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CHARTWELL LOSSES DOUBLE IN LATEST RESULTS

Saturday June 18 2011 : But CFO still confident on companies return to profitability
 
Canadian online gambling provider Chartwell Technology Inc announced unimpressive results for the three months ended April 30, 2011 this week.
 
The company doubled its losses compared to the same period in 2010 and total revenue fell by 24.5 percent.
 
Key Performance Indicators for the three month period ending 30 April 2011 include:
 
-  Total revenue $2.4 million (Q2/2010: $3.1 million), a decrease of 24.5 percent - of which the company says can be attributed to the non-renewal of the licence agreement with Betfair late 2010.
 
-  EBITDA  decreased to a loss of $1.6 million (Q2/2010: loss of $777 000)
 
-  Net loss increased to $1.8 million (Q2/2010: $886 000), attributed to a decrease in revenue
 
-  The severance of 20 percent of the company staff in a cost cutting endeavour and the departure of the company's chief executive officer, Dan Phillips
 
Business highlights for the second quarter of 2011:
 
- The launch of its Rapid Game Deployment architecture (RGD);
 
- Live Dealer offering in partnership with HoGaming;
 
- Deployment of Serengeti Diamonds™ using the RGD.
 
Alan Richter, CFO of Chartwell commented:
 
“Chartwell is gradually replacing revenue lost late in the previous year and is doing so through an invigorated and concentrated Casino software suite. Combined with significant cost reductions, new licensees pending launch and our existing sales pipeline, we are well on our way to returning to profitability.
 
"As we move closer to our planned merger with Amaya (see previous InfoPowa reports), which is due to close in July, we are excited about the potential synergies of the business combination for our shareholders. There will be a good revenue mix between land based and online business for the combined entity moving forward.

"Our games and platform will be instrumental in rolling out the many exclusive government licensed businesses that Amaya has secured to date. This B2G business nicely compliments our ongoing B2B business and diversifies our future revenue streams and growth prospects."



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