Earnings: When comparing remember US$.
Trailing eps US$1.10, CRY is trading at a 10 multiple, this has to go up.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWSFOR: CRYPTOLOGIC INC.
TSE SYMBOL: CRYFEBRUARY 17, 1999
CryptoLogic Announces 84 Percent Revenue Growth And 60
Percent Earnings Growth For 1998 (174 Percent AfterUnusual Items)
TORONTO, CANADA--December 31, 1998 - Fourth quarter results: Q4
revenues were up 39 percent totaling $6.4 million compared to $4.6
million in Q4 1997 (all items are stated in US dollars). As a
result, basic earnings per share were $0.73 ($0.51 before unusual
items) compared to $0.11 ($0.45 before unusual items) in Q4 1997.
Fully diluted earnings per share were up 566 percent totaling
$0.40 ($0.28 before unusual items) compared to $0.06 ($0.23 before
unusual items) in Q4 1997.
Net income for Q4 was up 588 percent totaling $6.2 million ($4.3
million before unusual items) compared to $0.9 million ($3.5
million before unusual items) in Q4 1997. December 31, 1998 Year End Results
1998 Revenues were up 84 percent totaling $22.9 million compared
to $12.5 million in 1997 (all items are stated in US dollars). As
a result, basic earnings per share for 1998 were $1.99 ($1.70
before unusual items) compared to $0.89 ($1.29 before unusual
items) for 1997. Fully diluted earnings per share were up 155
percent totaling $1.10 ($0.94 before unusual items) compared to
$0.43 ($0.62 before unusual items) for 1997.
Net income for the year ended December 31, 1998 was up 174 percent
totaling $16.7 million ($14.3 million before unusual items)
compared to $6.1 million ($8.9 million before unusual items) in
1997, an increase of $10.6 million.
In 1998, CryptoLogic made significant progress in strengthening
its position in Internet transaction processing and entertainment,
and in improving its operations to manage the strong growth of its
proprietary technologies and systems.
The Company added four new licensees to its group of industry
leaders, completed its first strategic investment in Electronic
Card Systems, a credit card transaction processor, and made
significant additions to its management team.
CryptoLogic Inc. is an Internet software development company with
leading proprietary technologies that enable secure, high-speed
financial transactions over the Internet, and provide state of the
art e-commerce and licensing of online gaming applications.
CryptoLogic Inc. is a public company listed on the TSE, trading
under the symbol CRY. There are currently 8.5 million common
shares outstanding, 15.4 million shares fully diluted. /T/
FINANCIAL HIGHLIGHTS
(US$ thousands except for per share information)
---------------------------------------------------------------
Fourth Quarter Fourth Quarter
1998 1997
---------------------------------------------------------------
Revenue $6,409 $4,630
---------------------------------------------------------------
Expenses $1,871 $1,270
---------------------------------------------------------------
Unusual items ($1,870) $2,590
---------------------------------------------------------------
Income taxes $228 ($120)
---------------------------------------------------------------
Net income before unusual items $4,310 $3,470
---------------------------------------------------------------
Net income after unusual items $6180 $880
---------------------------------------------------------------
Basic EPS $0.73 $0.11
before unusual items $0.51 $0.45
---------------------------------------------------------------
Fully Diluted EPS $0.40 $0.06
before unusual items $0.28 $0.23
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(US$ thousands except for per share information)
---------------------------------------------------------------
Year ended 1998 Year ended 1997
---------------------------------------------------------------
Revenue $22,921 $12,488
---------------------------------------------------------------
Expenses $7,785 $3,335
---------------------------------------------------------------
Unusual items (x)($2,423) (xx)$2,814
---------------------------------------------------------------
Income taxes $846 $223
---------------------------------------------------------------
Net income before unusual
items $14,290 $8,930
---------------------------------------------------------------
Net income after unusual
items $16,713 $6,116
---------------------------------------------------------------
Basic EPS $1.99 $0.89
before unusual items $1.70 $1.29
---------------------------------------------------------------
Fully Diluted EPS $1.10 $0.43
Before unusual items $0.94 $0.62
---------------------------------------------------------------
(x)1998 recovery of receivable
(xx)1997 write down of receivable and cost of defense of legal action
INVITATION TO PARTICIPATE IN ANALYST CONFERENCE CALL
Date: Thursday February 18, 1999Time: 4:15 p.m. EST
Dial-In Number: 1-800-381-9619/T/
Andrew Rivkin, President and CEO, and Mark Rivkin, Executive Vice
President and Secretary of CryptoLogic Inc., cordially invite you
to participate in the Company's 4th Quarter analyst conference
call. Management will briefly review the financial results and
performance for calendar 1998, which represents the second full
year of CryptoLogic's commercial operations (press release
attached.) The Company's growth strategy will be discussed, and
management's comments will be followed by a questions and answer period.
CryptoLogic Inc. is an Internet software development company with
leading proprietary technologies that enable secure, high-speed
financial transactions over the Internet, and provide state of the
art e-commerce and licensing of online gaming applications to
Internet casino operators.
To participate in the call, please dial 1-800-381-9619
approximately 5 minutes before the scheduled starting time. 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 1-800-381-9619 If you encounter any
difficulties during the call, please hang up and call the
Confertech Help Line at 1-800-267-5196.
For those who are unable to participate in the scheduled
conference call, a rebroadcast will be available from
approximately one hour after the completion of the call, up until
midnight on Monday February 22, 1999. To listen to the
rebroadcast, please call (800) 558-5253, and then enter the
reservation number 1791441, following the instructions given.
We hope you will be able to participate. -30-
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