CryptoLogic Sees Strong 2nd Quarter Results

TORONTO, Canada -- As reported by the Canadian Press: "CryptoLogic Inc. (TSX: CRY), a developer of gambling software for the global Internet casino and poker markets, reported a big jump in second
Cryptologic is a leading online gambling software manufacturer.  quarter profits as sales rose more than 50 per cent.

"The Toronto company said Thursday it earned $8.2 million US or 59 cents a share for the quarter ended June 30, up from profits of $4.7 million or 33 cents for the same period last year.

"The quarterly earnings at the company, which reports in U.S. dollars, surpassed analysts expectatons of 49 cents a share.

"Revenue jumped 52 per cent to $30.4 million US from $19.9 million.

"CryptoLogic said its better-than-expected performance was due to strong organic growth in online poker software fees and a particularly strong quarter in online casino software fees. That was driven by the release of new casino games and CryptoLogic's expanded high-margin slot software games.

"The company said it was pleased by its performance in the period because the spring quarter is usually a slow one for online gaming and because the company's licencees had to compete for players' attention with the World Cup in June and early July, particularly in Britain and continental Europe.

"'CryptoLogic's new casino games went head-to-head with the World Cup and warm weather-and won,' said Lewis Rose, CryptoLogic's president and CEO. 'Our Q2 revenue and earnings were far ahead of expectations and surpassed our results (for the first quarter), which is typically a stronger quarter.

"'Players have embraced our new games and industry commentators agree that we have taken the online slot experience to the next level. CryptoLogic's player-centric, product diversification and innovation strategy is paying off.'