Cryptologic Announces Second Quarter Results: 54 percent
Increase In Revenues, 48 percent Increase In Income
TORONTO, CANADA--(stated in US$) CryptoLogic Inc. announced today
its second quarter results. Total revenue for the three months
ended June 30th, 1999 totaled US $8.0 million, an increase of $2.8
million or 54 percent over the same period last year. Net income
for the quarter totaled $4.9 million, an increase of $1.6 million
or 48 percent over the same period last year.
As a result, earnings per share in the second quarter of 1999 were $0.57 compared to $0.39 in the second quarter of 1998. On a fully
diluted basis, earnings per share were $0.32 for the second quarter of 1999, compared to $0.22 for the second quarter of 1998.
At the end of the second quarter, CryptoLogic's cash and cash
equivalents, including restricted cash totaled $36.4 million.
Total revenue for the six months ended June 30th, 1999 totaled US
$16.2 million, an increase of $4.8 million or 42 percent over the
same period last year. Net income for the six months totaled $10.3
million, an increase of $3.1 million or 43 percent over the same
period last year. As a result, earnings per share in the first six
months of 1999 were $1.21 compared to $0.87 in the first six
months of 1998. On a fully diluted basis, earnings per share were
$0.67 for the first six months of 1999, compared to $0.48 for the
first six months of 1998.
/T/
(Amounts stated 2nd Six Months 2nd Six
in millions of Quarter ended Quarter Months
U.S. dollars, 1999 June 30, 1998 ended
except per share 1999 June 30,
disclosure) 1998
---------------------------------------------------------------
Revenue $8.0M 16.2M $5.2M $11.4M
---------------------------------------------------------------
Net income $4.9M $10.3M $3.3M $7.2M
---------------------------------------------------------------
Earnings per share $0.57 $1.21 $0.39 $0.87
---------------------------------------------------------------
Fully diluted
earnings per share $0.32 $0.67 $0.22 $0.48
---------------------------------------------------------------
Cash flow from
operations $5.7M $13M $4.1M $6.5M
---------------------------------------------------------------
Cash flow from
operations per share $0.67 $1.53 $0.49 $0.77
---------------------------------------------------------------
Fully diluted cash flow from operations
per share $0.37 $0.84 $0.27 $0.42
---------------------------------------------------------------Average number of
shares 8.5M 8.5M 8.5M 8.3M
---------------------------------------------------------------
Average fully diluted
number of shares 15.6M 15.5M 15.3M 15.2M
---------------------------------------------------------------/T/
Total revenue for the second quarter was 3.4 percent lower than in
the first quarter of 1999. In 1998, total revenue for the second
quarter was 15.6 percent lower than in the first quarter of that
year. Management believes that this trend can be attributed to
seasonality and is similar to what is noted elsewhere in the
Internet industry. The effect of seasonality is considerably less
in 1999 (3.4 percent) than in 1998 (15.6 percent).
On April 15, 1999, the Company announced its intentions to apply
for listing on the Nasdaq National Market. Management anticipates
the submission of its application to occur in the early fall as
scheduled, enabling greater investment exposure in the United
States marketplace.
Pursuant to the normal course issuer bid, the Company purchased
25,000 common shares at a price of CDN $17.50 during the latter
part of June 1999. Under the issuer bid, which expires on May 12,
2000, the Company has the right to purchase an additional 400,000
common shares. During the quarter, CryptoLogic's wholly owned subsidiary IOLL completed two new licensing agreements for its gaming software and looks forward to the launch of Version 4.0 of this leading gaming application in the latter part of 1999.
Management also continues to pursue opportunities in worldwide
markets including Australia, Asia and Europe to promote its
state-of-the-art Internet software applications for both
electronic commerce and Internet gaming. CryptoLogic's gaming
software is currently accessible in Japanese, English, and Spanish
with several additional languages becoming available in the coming
year. The additional languages that are becoming available will
increase the potential to expand into international markets and
appeal to foreign jurisdictions.
CryptoLogic Inc. is a software development company with leading
proprietary technology enabling secure, reliable, high-speed
private financial transactions over the Internet. CryptoLogic
continues to innovate and develop state of the art Internet
software applications for both electronic commerce and Internet gaming.
CryptoLogic's common shares trade on the Toronto Stock Exchange
under the symbol CRY. There are currently 8.5 million common
shares outstanding (15.6 million shares fully diluted). |
