CryptoLogic Limited (NASDAQ:CRYP) Climbs On High Volume

CryptoLogic Limited (USA) (NASDAQ:CRYP), the biggest percentage gainer spiked up by 27.20% in its last trading session and closed at $27.20 with an unusual volume of 2.51 million.

Shares of a developer of branded online betting games and Internet casino software traded in the range of $1.24 - $1.96 in its last trading session with 52 week range of $1.06 - $4.69. In the past 1 month trading sessions, the stock went up by 25.2% after the company announced its third quarter financial results. At the current market price, the market capitalization of the company stands at $20.46 million.

Last Month, the company posted its fiscal third quarter net loss of $3.7 million down from net loss of $12.7 million in the second quarter. Total Revenue during the quarter decreased quarter over quarter to $6.1 million from $6.7 million. Hosted Casino revenue launched by Betsafe.com, a leading online gaming operator, during the quarter decreased quarter over quarter to $5.6 million from $5.80 million. Revenues from Branded Games segment decreased to $1.4 million from $1.5 million quarter over quarter. Poker & other Revenue decreased to $0.5 million from $0.6 million. This decline in revenue was due to lower contribution from a key license in branded games. The Company continues to work closely with its licensees to help them maximize revenue from its portfolio of branded gaming content.

The Company also implemented an update on its expanded restructuring programme announced on August 12, 2010. During the quarter, the company has taken several measures to reduce the costs which will also impact the result of the coming quarters. Total expenses decreased quarter over quarter to $9.9 million from $20.2 million. The second quarter expenses include $7.3 million of non-recurring charges. Operating expenses went down by 20% quarter over quarter to $7.6 million. As part of the restructuring initiatives, a new operational management team to lead the hosted casino business was brought in to stabilize and reinvigorate the revenue base.

Reflecting the cash impact of one-time restructuring costs of $3.5 million, Net cash of $12.3 million has been recorded at the end of the quarter compared to net cash of $17.4 million in the second quarter, 2010.

During the quarter the consolidation of the Cyprus operations and most of the London operations into Malta was substantially completed.

CryptoLogic Limited, together with its subsidiaries, develops and provides online gaming software to the Internet gaming market principally in the United Kingdom and Continental Europe.