Cryptologic Announces Third Quarter Results.TORONTO--(BUSINESS WIRE)--Oct. 27, 1998--CryptoLogic Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CRY) announced today its third quarter results. Total revenue for the quarter ended September September: see month. 30th, 1998 totaled $7.77 million, an increase of $1.85 million or 31% over the same period last year. Net earnings for the quarter totaled $5.88 million, an increase of $1.86 million or 46% over the same period last year. As a result, earnings per share in the third quarter of 1998 were $0.69 compared to $0.55 in the third quarter of 1997. On a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, earnings per share were $0.39 for the third quarter of 1998, compared to $0.25 for the third quarter of 1997. Net earnings for the nine months ended September 30, 1998 totaled $16.86 million, compared to $7.47 million in 1997, an increase of $9.39 million or 126%. For the nine months, earnings per share were $2.01, and $1.12 on a fully diluted basis compared to $1.13 and $0.49 fully diluted in the third quarter of 1997. At the end of the third quarter, CryptoLogic's cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , including restricted cash totaled $27.73 million. During the third quarter, CryptoLogic cryp·tol·o·gy n. The study of cryptanalysis or cryptography. cryp  to·log released Version released version - release 3.0 of its
Internet InternetPublicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the gaming software. The new software has many new features including multi-player games, a 3D panoramic pan·o·ram·a n. 1. An unbroken view of an entire surrounding area. 2. A comprehensive presentation; a survey: a panorama of American literature. 3. environment, chat functionality that allows the players to communicate with each other while playing, as well as the ability for players to browse (1) To view the contents of a file or a group of files. Browser programs generally let you view data by scrolling through the documents or databases. In a database program, the browse mode often lets you edit the data. See Web browser. the Internet while they play. This new software ensures that licensees will continue to offer the best gaming software on the Internet, and enables CryptoLogic to continue to lead this market. CryptoLogic is in the business of software development and management that permits the processing of Internet based transactions. Its current focus is on electronic commerce and Internet gaming software. CryptoLogic's common shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol CRY. There are currently 8.5 million common shares outstanding (15.4 million shares fully diluted). -0-
3rd Quarter 1998 3rd Quarter 1997
Gross revenue $7.77M $5.92M
Net earnings $5.88M $4.02M
Earnings per share $0.69 $0.55
Fully diluted earnings per share $0.39 $0.25
CRYPTOLOGIC INC.
CONSOLIDATED INTERIM BALANCE SHEET
AS AT SEPTEMBER 30, 1998
(amounts in thousands)
(UNAUDITED)
September 30 September 30
1998 1997
ASSETS
CURRENT
Cash and cash equivalents $ 21,110 $ 4,207
Restricted cash 6,623 415
Reserves and deposits with
credit card processors 3,232 3,711
Accounts receivable 692 2,449
Prepaid expenses and other 295 209
------------- -------------
31,952 10,991
CAPITAL ASSETS 396 223
NOTES RECEIVABLE 32 74
------------- -------------
$ 32,380 $ 11,288
------------- -------------
------------- -------------
LIABILITIES
CURRENT
Accounts payable and accrued
liabilities $ 2,187 $ 530
Provision for income taxes 206 489
Funds held on deposit 1,162 515
------------ ----------
3,555 1,534
------------ -----------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 4,168 3,230
RETAINED EARNINGS 24,657 6,524
------------- ----------
28,825 9,754
------------- ----------
$32,380 $11,288
------------- ----------
------------- ----------
CRYPTOLOGIC INC.
CONSOLIDATED INTERIM STATEMENT OF EARNINGS AND RETAINED EARNINGS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
(amounts in thousands except per share information)
(UNAUDITED)
For the three months For the nine months
ended ended
September 30, September 30,
1998 1997 1998 1997
REVENUE $ 7,467 $ 5,878 $ 23,503 $ 11,168
INTEREST EARNED 302 44 630 68
-------- -------- -------- ---------
7,769 5,922 24,133 11,236
-------- -------- -------- ---------
EXPENSES
Software development and
support costs 2,240 1,176 7,137 2,369
General and administrative 585 194 1,378 496
Loss/(Gain) on foreign
exchange (900) 6 (1,487) 44
Financial costs 25 3 46 8
Amortization 31 13 87 33
------- --------- --------- -------
1,981 1,392 7,161 2,950
------- --------- --------- -------
EARNINGS BEFORE THE
UNDERNOTED 5,788 4,530 16,972 8,286
------- -------- ---------- -------
Recovery of write-down
of receivables (363) -- (790) --
Defence of legal action -- 249 -- 331
------- -------- --------- -------
(363) 249 (790) 331
------- -------- --------- -------
EARNINGS BEFORE PROVISION
FOR INCOME TAXES 6,151 4,281 17,762 7,955
PROVISION FOR INCOME TAXES 271 258 904 489
------- -------- --------- -------
NET EARNINGS 5,880 4,023 16,858 7,466
RETAINED EARNINGS/
(DEFICIT) BEGINNING OF PERIOD
18,777 2,501 7,799 (942)
------- -------- --------- --------
RETAINED EARNINGS END
OF PERIOD $ 24,657 $ 6,524 $ 24,657 $ 6,524
-------- -------- ---------- --------
EARNINGS PER COMMON
SHARE $ 0.69 $ 0.55 $ 2.01 $1.13
WEIGHTED AVERAGE NUMBER
OF SHARES (,000) 8,464 7,267 8,371 6,588
FULLY DILUTED EARNINGS PER
COMMON SHARE $ 0.39 $ 0.25 $ 1.12 $ 0.49
WEIGHTED AVERAGE NUMBER OF
SHARES FULLY DILUTED (,000)15,335 15,955 15,284 15,276
CRYPTOLOGIC INC.
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
(amounts in thousands)
(UNAUDITED)
For the three months ended For the nine months ended
September 30, September 30,
1998 1997 1998 1997
Cash provided by (used for) Operating Activities:
Net earnings $ 5,880 $ 4,023 $ 16,858 $ 7,466
Non-cash items:
Loss on disposal of
capital assets -- -- -- 3
------------ --------- ---------- ------
Amortization 31 13 87 33
5,911 4,036 16,945 7,502
Sources and uses of cash
through working capital 2,056 (3,442) 815 (5,027)
----------- ---------- -------- --------
7,967 594 17,760 2,475
----------- ---------- -------- --------
Investing Activities:
Additions to capital
assets (42) (60) (120) (139)
----------- ---------- --------- -------
Financing Activities:
Capital stock, conversion
of preference shares
and warrants issued
and exercised 9 326 647 1,599
Notes receivable -- (22) -- (54)
------------ ---------- -------- -------
9 304 647 1,545
------------- --------- -------- -------
Increase in Cash Position 7,934 838 18,287 3,881
Cash position, beginning
of period 19,799 3,784 9,446 741
----------- ---------- -------- -------
Cash position, end of
period $ 27,733 $ 4,622 $ 27,733 $ 4,622
------------ ---------- --------- -------
Cash position is defined as cash and cash equivalents plus
restricted cash.
INVITATION TO PARTICIPATE
IN ANALYST CONFERENCE CALL
Date: Friday October 30, 1998
Time: 11:00 a.m. EST
Dial-In Number: 1-800-521-4255
CryptoLogic cordially invites you to participate in the Company's 3rd Quarter analyst conference call. Management will briefly review the financial results and performance for this past Quarter. The Company's growth strategy will be discussed, and management's comments will be followed by a questions and answer period. CryptoLogic is a software development company with leading proprietary technology enabling secure, high speed financial transactions over the Internet. The Company's systems are currently being utilized worldwide for Electronic Commerce and Internet gaming by more than 200,000 individuals in over 200 countries. CryptoLogic's unique, proven Server Technology has processed more than US$550 million worth of Electronic Commerce Transactions since [November November: see month. 1996.] CryptoLogic's common shares trade on the TSE under the symbol CRY. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8.5 million common shares are outstanding. For further information, please visit CryptoLogic's website at www.cryptologic.com. To participate in the call, please dial 800/521-4255 approximately 5 minutes before the scheduled starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first . To participate in the question and answer period following management's comments, press the "1" key on your telephone pad, followed by the "4" key. You will be held in priority sequence. If your question has already been answered and you wish to decline from the polling process, press the "1" key followed by the "3" key. If you are accidentally disconnected from the call, you may re-dial the bridge at 800/521-4255. If you encounter any difficulties during the call, please hang up and call the Confertech Help Line at 800/267-5196. For those who are unable to participate in the scheduled conference call, a rebroadcast will be available from approximately 11:00 a.m., up until midnight on Sunday Sunday: see Sabbath; week. November 1. To listen to the rebroadcast, please call 800/558-5253, and then enter the reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 1743065, following the instructions given. We hope you will be able to participate. |
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