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FIRST QUARTER 2010 RESULTS RELEASED BY CHARTWELL TECH

3/18/10 - The Calgary, Canada-based online gambling software developer Chartwell Technology has released its financial results for Q1 2010, a period ending January 31, 2010.
 
Revenue dropped to $3.5 million compared to $4.2 million for the same period a year earlier, generating a net loss for Q1 of $800 000 compared to a net loss of $100 000 from continuing operations and $700 000 after discontinued operations in the same quarter of the last fiscal year. 
 
Cash flow from operations before working capital adjustments similarly declined from $600 000 to cash used in operations of $400 000.
 
Q1 software development and support expenses increased 13.2 percent to $2.4 million over the same period of fiscal 2009. 
 
Sales and marketing expenses were cut from $600 000 to $500 000, while general and administrative expenses dropped to $900 000 from $1 million.
 
“While the year-over-year comparison displays a decrease in revenue, it does not illustrate the benefits of the strategic shift of focus to the company’s core casino product, platform and systems”, said Alan Richter, CFO. 
 
“Revenues remained constant compared to the fourth quarter of 2009 while the company is currently engaged in the release of its largest and most diverse set of games and features throughout the balance of 2010”.
 
The first quarter of 2010 brought the first deployment of the Chartwell Gaming Platform with Betaland, a Gaming VC Holdings SA subsidiary. 
The CGP offers a gaming platform designed for efficient implementation of both internally developed and third-party games, giving clients access to the widest and most current gaming titles, essential for continued brand growth.
 
“The decision to focus on our casino product, platform and core systems has been well received by both clients and prospects” adds Richter.
 
The company continued to maintain a strong balance sheet.  At January 31, 2010 Chartwell Tech had $17.4 million of cash and short-term investments and working capital of $21.2 million.



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