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.

Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: Frederick Langford who wrote (14254)	9/6/2001 3:06:49 AM
From: WhatsUpWithThat	Respond to of 208838

Weird movement today, though; it was immune to the general bounce. Wondered at first if it was that there was talk of an announcement on earnings and it made people nervous (though it looked fine when it was released), but now I wonder if it wasn't news of a hack that skimmed off nearly $2m? Don't see the NR on Marketwatch, but CryptoLogic Inc CRY Shares issued 13,121,959 Sep 5 2001 close $32.930 Wednesday Sep 5 200 News Release Mr. Jean Noelting reports CryptoLogic has commenced the certification process in the Isle of Man and Alderney -- major new markets the British government recently opened up for regulated Internet gaming that have attracted some of the most recognized names in the gaming industry. As part of its continuing commitment to regulatory compliance for safe and secure on-line gaming, the company also advised that it has swiftly resolved a recent system intrusion with minimal effect. "At CryptoLogic, we're excited by the growth of responsible and regulated on-line gaming around the world," said Jean Noelting, CryptoLogic's president and chief executive officer. "We've made no secret of our commitment to high standards in security and our belief in regulating the industry for the benefit of everyone." CryptoLogic is in the final stages of certification in Australia -- widely seen as the world's strictest regulatory model. The company has now commenced the compliance process in the Isle of Man and Alderney, which are both highly regulated environments for on-line gaming. Given its significant investments in Australia, CryptoLogic believes it is well positioned to meet the requirements in these two jurisdictions in a shorter time frame and expects that software certification in the Isle of Man will be completed by year-end. Thanks to CryptoLogic's comprehensive security system and compliance processes, the company promptly detected and resolved a recent system intrusion that caused higher win rates in certain games. There was no compromise of player information, no disruption of service and players were paid out in the normal course. The company's effective detection systems and response procedures minimized exposure to the organization and its customers to a net effect of $600,000 (U.S.), after an expected insurance claim of $1.3-million (U.S.). CryptoLogic's solid performance earlier in the quarter and strong current momentum are expected to offset the effect resulting from this incident. Management anticipates financial results will remain on target with its guidance for the third quarter -- projected revenue of $9.7-million (U.S.) to $10.2-million (U.S.) and net income of between $4.2-million (U.S.) and $4.6-million (U.S.), well ahead of the 2000 third quarter of $8.1-million (U.S.) in revenue and $2.6-million (U.S.) in net income. CryptoLogic has followed self-regulation practices since its early days including annual IT system reviews as well as continuing probity performed through KPMG. The company's commitment to regulatory compliance raises the bar by subjecting CryptoLogic to rigorous, external monitoring and audits by government regulators. "Among our clients, CryptoLogic is one of the most conscientious with regard to probity of its licensees and employees," said Norman Inkster, global managing partner of KPMG's forensic and litigation unit. "They have always emphasized the importance of strong external and internal security practices and take seriously our recommendations that further enhance their operation and software." WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com