5/19/2004
Calgary, Canada, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to online casinos and the remote gaming industry, announces financial results for the first quarter.
Highlights of the quarter included:
Revenue of $2.3M compared with $1.7M during the same period in fiscal 2003
Operating income of $604K or $0.04 per share and net income of $559K or $0.04 per share compared with operating and net income $348K or $0.03 per share during the same period in fiscal 2003
Software license fees of $1.9M compared to $1.2M during the same period in fiscal 2003
Cash flow from operations of $821K compared to ($35K) during the same period in fiscal year 2003-
Working capital of $7.4M.
"We have consistently provided earnings over the last five quarters and our continued growth in sustainable recurring license fees gives us the means to accelerate our growth during fiscal 2004", says Don Gleason, Chief Financial Officer. "We are continuing to expand our portfolio of online casino games and through new delivery channels like mobile we expect to broaden our customer base and drive incremental revenue for the remainder of the year."
Revenue for the three months ended January 31, 2004 was $2,340,345, an increase of 38% compared to $1,691,476 in the same period of 2003. Online Casino and other casino software license fee revenue for the first quarter of 2004 increased by 64% to $1,939,199 compared to $1,183,308 for the same period of the previous year. License fee revenue continues to show quarter over quarter growth and accounted for 83% of the Company's revenue compared to 70% in the first quarter of 2003.
Operating Expenses
Total operating expenses, excluding the positive effect of foreign exchange gains, for the three months ended January 31, 2004, increased by 32% to $1,777,878 compared to $1,343,863 for the same period of 2003. Software development and online casino customer support costs, which account for 55% of operating costs, increased by 12% to $972,240 compared to $871,853 for the same period of 2003. General and administrative expenses, which include all costs relating to sales, marketing, business development and corporate support personnel, totaled $771,705 compared to $423,201 for the same period of 2003. The overall increase in expenses is primarily due to salary and benefit costs resulting from the addition of development, support and marketing personnel over the course of the last year.
About Chartwell
Chartwell Technology Inc. specializes in the development of leading edge gaming applications and entertainment content for online casinos and wireless platforms and other remote access devices. Chartwell's Java and Flash based software products and online casino games are designed for deployment in gaming, entertainment, advertising and promotional applications. Chartwell does not participate in the online gaming business of its clients. Chartwell's team of highly trained professionals is committed to delivering the highest quality software and maintaining its leading edge through continuous development and unparalleled customer support.
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