March 17, 2010 18:07 ET

Chartwell Announces Financial Results for the Three Months Ended January 31, 2010

CALGARY, ALBERTA--(Marketwire - March 17, 2010) - Chartwell Technology Inc. ("Chartwell" or the "Company") (TSX:CWH), a leading provider of gaming software systems and entertainment content to the online and remote gaming industry, announces unaudited financial results for the three months ended January 31, 2010.

Three months ended January 31, 2010

Revenue for this year's first quarter was $3.5 million compared to $4.2 million for the same period a year earlier. Net loss for the first quarter was $0.8 million, a loss per share of $0.04 as compared to a net loss of $0.1 million or $0.01 per share from continuing operations and $0.7 million or $0.04 per share after discontinued operations in the same quarter of the last fiscal year. Cash flow from operations before working capital adjustments similarly declined from $0.6 million to cash used in operations of $0.4 million.

During the quarter, software development and support expense increased 13.2% to $2.4 million over the same period of fiscal 2009. Sales and marketing expenses decreased from $0.6 million to $0.5 million while general and administrative expenses decreased from $1.0 million to $0.9 million in the first quarter of 2010.

"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", comments 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 ("CGP") with Betaland, a Gaming VC Holdings SA subsidiary. The CGP offers the most advanced gaming platform designed for efficient implementation of both internally developed and third-party games, giving our 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 have been well received by both clients and prospects alike" adds Mr. Richter. "The CGP is a licensed and fully integrated gaming platform which allows for an efficient implementation of additional gaming content which in turn, should drive incremental revenues to Chartwell over the balance of this fiscal year."

Balance sheet strength

The Company continued to maintain a strong balance sheet. At January 31, 2010 the Company had $17.4 million of cash and short-term investments and working capital of $21.2 million.

Normal Course Issuer Bid

The Company's Normal Course Issuer Bid ("NCIB") effective for a period of twelve months from March 26, 2009 nears expiry. Chartwell's Board of Directors has authorized the commencement of a new NCIB and the Company intends to seek TSX approval for a new NCIB for an additional period of twelve months.

About Chartwell

Chartwell specialises in the development of leading-edge games, gaming systems, and platform for the regulated online casino gaming industry. Chartwell is certified or licensed to offer a range of services in all of the leading regulated online gaming markets. Chartwell is not a gaming operator; their clients own their brands and databases entirely and exclusively. Chartwell's team of highly trained professionals is committed to delivering the highest quality software and maintaining its market edge through continuous development and unparalleled customer support.

Chartwell invites you to preview our company and gaming applications at  

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. A return to profitability is dependent upon our ability to increase revenue and to maintain current expense levels. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results and information provided by third party sources considered to be accurate have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation and laws affecting international operations, the impact of price competition, loss of business or credit risks associated with current and prospective major customers, general industry and market conditions and growth rates, currency rate fluctuations, the impact of consolidations in the online gaming industry and other risks detailed from time to time in Chartwell's Annual Information Form and Management's Discussion and Analysis, both of which may be found at

The TSX does not accept responsibility for the adequacy or accuracy of this release.

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