Cryptologic Q4 net earnings up 153 pct, sees continuing growth in 2008
March 18, 2008: 04:04 AM EST
, Mar. 18, 2008 (Thomson Financial delivered by Newstex) -- Cryptologic (NASDAQ:CRYP) Ltd reported a 153 pct rise in fourth-quarter net earnings, ahead of its guidance and market forecasts, and said it expects continued growth in 2008.
The internet gaming software developer reported net earnings of 4.3 mln usd compared with 1.7 mln usd year ago while revenues rose to 20.4 mln usd from 19 mln usd.
However, the company said its full-year net earnings fell to 5.5 mln usd from 24.8 mln usd as revenues declined 29 pct to 73.7 mln usd.
The company said its fourth-quarter casino revenue rose 40 pct to 14 mln usd while poker revenue fell 31 pct to 4.6 mln usd.
Cryptologic said it expects its recent investments and acquisitions to be earnings accretive in 2008 and that it continues to pursue opportunities.
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CryptoLogic expects to benefit from various new initiatives this spring and summer. These include the release of non-download poker for all customers; the launch of the new World Poker Tour casino; a fresh release of casino games; and new software development for Betsafe, Sun Poker and World Poker Tour's German- and Spanish-language products. The company also has a healthy pipeline of potential new licensees.
According to the call, the one time write off of 1.75 million is a one-time event, so this basically offsets the $2M in release of reserves. The net effect seems to be that CRYP really did beat by about 15 cents.
No matter how you slice it, CRYP is dirt cheap.
Another thought: They suggested that revs were driven by the release of Spiderman and other games in DECEMBER. If these games had any lasting effect, then Q1 should be phenomenal.
Another thought: They intimated that they couldn't buy shares for the past 75 days, but that they talk about buying them all the time. You think maybe we get some repurchases or even some insider buying. I would think so.