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Cryptologic CEO noelting resigns suddenly
Gambling software firm
Robert Thompson
National Post
Tuesday, July 16, 2002
National Post
Jean Noelting resigned as Cryptologic chief executive 18 months after taking the reins of the gambling software company.
Jean Noelting, chief executive of embattled gambling software company CryptoLogic Inc., resigned unexpectedly yesterday, and the company moved quickly to announce his replacement.
Mr. Noelting had been with CryptoLogic for 18 months, having taken over from Mark and Andrew Rivkin, the company's founders.
His time on the job coincided with a number of difficult challenges and the company's share price had slid $17.20 or 61% since the start of the year. Shares in CryptoLogic fell 7% yesterday to close at $10.90.
Mr. Noelting led the company when it announced it would have to write off its US$9.5-million investment in Sports.com Ltd., a U.K.-based online gaming business that was forced into bankruptcy protection in May.
Slowing sales also compelled the online gambling company to cut its second-quarter revenue forecast from between US$9.5-million and US$10.5 million to US$8.8-million to US$9-million. A year earlier, the company earned US33˘ a share on sales of US$10.8-million.
Brandon Osten, an analyst with Sprott Securities, said Mr. Noelting's time with the company was rocky because of battles over U.S. regulatory issues and the inability of CryptoLogic to process credit card transactions in the United States.
"There's been lots of bad news surrounding the company, but much of it is industry-wide problems," said Mr. Osten.
CryptoLogic denied Mr. Noelting had been fired, saying his resignation came about through a mutual agreement with the company's board of directors.
Mr. Noelting will be replaced by Lewis Rose, who had previously worked as president of Alliance Atlantis Communications Inc. and president of Maple Leaf Foods Inc.'s grocery products division.
Mr. Rose said there are numerous challenges facing CryptoLogic, but added the company would not back down from doing business in the United States.
"We expect to continue growing our business in Europe while also pursuing growth in the U.S.," he said. He said the company will have to continue looking for alternative payment arrangements after U.S. credit card companies refused to validate online gambling transactions.
Mr. Osten said CryptoLogic's new CEO has strong work experience, but faces concerns that are unique to the online gambling industry.
"He brings a good operational résumé to the job," said Mr. Osten. "But I don't yet know whether he is prepared for the issues that are facing him."
Gambling software firm
Robert Thompson
National Post
Tuesday, July 16, 2002
National Post
Jean Noelting resigned as Cryptologic chief executive 18 months after taking the reins of the gambling software company.
Jean Noelting, chief executive of embattled gambling software company CryptoLogic Inc., resigned unexpectedly yesterday, and the company moved quickly to announce his replacement.
Mr. Noelting had been with CryptoLogic for 18 months, having taken over from Mark and Andrew Rivkin, the company's founders.
His time on the job coincided with a number of difficult challenges and the company's share price had slid $17.20 or 61% since the start of the year. Shares in CryptoLogic fell 7% yesterday to close at $10.90.
Mr. Noelting led the company when it announced it would have to write off its US$9.5-million investment in Sports.com Ltd., a U.K.-based online gaming business that was forced into bankruptcy protection in May.
Slowing sales also compelled the online gambling company to cut its second-quarter revenue forecast from between US$9.5-million and US$10.5 million to US$8.8-million to US$9-million. A year earlier, the company earned US33˘ a share on sales of US$10.8-million.
Brandon Osten, an analyst with Sprott Securities, said Mr. Noelting's time with the company was rocky because of battles over U.S. regulatory issues and the inability of CryptoLogic to process credit card transactions in the United States.
"There's been lots of bad news surrounding the company, but much of it is industry-wide problems," said Mr. Osten.
CryptoLogic denied Mr. Noelting had been fired, saying his resignation came about through a mutual agreement with the company's board of directors.
Mr. Noelting will be replaced by Lewis Rose, who had previously worked as president of Alliance Atlantis Communications Inc. and president of Maple Leaf Foods Inc.'s grocery products division.
Mr. Rose said there are numerous challenges facing CryptoLogic, but added the company would not back down from doing business in the United States.
"We expect to continue growing our business in Europe while also pursuing growth in the U.S.," he said. He said the company will have to continue looking for alternative payment arrangements after U.S. credit card companies refused to validate online gambling transactions.
Mr. Osten said CryptoLogic's new CEO has strong work experience, but faces concerns that are unique to the online gambling industry.
"He brings a good operational résumé to the job," said Mr. Osten. "But I don't yet know whether he is prepared for the issues that are facing him."