CHARTWELL REACHES PROFITABILITY IN THIRD QUARTER
CHARTWELL REACHES PROFITABILITY IN THIRD
QUARTER
Chartwell Technology Inc. CDNX: CWH
Calgary, Canada October 9, 2001, Chartwell Technology
Inc. (CDNX: CWH) a leading provider of interactive media and information
systems for companies engaged in the Internet gaming industry, announces results
for the three and nine month periods ended July 31, 2001.
The third quarter ended July 31, 2001 represents a significant milestone in Chartwell's development as our first profitable or break-even quarter. While we do not expect to show a profit for the fiscal year, our break-even quarter represents a validation of both our business plan and our unique business model. For any start-up technology company, the first break-even quarter marks a transitional point from a development focus to more of a product based business from which sustained growth and profitability can be achieved. Our business model precludes participation in the online gaming business of our clients.
Our development focus during the quarter centered on the expanded functionality of our administrative software to provide operators with more promotional and reporting tools. We also released the beta version of our new Flash casino games and Bingo product. Our Flash product is the next step in our plan to deliver the broadest selection of Internet platforms and access options which will be rounded out with the release of our Java download Casino product later this year.
Revenues for the third quarter were $928,663, an increase of 255% over the corresponding period of the previous year and a 54% increase over the preceding quarter. The majority of revenues were generated by our subsidiary company, Chartwell Games Corp. through software licensing and development fees. Expenses for the quarter were $926,911, an increase of 11% over the prior year and an increase of 7% from the preceding quarter. The majority of these expenses related to software development.
Chartwell posted a profit of $1,752 for the third quarter
compared with a loss of $574,133 in the corresponding period of the prior year
and a loss of $961,098 in the preceding quarter. Expenses related to software
development are not capitalized. Working capital at the end of the period was
$7,283,128.
Our objectives for the fourth quarter will be to release the commercial version of our Flash casino and bingo products and to continue the expansion of our customer base on which we expect to achieve a profitable fiscal 2002. We are confident that we will meet these objectives during the fourth quarter.
Our
continued dedication to development, evidenced by our Flash and Java v3.0 Online
Gaming software releases have reaffirmed our position as the leading supplier
of in-browser software to the Internet gaming and entertainment industries.
Chartwell Technology Inc. specializes in the development of leading edge gaming applications and entertainment content for the Internet. Chartwell's Java and Flash based software products and 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.
Chartwell invites you to preview and play our games at: www.chartwelltechnology.com.
For further information, please contact:
Chartwell Technology Inc.
Darold H. Parken, President (877) 261-6619 or (403) 261-6619 dhp@chartwelltechnology.com
David Bajwa, Investor Relations (877) 669-4180 or (604) 669-4180 info@chartwelltechnology.com
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
This press release contains "forward-looking statements" including management's beliefs, expectations or projections related to the Company's business prospects, capital raising and secondary markets for the Company's securities. Actual results could differ materially from those set forth in forward-looking statements. You are cautioned against placing undue reliance on the forward-looking statements.