Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Cryptologic (CRY/TSE): First Profitable Internet Casino -- Ignore unavailable to you. Want to Upgrade?

To: Mephistopheles who wrote (1074)	7/25/1999 9:14:00 PM
From: DaveAu	Respond to of 2782

<<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).>> The results look reasonable but does the Q2 revenue include half a million in initial license fees for the two new licensees ? If so, the dip from Q1 is more pronounced than management is letting on. Q1 did not include any initial license fees. Rivkin has been stating all year that they expect 4 new licensees this year. Is he purposely splitting the initial fee revenue between the 2 weak summer quarters? That's what I would do in his position. We'll find out Tuesday. Perhaps the seasonal issue is also the reason for delaying the Nasdaq listing. If they are planning on listing in October, the first 2 quarterly reports following the listing will be for the seasonally strong quarters. One thing that is encouraging is that they are still calling for version 4 to be delivered this year. Remember that management is very careful about their projections and that they delivered version 3 within their predicted time frame. No mention of the E-commerce product however. We'll need to wait for the CC for that as well. On a final note, things are getting messy between Starnet and Claude Levy/Las Vegas Casino. I think we need to be at least a little concerned that it could somehow spillover to CRY. I wonder if Rivkin will make any comment when this comes up in the CC. BJ