Chartwell suffers over $1 million loss in quarter 4

Chartwell Technology Inc, the online gaming systems provider has confirmed it suffered a significant drop in revenue in quarter four of 2010. The Canadian based company has blamed the quarter’s poor performance on the strength of the Canadian dollar.

Year on year figures show that quarterly revenue fell by $1.1 million from $3.5 million to $2.4 million, and total revenue for the fiscal year fell an astonishing 23%.

"The largest factor in the decline in revenue is the decline in the value of the euro and the British pound against the Canadian dollar as revenue is translated and reported in Canadian dollars," the company stated in a press release. "This factor accounted for approximately one half of the revenue decline."

The press release went on to identify another factor playing a crucial role in the reversal of the company’s fortunes, as it confirmed that the non-renewal of a significant licensee late in the fourth quarter of 2010 was a primary factor.

However, the decline in the value of the Euro and the British pound against the Canadian dollar accounts for approximately one half of the revenue slump as the revenue is translated and reported in Canadian dollars.

The net loss for the year was $7.1 million or 39 cents per share, compared with a net loss of $2.7 million or 14 cents per share in 2009. Stock in the company has dropped by two cents per share in light of the financial announcements.

Chartwell specializes in the development of leading-edge games, gaming systems and platform for the regulated online casino gaming industry.