Cryptologic Share Discussion Threads

[aleman] 06/8/2004 11:13

Results slightly ahead of forecast:

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CryptoLogic Inc.
06 August 2004

NEWS FOR IMMEDIATE RELEASE
Symbol: TSX: CRY; NASDAQ: CRYP; LSE: CRP



ALL FINANCIAL FIGURES ARE IN US$



CRYPTOLOGIC REPORTS STRONG SECOND QUARTER PERFORMANCE


August 6, 2004 (London, UK) - CryptoLogic Inc., a leading software developer to
the global Internet gaming market, announced today its financial results for the
second quarter and six months ended June 30, 2004. Strong quarterly results
reflected solid revenue growth from existing licensees, continued geographic
diversification and the increasing returns from online poker - one of the
fastest-growing segments in the history of Internet gaming.



'It's been another blue chip quarter for CryptoLogic, reflecting our focused
strategy and the ongoing investment in our company,' said Lewis Rose,
CryptoLogic's President and CEO. 'We are seeing clear benefits from
diversifying CryptoLogic's business in key markets and fast-growing product
segments. In fact, our licensees' central poker room is now ranked among the
top 5 on the Internet. Our financial strength gives us the means to invest
strategically for our future to enhance CryptoLogic's leadership in a
competitive environment, increase our share in major growth areas, and drive
long term, positive returns.'


Financial Highlights Three months ended Six months ended
(in millions of US dollars, except per share data) June 30, June 30,
2004 2003(1) 2004 2003(1)

Revenue $14.9 $10.8 $30.1 $19.7
Earnings $3.2 $2.5 $7.0 $4.3
Earnings per diluted share $0.23 $0.20 $0.52 $0.35


(1) Reflects the expensing of stock options effective January 1, 2003.



Fiscal 2004 second quarter highlights included:


• Quarterly revenue grew 38% to $14.9 million with earnings rising 29%
to $3.2 million or $0.23 per diluted share over the same period in 2003. This
was ahead of analysts' average consensus of $0.20 per diluted share;


• Increasing growth in online poker fees, which now account for 15% of
total year-to-date revenue, up from 12% in the previous quarter. A growing
number of poker licensees, and investment in the product offering and system
scalability contributed to this strong performance. The company's licensees'
central poker room has now risen to number four among the top poker sites on
the Internet.


• The successful launch of Betfairpoker.com, the new poker site for Betfair -
the world's largest betting exchange and the company's most recent UK
customer. This new poker room site both strengthens CryptoLogic's position in
the online poker arena and reinforces the company's reputation for earning the
confidence of the world's top gaming brands; and


• International diversification remained on target for the first half of 2004,
with approximately 60% of licensees' revenue coming from overseas markets,
up from over 55% and 40% in fiscal 2003 and 2002 respectively.



Strong Second Quarter Performance (All financial figures are expressed in US
dollars)

CryptoLogic's solid revenue and earnings performance continued in the second
quarter ended June 30, 2004. Revenue rose 38% to $14.9 million (Q2 2003: $10.8
million). EBITDA(2) for the quarter grew to $4.4 million (Q2 2003: $2.9
million). This resulted in EBITDA(2) margin for the quarter of 30% as a
percentage of revenue, up from 27% last year. Earnings for the quarter rose 29%
to $3.2 million or $0.23 per diluted share (Q2 2003: $2.5 million or $0.20 per
diluted share).



Solid growth from new and existing licensees and increasing fees from online
poker contributed to positive second quarter performance over a year ago.



Revenue for the first six months of 2004 increased 53% to $30.1 million (Q2 2003
YTD: $19.7 million). EBITDA(2) for the first six months in 2004 increased by
82% to $9.0 million (Q2 2003 YTD: $5.0 million). Despite increased costs
associated with investing in the company to drive revenue growth, EBITDA(2)
margin increased to 30%, compared with 25% in the same six-month period of 2003.
Earnings for the first half of 2004 improved by 65% to $7.0 million or $0.52
per diluted share (Q2 2003 YTD: $4.3 million or $0.35 per diluted share).



Financial Strength

CryptoLogic's positive cash generation continued to add to a strong balance
sheet. At June 30, 2004, the company had no debt, and total cash grew to $77.2
million or $5.71 per diluted share (comprising cash and cash equivalents, short
term investments, and including security deposits of $7.0 million).
CryptoLogic's working capital rose to $54.8 million or $4.06 per diluted share.



On August 4, 2004, CryptoLogic's Board declared its quarterly dividend of $0.03
per share, payable on September 15, 2004 to shareholders of record as at
September 8, 2004.



Operating cash flow for the second quarter of 2004 was $2.6 million, compared
with $13.5 million in 2003. Last year's operating cash flow was exceptionally
high due to more favourable security deposit arrangements beginning in 2003 and
the timing of accounts payable.



Global Diversification

CryptoLogic's global diversification strategy continued to result in a
favourable geographic mix. Revenue generated from licensees' international
players remained on target and approximated 60% of revenue for the first half of
2004, compared with over 55% and 40% in fiscal 2003 and 2002 respectively. The
company's efforts to target the UK and Continental Europe have been successful,
as those markets continued strong representation at approximately 30% and 20%
respectively of overall revenue.



The May launch of Betfair, a major UK customer and the largest betting exchange
in the world, will add to CryptoLogic's international reach and expansion in
online poker. The early performance of Betfair's new poker site is highly
promising and reflects the excellent synergies between online poker and
Betfair's player base.



Product Growth

CryptoLogic continued to advance its position in the burgeoning online poker
market, and now powers the fourth highest revenue generating poker room on the
Internet according to PokerPulse, an independent industry research website.
Fees from the company's poker offering have doubled compared with the same
six-month period in 2003, and have increased by 35% since Q1 2004. Today,
online poker has risen to 15% of overall year-to-date revenue. There are now
eight poker licensees contributing favourably to CryptoLogic's financial results
through the company's WagerLogic subsidiary. CryptoLogic is also realizing
early returns from its investment in a new poker release, which introduced
multi-table tournaments as well as enhanced scalability to support thousands of
simultaneous players - around the clock and from all over the world.



During the quarter, CryptoLogic continued to invest in and expand its core
casino product suite with more popular slot games. The company released 11
exciting new video slots - all offering animated bonus rounds that provide more
chances to win cash, prizes and free spins.



Management Team

In the quarter, Jenifer Cua was promoted to Interim Chief Financial Officer and
Treasurer. Cua has been a senior member of the company's financial team for six
years, and has played a key role in CryptoLogic's strong financial results. A
search is underway for a permanent CFO to contribute to the company's continued
success.



Outlook

CryptoLogic's disciplined execution of its strategy and investment in its
business continued to translate into profitable and cash generative results for
the first half of 2004. The third quarter is seasonally the slowest period of
the year as Internet usage softens during the summer. Although this period is
expected to benefit from continued momentum in poker, expenditures resulting
from investments in strategic initiatives will increase and are expected to
affect margins in subsequent quarters this year. Accordingly, Management
forecasts third quarter revenue to range from $14.0-$14.3 million, with earnings
of $1.9-$2.1 million or $0.14-$0.15 per diluted share.



While growth prospects for online gaming are significant, Management remains
cautious due to ongoing US regulatory issues, competition and higher
expenditures, particularly in the second half of the year. Increased
investments in the company's poker product, system scalability, core gaming
software, infrastructure and back-office systems remain important priorities.
Management is confident that this strategy will strengthen the company's
competitive position in both the short and long term, particularly in major
growth areas such as poker, and drive revenue generation and sustainable returns
for its shareholders.



2004 Second Quarter Analyst Call

A conference call is scheduled for 8:30 a.m. (EST) (1:30 p.m. GMT) on Friday,
August 6, 2004. Interested parties should call either 416-695-5259,
1-877-888-3490 (North America) or international toll free number at 00
800-4222-8835 (from UK). Instant replay will be available until August 13, 2004
by calling 416-695-5275 or 1-866-518-1010.



About CryptoLogic (
www.cryptologic.com
)

Focused on integrity and innovation, CryptoLogic Inc. is the largest public
online gaming software company serving the global Internet gaming market. The
company's proprietary technologies enable secure, high-speed financial
transactions over the Internet, and its leadership in regulatory compliance
makes it one of the very few companies with gaming software that is certified to
strict standards similar to land-based gaming. WagerLogic Ltd., a wholly-owned
subsidiary of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers worldwide. For more information on
WagerLogic, visit
www.wagerlogic.com
.



CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY),
on the Nasdaq National Market (symbol: CRYP), and on the Main Market of the
London Stock Exchange (symbol: CRP).





For more information, please contact:


CryptoLogic, [phone] Financial Dynamics, + 44 20 7831 3113(UK media)
Nancy Chan-Palmateer, Director of Communications Juliet Clarke, [e-mail]
Lewis Rose, President & CEO Edward Bridges, [e-mail]
Argyle Rowland, [phone] (North American media)
Daniel Tisch, ext. 223/ [e-mail]
Melissa Chang, ext. 239/ [e-mail]


(2) Management believes that EBITDA (earnings before interest, taxes,
depreciation and amortization) is a useful supplemental measure of performance.
However, EBITDA is not a recognized earnings measure under generally accepted
accounting principles (GAAP) and does not have a standardized meaning.
Therefore, EBITDA may not be comparable to similar measures presented by other
companies.



CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without limitation, risks
associated with the Company's financial condition and prospects, legal risks
associated with Internet gaming and risks of governmental legislation and
regulation, risks associated with market acceptance and technological changes,
risks associated with dependence on licensees and key licensees, risks relating
to international operations, risks associated with competition and other risks
detailed in the Company's filings with securities regulatory authorities. These
risks may cause results to differ materially from those projected in the
forward-looking statements.




CRYPTOLOGIC INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
As at As at
June 30, December 31,
2004 2003
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $22,869 $44,010
Security deposits 7,000 6,550
Short term investments 47,305 16,747
Accounts receivable and other 3,751 2,389
Prepaid expenses 1,716 1,163
82,641 70,859

User funds on deposit 10,558 9,394
Capital assets 6,449 3,915
Intangible assets 147 122
Goodwill 1,776 1,776
$101,571 $86,066

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $25,043 $25,063
Income taxes payable 2,753 1,063
27,796 26,126

User funds held on deposit 10,558 9,394
38,354 35,520

Shareholders' equity:
Capital stock 17,711 11,350
Stock options 506 438
Retained earnings 45,000 38,758
63,217 50,546
$101,571 $86,066







CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(In thousands of US dollars)
(Unaudited)


For the three months For the six months
ended June 30, ended June 30,
2004 2003 2004 2003


Retained earnings, beginning of period $42,195 $32,149 $38,758 $30,376
Earnings 3,197 2,479 7,018 4,252
Dividends paid (392) -- (776) --
Retained earnings, end of period $45,000 $34,628 $45,000 $34,628







CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of US dollars, except per share information)
(Unaudited)


For the three months For the six months
ended June 30, ended June 30,
2004 2003 2004 2003

Revenue $14,925 $10,826 $30,149 $19,727
Expenses
Operating costs 9,230 6,446 18,244 12,088
General and administrative 1,185 1,371 2,691 2,491
Finance 92 78 184 185
Amortization 443 371 867 617
10,950 8,266 21,986 15,381

Income from operations 3,975 2,560 8,163 4,346
Interest income 262 174 506 335

Earnings before income taxes 4,237 2,734 8,669 4,681
Income taxes 1,040 255 1,651 429

Earnings $3,197 $2,479 $7,018 $4,252

Earnings per share
Basic $0.25 $0.20 $0.55 $0.35
Diluted $0.23 $0.20 $0.52 $0.35

Weighted average number of shares ('000s)
Basic 12,979 12,237 12,810 12,222
Diluted 13,734 12,395 13,515 12,312






CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
(Unaudited)


For the three months For the six months
ended June 30, ended June 30,
2004 2003 2004 2003
Cash provided by (used in):

Operating activities:
Earnings $3,197 $2,479 $7,018 $4,252
Adjustments to reconcile earnings to
cash provided by (used in) operating activities:
Amortization 443 371 867 617
Gain on sale of investment -- -- -- (31)
Stock options 274 104 537 162
Changes in operating assets and liabilities:
Security deposits -- 6,290 (450) 8,690
Accounts receivable and other (1,544) (686) (1,362) 186
Prepaid expenses (756) (123) (553) (41)
Income taxes payable 786 379 1,690 479
Accounts payable and accrued liabilities 225 4,654 (20) 6,736
2,625 13,468 7,727 21,050

Financing activities:
Issue of capital stock 1,482 217 5,892 217
Dividends paid (392) -- (776) --
1,090 217 5,116 217

Investing activities:
Purchase of capital assets, net of disposal (2,573) (1,851) (3,337) (1,925)
Purchase of intangible assets -- -- (89) --
Short term investments (7,571) -- (30,558) 10,857
Sale of investment -- -- -- 711
(10,144) (1,851) (33,984) 9,643
Increase (decrease) in cash and cash equivalents (6,429) 11,834 (21,141) 30,910
Cash and cash equivalents, beginning of period 29,298 32,736 44,010 13,660
Cash and cash equivalents, end of period $22,869 $44,570 $22,869 $44,570




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at June 30, 2004
(All figures are in thousands of US dollars, except per share disclosure
and where otherwise indicated)
(Unaudited)


These consolidated interim financial statements of CryptoLogic Inc. (the
'Company') have been prepared in accordance with Canadian generally accepted
accounting principles (GAAP) using the same accounting policies as were used for
the audited consolidated financial statements for the year ended December 31,
2003. These consolidated interim financial statements do not contain all annual
disclosures required by GAAP and, as such, should be read in conjunction with
the audited consolidated financial statements, including the notes thereto, for
the year ended December 31, 2003, as set out in the 2003 Annual Report.



1. Stock Option Plan



In accordance with the guidelines of the Canadian Institute of Chartered
Accountants, the Company has expensed the costs of all stock option grants
issued on or after January 1, 2003. The fair value of the options granted in
2003 and 2004 was made using the Black-Scholes option pricing model under the
following weighted assumptions:


2004 2003

Dividend yield 0.75% 0.75%
Risk-free rate 2.75% 2.75%
Expected volatility 50.0% 50.0%
Expected life of options in years 5.0 5.0



The estimated fair value of options is recorded over the vesting period of the
options. The cost of stock options of $274 in Q2 2004 (Q2 2003: $104) is
included in operating costs. Consideration paid by employees on the exercise of
stock options is credited to share capital.



The impact of expensing stock options on earnings is as follows:


Three months ended Six months ended
June 30, 2004 June 30, 2003 June 30, 2004 June 30, 2003
('000) ('000) ('000) ('000)

Stock options expense $274 $104 $537 $162

Stock options expense (per share):
Basic $0.02 $0.01 $0.04 $0.01
Diluted $0.02 $0.01 $0.04 $0.01





For the year ended December 31, 2002, no compensation cost was recorded on the
grant of stock options during that year. In accordance with the transitional
provisions of the accounting guideline, additional pro forma disclosure is
presented as if the fair value method of accounting had been used to account for
stock options. The fair value of the options granted was made using the
Black-Scholes option pricing model under the following weighted assumptions:


2002

Dividend yield --
Risk-free rate 2.0%
Expected volatility 100.0%
Expected life of options in years 5.0



Had compensation expense been determined based on the fair value of the employee
stock option awards for 2002 grants at the grant dates in accordance with the
new recommendations, the Company's earnings and earnings per share would have
been changed to the following pro forma amounts:


Three months ended Six months ended
June 30, June 30,
2004 2003 2004 2003
As As As As
reported Pro forma reported Pro forma reported Pro forma reported Pro forma
('000) ('000) ('000) ('000) ('000) ('000) ('000) ('000)

Earnings $3,197 $3,073 $2,479 $2,252 $7,018 $6,710 $4,252 $3,840

Earnings per share:
Basic $0.25 $0.24 $0.20 $0.18 $0.55 $0.52 $0.35 $0.31
Diluted $0.23 $0.22 $0.20 $0.18 $0.52 $0.50 $0.35 $0.31





2. Capital Stock



Authorized:
Unlimited common shares


Issued and Outstanding:
Common Shares Series F Warrants Total
Issued Stated Value Issued Stated Value Stated Value
('000) ('000) ('000)

Balance, December 31, 2002 12,206 $10,448 30 $272 $10,720
Exercise of stock options 94 630 -- -- 630
Balance, December 31, 2003 12,300 $11,078 30 $272 $11,350

Balance, December 31, 2003 12,300 $11,078 30 $272 $11,350
Exercise of stock options 764 6,361 -- -- 6,361
Balance, June 30, 2004 13,064 $17,439 30 $272 $17,711





3. Comparative Figures



Certain of the prior year's figures have been reclassified for consistency with
the current presentation, and reflect the expensing of stock options effective
January 1, 2003.




This information is provided by RNS
The company news service from the London Stock Exchange

[aleman] 02/8/2004 09:57

And SBT says market strong:

Sportingbet PLC
02 August 2004


2nd August 2004
Sportingbet Plc
__________________________________________________________________________
Trading Update

Sportingbet Plc (LSE: SBT), the world's largest online betting group, is pleased
to announce that trading throughout the four months ended 31 July 2004 has been
ahead of management's expectations.

Operating profit before goodwill for the traditionally quiet four months is
anticipated to be not less than £2.1m (2003: £0.9m), with cumulative operating
profit before goodwill and exceptional costs for the sixteen months ended 31
July 2004 therefore anticipated to be not less than £21.7m (2003: £15.5m). £2m
of the cash generated during the four month period has been used to reduce debt.

In the four months ended 31 July 2004 organic growth has been strong with 76,922
new customer signups (2003: 68,931). These new customers, together with
increased activity from existing customers, have generated a 55% increase in the
number of sports bets placed to 9.2m (2003: 5.9m). Average gross margin levels
have been pleasing with strong margin during the US baseball season and the Euro
2004 football tournament, more than offsetting lower than average margins from
the U.K. Royal Ascot horse racing festival and the South American Copa American
football tournament.

During the four month period the Group has expanded into new regions and is in
the process of introducing several new products, including poker. Early
indications are encouraging. The Board looks forward to seeing the benefits of
the increased scale and product range of the business as we approach the
traditionally busy sports betting season.

Sportingbet will announce its results for the sixteen months ended 31 July 2004
on Tuesday 19 October 2004 following completion of the audit.

For further information please contact:

Sportingbet Plc
Nigel Payne, Chief Executive Tel: [phone]

Smithfield (media) Tel: [phone]
George Hudson Tel: [phone]

IR Focus (analysts/investors)
Neville Harris Tel: [phone]

The information contained herein is not for publication or distribution to
persons in the United States of America. The securities referred to herein have
not been and will not be registered under the US Securities Act 1933, as
amended, and may not be offered or sold without registration thereunder or
pursuant to an available exemption therefrom.



This information is provided by RNS
The company news service from the London Stock Exchange

[aleman] 28/7/2004 10:21

Good update from a CRP customer:

ukbetting PLC
28 July 2004

28 July 2004



ukbetting plc

Period end trading update


ukbetting plc reports that trading for the six months ended 30 June 2004 has
continued well and the group remains on track to reach EBITDA profitability for
2004.

The gaming division has achieved a gross win margin of 9%, and new customer
registrations have grown at an average of just under 5000 per month. Poker and
casino products have grown strongly, especially since the re-launch of the
ukbetting site, which also includes virtual racing and a range of skill-based
games. Totalbet.com will be re-launched in the second half of the year.
Goldbet, the European bookmaker acquired at the end of last year is showing
encouraging signs of growth.

The content division continues to trade profitably. The integration of
Rivals.net, Football365.com and Oddschecker.com is progressing well and they
have already proved to be valuable additions to the division. User numbers are
increasing steadily, and are now over the 6 million mark. Advertising revenue
has been strong for the half year to 30 June 2004, continuing last year's
significant growth trend.

-ends-


For more information, contact:


ukbetting plc 020 7766 6909
Peter Dubens, Vice Chairman


Financial Dynamics 020 7831 3113
Edward Bridges / Juliet Clarke



Notes to Editors

ukbetting plc (AIM: UKB.L) is the UK's leading online gaming and sports content
operator. Listing on the Alternative Investment Market in August 2001,
ukbetting has since pursued an active acquisitive strategy and now owns and
operates ten sports content sites (sportinglife.com, sportal.com,
bettingzone.co.uk and TEAMtalk.com,
www.rivals.net,

www.football365.com,

www.planetrugby.com,

www.planetf1.com,

www.golf365.com
and
www.cricket365.com
)
and three wagering sites (ukbetting.com, totalbet.com and goldbet.com). Through
these sites it is possible to find in-depth information, and place fixed-odds
bets, on a variety of sports including horse racing, football, cricket, rugby,
tennis, as well as poker, casino and skills based games.




This information is provided by RNS
The company news service from the London Stock Exchange

[aleman] 27/7/2004 23:09

Results out next week then. Even inspired two adventurous souls to buy today. Two in one day! Phew.

CryptoLogic Inc.
27 July 2004

Symbol: TSX: CRY; NASDAQ: CRYP; LSE: CRP



ADVISORY

CRYPTOLOGIC TO HOLD ANALYST/SHAREHOLDER CONFERENCE CALL

To discuss its 2004 second quarter results



July 27, 2004 (London, UK) - CryptoLogic Inc. announced today that on the
morning of Friday, August 6, 2004 (before the market opens in Canada), the
company will release its financial results for the second quarter ended June 30,
2004.



Lewis Rose, President and CEO of CryptoLogic, cordially invites you to
participate in the company's analyst/shareholder conference call to be held on
August 6, 2004 at 1:30 p.m. (UK time). A live webcast of the call will also be
available. Management will review the financial results for the 2004 second
quarter and discuss recent developments, to be followed by a question and answer
period.



Conference Call
Date: Friday, August 6, 2004
Time: 1:30 p.m. UK Time
Toronto Dial-In Number: 416-695-5259
Toll Free International: 00 800-4222-8835 (from UK)



To participate in the call, please dial 416-695-5259 or 800-4222-8835 five to
ten minutes prior to the 1:30 p.m. start of the teleconference. This conference
call will be recorded and available for replay approximately one hour after the
completion of the call, up until midnight (Toronto Time) August 13, 2004. To
listen to the replay, please dial 416-695-5275. A transcript of the call will
also be made available on CryptoLogic's website at
www.cryptologic.com
under
Investor Information.



Webcast

To access the live audio webcast, please go to
www.cryptologic.com
and click on
Investor Information, or

=855800 prior to 1:30 p.m. Windows Media Player is required to listen to the
webcast. If you do not have the player, a free download is available at

www.microsoft.com
. A rebroadcast of the webcast will be available on

www.Q1234.com
and
www.newswire.ca/webcast/
under Archives for 30 days.



About CryptoLogic (
www.cryptologic.com
)

Focused on integrity and innovation, CryptoLogic Inc. is the largest public
online gaming software company serving the global Internet gaming market. The
company's proprietary technologies enable secure, high-speed financial
transactions over the Internet, and its leadership in regulatory compliance
makes it one of the very few companies with gaming software that is certified to
strict standards similar to land-based gaming. WagerLogic Ltd., a wholly-owned
subsidiary of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers worldwide. For information, visit

www.wagerlogic.com
.



For information, contact:
At CryptoLogic, [phone] At Financial Dynamics, 020 7831 3113
Nancy Chan-Palmateer Juliet Clarke
[e-mail] [e-mail]



This information is provided by RNS
The company news service from the London Stock Exchange

[aleman] 18/7/2004 21:42

Cryptologic

Most serious gamblers now use online gaming portals to bet on the roulette wheel or the blackjack table, rather than a traditional casino. One of the companies which is benefiting from this boom is Cryptologic. It provides software products used to create virtual casinos, poker rooms and bingo halls.

Cryptologic, which is listed in London and on Nasdaq, has seen it share price rise from 550p in October to 825p on Friday. In May, the group reported an impressive 70 per cent rise in first quarter revenues and doubling of earnings. Analysts at Bridgewell, the stockbroker, recently put a fair value on the shares 1,040p. Buy.

[aleman] 18/7/2004 13:58

Mail online Sunday Tips roundup has Telegraph as saying:

Software provider Cryptologic is benefiting from a trend amongst gamblers to bet online rather than at traditional casinos. The company provides software used to create virtual casinos, poker rooms and bingo halls and is a buy at 825p.

[aleman] 12/7/2004 15:53

Dropped through rising support. Techs not doing well stateside and dollar weakening again. :-( Only 40% U.S. though and falling. Take out the £3 cash per share and effective p/e is around 11-12. Low for such rapid growth.

[aleman] 01/7/2004 13:35

Rising nicely within its rising channel again. Lots of good publicity on boom in internet poker recently.

[aleman] 22/6/2004 10:20

Not sure how long it's been there, but if you click on world tab in index at top of page and type TSE:CRY in box at top left of next page you get Toronto quote and price graph.

[lard arse] 17/6/2004 10:18

Sorry to be a pain.. Only dealt in UK equities in last 5 years. Who can I use to purchase Canadian stock?

[aleman] 16/6/2004 21:45

Thanks 350, that looks very useful.

[aleman] 12/6/2004 22:49

Internet betting still looking strong and online poker booming. Largest betting player sportingbet just hit new high for couple of years. CRP should follow on soon.

[aleman] 27/5/2004 23:35

350 - is there a way to pull up US and Canadian trades?

[350gtr] 27/5/2004 21:19

If you are worried about the spread take a look at buying on the Canadian market. This share is hardly traded in london but there it is much more liquid in Canada.

[350gtr] 27/5/2004 19:46

Aleman,

Bought some today.

This seems to be a great opportunity hidding away on the Canadian market.

Not much down side risk as they have $5.67 US dollars cash per share (£76 million in the bank), $ 0.28US earnings per share for the last qtr, no debt.
A much stronger financial position than most companies of this type

Up-side looks great they have exposure to increase poker revenue from loads of key players like William Hill, Ritz Club, Betfair etc.

current price looks low to me.

Any thoughts ?

DYOR etc etc

[aleman] 20/5/2004 17:13

CryptoLogic Inc.
20 May 2004

FOR IMMEDIATE RELEASE

ALL DOLLAR AMOUNTS IN US$

Symbol: TSX: CRY; NASDAQ: CRYP; LSE: CRP







MAJOR SHAREHOLDER INCREASES HOLDINGS IN CRYPTOLOGIC



May 20, 2004 (London, UK) - CryptoLogic Inc., a leading software developer for
the Internet gaming and e-commerce industries, announced that on May 14, 2004 it
received notification from Royce & Associates, a US investment fund, that the
fund has increased its holdings in CryptoLogic to 1,539,558 shares or
approximately 12% of current shares outstanding, which shares were purchased on
the open market.



'We are pleased that a major investor has expressed confidence in CryptoLogic's
growth strategy by increasing its shareholdings in our company,' said Lewis
Rose, CryptoLogic's President and CEO.





About CryptoLogic (

)

Focused on integrity and innovation, CryptoLogic Inc. is the largest public
online gaming software company serving the global Internet gaming market. The
company's proprietary technologies enable secure, high-speed financial
transactions over the Internet, and its leadership in regulatory compliance
makes it one of the very few companies with gaming software that is certified to
strict standards similar to land-based gaming. WagerLogic Ltd., a wholly-owned
subsidiary of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers worldwide. For more information on
WagerLogic, visit

.



CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY),
the Nasdaq National Market (symbol: CRYP) and the Main Market of the London
Stock Exchange (symbol: CRP).



For more information, please contact:


CryptoLogic, [phone] Financial Dynamics, + 44 20 7831 3113(UK media)
Nancy Chan-Palmateer, Director of Communications Juliet Clarke, [e-mail]
Jim Ryan, Chief Financial Officer Edward Bridges, [e-mail]
Argyle Rowland, [phone] (North American media)
Daniel Tisch, ext. 223/ [e-mail]
Melissa Chang, ext. 239/ [e-mail]



CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without limitation, risks
associated with the Company's financial condition and prospects, legal risks
associated with Internet gaming and risks of governmental legislation and
regulation, risks associated with market acceptance and technological changes,
risks associated with dependence on licensees and key licensees, risks relating
to international operations, risks associated with competition and other risks
detailed in the Company's filings with securities regulatory authorities. These
risks may cause results to differ materially from those projected in the
forward-looking statements.


This information is provided by RNS
The company news service from the London Stock Exchange

[aleman] 14/5/2004 16:39

Price down a bit sharp today, depite decent buy near end. Anybody know how to track Nasdaq and TSX trades?

[aleman] 11/5/2004 17:48

UKbetting today posted turnover for 2003 up 39%. Another example of CRP's strong market.

[aleman] 10/5/2004 17:48

CryptoLogic Inc.
10 May 2004

NEWS FOR IMMEDIATE RELEASE

Symbol: TSX: CRY; NASDAQ: CRYP; LSE: CRP



ALL FINANCIAL FIGURES ARE IN US$



CRYPTOLOGIC DELIVERS RECORD REVENUE & EXCELLENT EARNINGS GROWTH IN Q1



May 10, 2004 (London, UK) - CryptoLogic Inc., a leading software developer to
the global Internet gaming market, announced today its financial results for the
first quarter ended March 31, 2004, which is typically one of the strongest
seasons of the year for online gaming. Record revenue and strong earnings were
driven by robust growth in both the company's core casino business and new
product offerings, coupled with increasing contribution from international
markets.



'CryptoLogic's strong start to the year affirms the disciplined execution of our
strategy and has translated into record revenue and excellent earnings,' said
Lewis Rose, CryptoLogic's President and CEO. 'In the first quarter, we
continued to diversify our products, markets and customers. These results show
the benefits of investing in our business, people and resources to strengthen
CryptoLogic's leadership in a highly competitive marketplace and to capitalize
on the rapidly expanding online poker industry.'


Financial Highlights Three months ended

(in millions of US dollars, except per share data) March 31,
2004 2003(1)
Revenue $15.2 $8.9
Earnings $3.8 $1.8
Earnings per diluted share $0.28 $0.15

(1) Restated for the retroactive adoption of the stock option expense.



Fiscal 2004 first quarter highlights included:



• First quarter earnings grew 116% to $3.8 million or $0.28 per diluted
share over the same period in 2003 and ahead of analysts' average consensus of
$0.22 per diluted share;



• Continued momentum in online poker fees, which alone rose to 12% of
overall revenue. The company released a new version of its poker software to
drive further growth in this significant growth segment;



• Successfully launched prominent UK customer, The Ritz Club London
Online, in Alderney - a world-leading regulated market - highlighting
CryptoLogic's premier status as one of the world's few software providers with
government-certified software;



• Geographic diversification continued to be reflected in licensees'
revenue from international markets, which rose to approximately 60%, up from
over 55% in fiscal 2003. The company's global presence was enhanced with the
signing of its newest licensee, Betfair, the world's largest online betting
exchange; and



• Subsequent to quarter-end, announced the launch of a new poker site
for major UK licensee - Ritz Club London Online utilizing CryptoLogic-developed
online poker technology.





Strong First Quarter Performance (All financial figures are expressed in US
dollars)

Revenue and earnings momentum continued in the first quarter ended March 31,
2004, typically one of the strongest seasons of the year for Internet gaming.
Revenue rose 71% to $15.2 million, compared with $8.9 million in last year's
first quarter. EBITDA(2) for the quarter more than doubled to $4.6 million,
compared with $2.0 million in Q1 2003. Despite increased costs associated with
investing in the growth of the company's business, EBITDA(2) margin for the
quarter increased to 30% as a percentage of revenue, up from 23% last year.
Earnings for the quarter rose significantly to $3.8 million ($0.28 per diluted
share), compared with $1.8 million ($0.15 per diluted share) last year.



The contribution of new customers, higher player deposits, new casino game
introductions and licensees' marketing initiatives added to a strong first
quarter. Fees from online poker further augmented performance, along with
increasing international market penetration. The first quarter also included a
one-time insurance recovery of $0.4 million ($0.03 per diluted share).



Balance Sheet Strength

The cash generative nature of CryptoLogic's business continued to be reflected
in its strong balance sheet. At March 31, 2004, the company had no debt, and
total cash grew to $76.0 million or $5.67 per diluted share (comprising cash and
cash equivalents, short term investments, and including security deposits of
$7.0 million). CryptoLogic's working capital rose to $52.4 million or $3.91 per
diluted share.



CryptoLogic's financial strength enabled a positive return to shareholders
through a quarterly dividend of $0.03 per share paid on March 15, 2004. On May
6, CryptoLogic's Board declared the next quarterly dividend of $0.03 per share,
payable on June 15, 2004 to shareholders of record as at June 8, 2004.



Operating cash flow for the first quarter of 2004 was $5.1 million, compared
with $7.6 million in 2003. This decline was largely due to a significant
decrease in security deposit requirements in 2003 and a reduction in licensee
payables related to a licensee assuming its own e-cash.



Global Market Expansion

CryptoLogic's focus on a targeted group of high-quality international licensees
continues to pay off. As a result, revenue generated from licensees'
international players approximated 60% of first quarter revenue, up from over
55% in fiscal 2003. In particular, the UK and other European markets now
account for approximately 30% and 20% respectively of overall revenue.



CryptoLogic's global strategy was reinforced with the recent signing of its
newest online licensee, Betfair - a premier UK brand and the world's largest
betting exchange - which has licensed online poker software from CryptoLogic's
subsidiary, WagerLogic. Betfair's entry into player-to-player online poker
promises exciting synergies with its core person-to-person betting exchange
business.



Product Diversification

Internet poker continues to enjoy exceptional popularity around the world, and
has grown almost ten-fold in the past year. With an estimated annual run rate
approaching US$1 billion in global revenue according to PokerPulse, an
independent research group, which tracks the online poker market, there is still
considerable room for growth.



CryptoLogic continued to experience progressive momentum in fees from its poker
offering, which alone have risen to 12% of the company's total revenue.
Subsequent to quarter-end, the launch of a new poker site for The Ritz Club
London Online - a prestigious UK operator and an online casino licensee of
WagerLogic since 2002- increased to seven the number of international gaming
brands utilizing WagerLogic's online poker solution.



Regulatory Commitment

The UK is making good progress toward establishing itself as the world centre
for regulated online gaming, with a goal to enact legislation by 2005. A Joint
Scrutiny Committee recently completed its pre-parliamentary review of the
proposed Gambling Bill. The committee has urged the UK government to introduce
the Bill in the current session and begin preparing for the licensing of remote
gambling.



CryptoLogic's premier status and experience as one of the world's few software
suppliers with government-approved gaming software enabled the Ritz Club London
to migrate its online casino to the well-regulated jurisdiction of Alderney.
CryptoLogic's commitment to adhering to regulatory practices with the same
stringency as in land-based gaming will enhance its credibility and
marketability in a regulated UK market.



Outlook

Through CryptoLogic's focused strategy and investments in its business, growth
momentum has continued in 2004. The second quarter is traditionally solid
although not as strong as the first quarter due to early summer seasonality.
Accordingly, Management forecasts second quarter revenue to range from
$14.0-$14.5 million, with earnings of $2.8-$3.0 million or $0.20-$0.22 per
diluted share.



Even with record revenues, a strong cash position and cash flow, Management is
still mindful of ongoing regulatory uncertainty in the US and the reductions in
margins from the impact of competition and from increased expenditures. To
drive the long term growth of the business and position the company to be an
industry leader in the growth areas of online gaming, CryptoLogic is making
major strategic investments, which are expected to reduce margins in subsequent
quarters this year. These investments will enhance the company's poker product,
increase system scalability, and enhance the company's gaming software,
infrastructure and back-office systems.



CryptoLogic continues to execute on its disciplined strategy of international
expansion through new product introductions and diversification, and remains
committed to enhancing its industry-leading status and to driving long term
sustainable growth for its shareholders.



2004 First Quarter Analyst Call

A conference call is scheduled for 8:30 a.m. (EST) (1:30 p.m. GMT) on Monday,
May 10, 2004. Interested parties should call either 416-695-5261,
1-877-888-7019 (North America) or international toll free number at (Country
Code) 800-4222-8835. Instant replay will be available until Friday, May 28,
2004 by calling 416-695-5275 or 1-866-518-1010.



Annual & Special Meeting of Shareholders

CryptoLogic's Annual and Special Meeting of Shareholders will be held at The
Design Exchange, Trading Floor, 234 Bay Street, Toronto, Ontario, Canada, on
Tuesday, May 11, 2004 at 4:30 p.m., Eastern time.





About CryptoLogic (
www.cryptologic.com
)

Focused on integrity and innovation, CryptoLogic Inc. is the largest public
online gaming software company serving the global Internet gaming market. The
company's proprietary technologies enable secure, high-speed financial
transactions over the Internet, and its leadership in regulatory compliance
makes it one of the very few companies with gaming software that is certified to
strict standards similar to land-based gaming. WagerLogic Ltd., a wholly-owned
subsidiary of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers worldwide. For more information on
WagerLogic, visit
www.wagerlogic.com
.



CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY),
on the Nasdaq National Market (symbol: CRYP), and on the London Stock Exchange
(symbol: CRP).



For more information, please contact:


CryptoLogic, [phone] Financial Dynamics, + 44 20 7831 3113(UK media)

Nancy Chan-Palmateer, Director of Communications Juliet Clarke, [e-mail]
Jim Ryan, Chief Financial Officer Edward Bridges, [e-mail]
Argyle Rowland, [phone] (North American media)
Daniel Tisch, ext. 223/ [e-mail]
Melissa Chang, ext. 239/ [e-mail]


(2) Management believes that EBITDA (earnings before interest, taxes,
depreciation and amortization) is a useful supplemental measure of performance.
However, EBITDA is not a recognized earnings measure under generally accepted
accounting principles (GAAP) and does not have a standardized meaning.
Therefore, EBITDA may not be comparable to similar measures presented by other
companies.



CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without limitation, risks
associated with the Company's financial condition and prospects, legal risks
associated with Internet gaming and risks of governmental legislation and
regulation, risks associated with market acceptance and technological changes,
risks associated with dependence on licensees and key licensees, risks relating
to international operations, risks associated with competition and other risks
detailed in the Company's filings with securities regulatory authorities. These
risks may cause results to differ materially from those projected in the
forward-looking statements.



CRYPTOLOGIC INC.

CONSOLIDATED BALANCE SHEETS

(In thousands of US dollars)


As at As at

March 31, December 31,

2004 2003

(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $29,298 $44,010
Security deposits 7,000 6,550
Short term investments 39,734 16,747
Accounts receivable and other 2,207 2,389
Prepaid expenses 960 1,163
79,199 70,859

User funds on deposit 9,983 9,394
Capital assets 4,285 3,915
Intangible assets 181 122
Goodwill 1,776 1,776
$95,424 $86,066

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities $24,818 $25,063
Income taxes payable 1,967 1,063
26,785 26,126

User funds held on deposit 9,983 9,394

36,768 35,520

Shareholders' equity:
Capital stock 15,964 11,350
Stock options 497 438
Retained earnings 42,195 38,758
58,656 50,546
$95,424 $86,066







CRYPTOLOGIC INC.

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS

(In thousands of US dollars)

(Unaudited)


For the three months

ended March 31,
2004 2003


Retained earnings, beginning of period $38,758 $30,376
Earnings 3,821 1,773
Dividends paid (384) --
Retained earnings, end of period $42,195 $32,149







CRYPTOLOGIC INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands of US dollars, except per share information)

(Unaudited)


For the three months

ended March 31,
2004 2003


Revenue $15,224 $8,901
Expenses
Operating costs 9,014 5,642
General and administrative 1,506 1,120
Finance 92 107
Amortization 424 246
11,036 7,115

Income from operations 4,188 1,786
Interest income 244 161

Earnings before income taxes 4,432 1,947
Income taxes 611 174

Earnings $3,821 $1,773

Earnings per share
Basic $0.30 $0.15
Diluted $0.28 $0.15

Weighted average number of shares ('000s)
Basic 12,641 12,206
Diluted 13,419 12,216







CRYPTOLOGIC INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of US dollars)

(Unaudited)


For the three months

ended March 31,
2004 2003
Cash provided by (used in):

Operating activities:
Earnings $3,821 $1,773
Adjustments to reconcile earnings to

cash provided by (used in) operating activities:
Amortization 424 246
Gain on sale of investment -- (31)
Stock options 263 58
Changes in operating assets and liabilities:
Security deposits (450) 2,400
Accounts receivable and other 182 872
Prepaid expenses 203 82
Income taxes 904 100
Accounts payable and accrued liabilities (245) 2,082
5,102 7,582

Financing activities:
Issue of capital stock 4,410 --
Dividends paid (384) --
4,026 --

Investing activities:
Purchase of capital assets, net of disposals (764) (74)
Purchase of intangible assets (89) --
Short term investments (22,987) 10,857
Sale of investment -- 711
(23,840) 11,494
Increase (decrease) in cash and cash equivalents (14,712) 19,076
Cash and cash equivalents, beginning of period 44,010 13,660
Cash and cash equivalents, end of period $29,298 $32,736











NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As at March 31, 2004

(All figures are in thousands of US dollars, except per share disclosure and
where otherwise indicated)

(Unaudited)



These consolidated interim financial statements of CryptoLogic Inc. (the '
Company') have been prepared in accordance with Canadian generally accepted
accounting principles using the same accounting policies as were used for the
consolidated financial statements for the year ended December 31, 2003. These
consolidated interim financial statements should be read in conjunction with the
audited consolidated financial statements for the year ended December 31, 2003,
as set out in the 2003 Annual Report.



1. Stock Option Plan



In accordance with the guidelines of the Canadian Institute of Chartered
Accountants, the Company has expensed the costs of all stock option grants
issued on or after January 1, 2003. The fair value of the options granted in
2003 and 2004 was made using the Black-Scholes option pricing model under the
following weighted assumptions:


2004 2003

Dividend yield 0.75% 0.75%
Risk-free rate 2.75% 2.75%
Expected volatility 50.0% 50.0%
Expected life of options in years 5.0 5.0



The estimated fair value of options is recorded over the vesting period of the
options. Included in operating costs for Q1 2004 and 2003 is the cost of stock
options of $263 and $58 respectively. Consideration paid by employees on the
exercise of stock options is credited to share capital.



The impact of expensing stock options on earnings is as follows:


Three months ended Three months ended

March 31, 2004 March 31, 2003
('000) ('000)

Stock options expense $263 $58

Stock options expense (per share):
Basic $0.02 $0.00
Diluted $0.02 $0.00



For the year ended December 31, 2002, no compensation cost was recorded on the
grant of stock options during that year. In accordance with the transitional
provisions of the accounting guideline, additional pro forma disclosure is
presented as if the fair value method of accounting had been used to account for
stock options. The fair value of the options granted was made using the
Black-Scholes option pricing model under the following weighted assumptions:


2002

Dividend yield --
Risk-free rate 2.0%
Expected volatility 100.0%
Expected life of options in years 5.0



Had compensation expense been determined based on the fair value of the employee
stock option awards for 2002 grants at the grant dates in accordance with the
new recommendations, the Company's earnings and earnings per share would have
been changed to the following pro forma amounts:


Three months ended Three months ended

March 31, 2004 March 31, 2003
As reported Pro forma As reported Pro forma
('000) ('000) ('000) ('000)

Earnings $3,821 $3,637 $1,773 $1,589

Earnings per share:
Basic $0.30 $0.29 $0.15 $0.13
Diluted $0.28 $0.27 $0.15 $0.13





2. Capital Stock



Authorized:

Unlimited common shares



Issued and Outstanding:
Common Shares Series F Warrants Total
Issued Stated Value Issued Stated Value Stated Value
('000) ('000) ('000)

Balance, December 31, 2002 12,206 $10,448 30 $272 $10,720
Exercise of stock options 94 630 -- -- 630
Balance, December 31, 2003 12,300 $11,078 30 $272 $11,350

Balance, December 31, 2003 12,300 $11,078 30 $272 $11,350
Exercise of stock options 546 4,614 -- -- 4,614
Balance, March 31, 2004 12,846 $15,692 30 $272 $15,964





3. Comparative Figures



Certain of the prior years' figures have been reclassified for consistency with
the current presentation, and restated for the retroactive adoption of the stock
option expense.


This information is provided by RNS
The company news service from the London Stock Exchange