TORONTO — Gaming software producer CryptoLogic Inc. said Thursday its fourth-quarter profit dropped 70.6 per cent to $1.7-million (U.S.) in its first report reflecting financial performance since the U.S. government declared a ban on online gambling. The quarter was hit by $1-million in reorganization costs for the shift of its headquarters to Ireland.
However, CryptoLogic posted a record annual profit of $24.8-million and revenues of $104-million.

CryptoLogic said the short-term impact on revenue and earnings was “heightened” by the new law, adding that the fourth quarter is consider its strongest of the year. But the company added that since its major focus was on Europe, even before laws changed, the impact was “less serious” than for some competitors.

“While 2006 was a challenging year for the industry, it was another record year for CryptoLogic — and we enter 2007 with both focus and momentum,” said Lewis Rose, CryptoLogic’s president and CEO. “We’ve launched five new customer sites since December, and have three more in the queue — including two for Holland Casino, CryptoLogic’s first government-owned customer.” (canadian press)