Friday October 19, 7:04 am Eastern Time
Press Release
SOURCE: CryptoLogic Inc.
CryptoLogic Q3 2001 Results Top Financial Targets Revenue Rises 32%, Net Income Up 69%
Among Small Percentage of Public Companies Achieving Financial Projections
TORONTO--(BUSINESS WIRE)--Oct. 19, 2001-- CryptoLogic Inc. (NASDAQ:CRYP - news; TSE:CRY. - news), a leading supplier of software to the Internet gaming and e-commerce industries, today announced its financial results for the third quarter ended September 30, 2001.
All financial figures are expressed in U.S. dollars.
``CryptoLogic continues to be in the top percentile of public companies today meeting its financial targets,'' said Jean Noelting, CryptoLogic's president and CEO. ``Strong revenue growth, high profitability and cash generation remain the priority at CryptoLogic. We projected revenue of $9.7-$10.2 million and net income between $4.2-$4.6 million, well ahead of last year. Our third quarter results meet our financial forecasts. Importantly, business developments are also progressing well against our 2001 objectives and will position us strongly for the future.''
Noelting added, ``We said the second half of this year would see new licensee development and the initial results of CryptoLogic's acquisition plans. This is exactly what CryptoLogic delivered in the third quarter. While the legislative landscape continues to evolve around the world, CryptoLogic is increasing its global presence in strictly regulated geographies - most notably the UK, which is one of the most advanced. CryptoLogic has helped shape the I-gaming industry from its inception. We continue to lead the way - migrating to Tier 1, land-based standards for regulated Web entertainment, broadening the gaming spectrum to attract the mainstream market and accelerating the 'brick and click' strategies of major gaming organizations worldwide.''
Financial Results on Target (all figures in US dollars)
Revenue for the third quarter of 2001 increased 32% to $10.7 million compared to $8.1 million in the prior 2000 quarter. This excludes interest income of $0.5 million in 2001 compared to $0.9 million in the corresponding year quarter. Interest income was historically part of total revenue, but effective the first quarter of 2001 has been reclassified and is shown below income from operations in the consolidated statements of income.
Net income for the quarter rose significantly by 69% to $4.4 million or $0.33 per share($0.30 per share on a fully diluted basis) compared to $2.6 million in the 2000 quarter or $0.18 per share ($0.17 per share on a fully diluted basis). Third quarter expense levels remain relatively consistent for 2001 and reflect the company's continued investment in compliance, infrastructure and development to support a globally diverse organization and client base. CryptoLogic maintained high net margins at 41% for the quarter...
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