbook, Blue Square Sportsbook, and many others.

"The global internet gaming market continues to grow rapidly, and that is why CryptoLogic's strategy includes opening up new channels to market through the world's leading operators," said Brian Hadfield, CryptoLogic's President and CEO. "CryptoLogic's new partnership with Orbis Technology enhances both our position and our optimism as we revitalize our business for growth in 2009 and beyond."

Orbis OpenBetTM software platform features a unique 'one account, one wallet' solution that allows operators to let their customers bet and play in multiple languages and currencies, across multiple products and platforms. Players can access the web, mobile devices, retail outlets, call centers and interactive digital television, all with a single log-in.

"Orbis is committed to offering its customers the greatest games and the most sophisticated solutions - and partnering with CryptoLogic strengthens our offering even more," said David Loveday, Orbis' CEO. "By working together, Orbis and CryptoLogic will provide a very attractive package to the world's most recognized gaming operators."

CryptoLogic last month announced its financial results for the three months ending September 30, 2008. The company posted a net loss of $5.9 million, including a foreign exchange of $4.2 million. As a result, CryptoLogic slashed its quarterly dividend to $0.03 a share, reduced by 75%. The company had previously paid a dividend of $0.12 per share.

The company posted revenue of $14.0 million in its latest financial statement, a decrease of 16.4% from the second quarter of 2008 and 19.7% when compared with the same period in 2007. Operating expenses for the quarter that ended September 30, 2008 were $16.5 million, or 117.5% of revenue. Operating expenses increased primarily due to a $4.2 million loss on foreign exchange recorded during the quarter as the U.S. dollar appreciated by approximately 10% against both the GBP and the Euro.

However, the company's internet casino is by far its most profitable business and the company anticipates considerable revenue growth from the division next year. CryptoLogic has signed a multitude of new customers in 2008 and distribution partners, including some of the biggest names in gaming as well as promising, up-and-coming brands.

With more than 200 games, CryptoLogic has one of the most comprehensive casino suites on the Internet today. CryptoLogic has earned rave reviews from industry peers and players alike, and in 2008 earned Gambling Online Magazine's Top Casino Software award for the third consecutive year.