THE CANADIAN PRESS

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DUBLIN, Ireland - Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) said Thursday that it expects to bounce back from a disappointing 2008 with net profits of between US$9 million and $10 million next year. The forecasted earnings amount to between 65 and 71 cents a share.

The company, which is based in Dublin, Ireland but still maintains operations in Canada and is traded on the Toronto Stock Exchange, said it expects to return to profitability in the second quarter of 2009.

CryptoLogic, which reports in U.S. dollars, said its previously announced restructuring plan will help the company reduce its total operating costs to $13 million for the year. Money-saving measures include the outsourcing of its poker network and a 75 per cent reduction in office and rental costs.

The profit projections come despite the $3.5 million cash costs and up to $20 million in further non-cash charges that the company expects to incur through its restructuring effort.

CryptoLogic said its growth strategy is centred on its online casino business and the development and licensing of internet games.

"CryptoLogic has taken radical steps to focus on its core strengths as a developer of exciting online gaming content," chief executive Brian Hadfield said in a statement. "Our streamlined operations, lower operating costs and commitment to creating compelling customer experience, together with a highly profitable build-once-sell-often model, provides a solid springboard for long-term growth and shareholder value."

CryptoLogic has struggled to stay in the black in 2008, most recently reporting a fiscal third-quarter loss of $5.9 million or 45 cents per share.