« Home | Apple Computer Inc In Options Trouble » | Imperial Sugar Beats Earnings by $.38 » | DXP Enterprises Bounces Big » | China Technology Development Looks Ready for Rise » | Rackable Ends Up on The Liquidation Rack » | Bye Bye Baidu » | Are you a CEO? You may need a face lift » | What does Eliot Spitzer Have In Common with Ben Ed... » | Would you run Windows on a Mac? » | Another Use for Craigs List »

August 04, 2006

Cryptologic's Cryptic Quarter (Nasdaq CRYP)

posted by MR WAVETHEORY at 8/04/2006 08:42:00 PM
Based in Toronto, Ontario, Cryptologic (CRYP) provides software that powers Internet poker sites like Betfair. Recently, the company announced earnings that came out at $.59 vs $.49 estimate or roughly $.10 ahead. The top line was $30.4 million and as the company put it, "well ahead of the company's estimate of $26.4 to $26.7 million."

However, the guidance was notably weaker for the current quarter which seems very odd:

"For Q3 2006, CryptoLogic forecasts revenue of $26.5-$27.0 million and earnings of $6.6-$7.0 million, or $0.48-$0.51 per diluted share. These estimates reflect the fact that Q3 is typically the softest quarter for Internet gaming, as players spend less time online during summer months. Also, licensees' poker room activity may decline between July 28 and August 10 when serious players are focused on the main event of the game's premier land-based tournament, the World Series of Poker."

One often wonders how this little earnings beating quarter could be followed by such a notably weaker follow-on act. It is quite clear why when the careful reader digs deeper into the press release:

"The increases in both Q2 2006 and year-to-date results over the comparable periods of 2005 are primarily attributable to revenue from our exit agreement with Betfair, higher revenue from our marketing support services, and increased advertising revenue associated with our gaming information portal."

Betfair is a significant customer of Cryptologic and Betfair will be leaving fairly soon:

"As announced in August 2005, Betfair, a poker software licensee, is expected to leave the central poker room before January 2007. We are awaiting notice of their ultimate departure date. WagerLogic is receiving fees from Betfair such that CryptoLogic's annual results for 2006 are not expected to be adversely affected."

From what I gather, Betfair appears to have made a fairly substantial payment to Cryptologic - shall we say "breakup fee" to terminate the relationship. Cryptologic does not mention the amount, but judging from the weak guidance for this upcoming quarter, I surmise the entire upside for the current quarter was due to the Betfair bounty. I doubt this shot in the arm will do much for Cryptologic.

As with unhappy marriages, it seems like one (aka Betfair) can always buy ourselves out of an unhappy arrangement.

Mr Wave Theory

Previous Posts

6 Comments:

Blogger Microsoft Office 2007 said...

Microsoft Office 2010
Office 2010
Office 2007
Microsoft Office
Microsoft Office 2007
Office 2007 key
Office 2007 download
Office 2007 Professional
Windows 7
Microsoft outlook 2010

6:17 PM  
Blogger ninest123 Ninest said...

ninest123 12.23
nike free pas cher, hogan outlet, nike trainers, north face, hollister, mulberry, vans pas cher, air jordan, nike blazer, vanessa bruno, louboutin, nike air force, polo lacoste, air max, timberland, abercrombie and fitch, true religion jeans, michael kors outlet, sac longchamp pas cher, polo ralph lauren, longchamp, true religion jeans, nike tn, lululemon outlet online, nike roshe run pas cher, michael kors pas cher, oakley pas cher, nike free, michael kors uk, air max pas cher, true religion outlet, sac hermes, ray ban sunglasses, hollister, ralph lauren, ray ban pas cher, coach purses, michael kors, true religion outlet, air max, nike roshe, new balance pas cher, north face, sac guess, sac burberry, coach outlet store online, converse pas cher, replica handbags, nike air max, nike huaraches

12:23 AM  
Blogger ninest123 Ninest said...

louis vuitton, air max, ray ban sunglasses, oakley sunglasses, burberry outlet, uggs, cheap uggs, michael kors outlet, christian louboutin, tiffany and co, prada outlet, louis vuitton outlet stores, ray ban sunglasses, cheap oakley sunglasses, longchamp handbags, uggs outlet, tiffany and co, nike shoes, tory burch outlet, ray ban sunglasses, longchamp handbags, oakley sunglasses, polo ralph lauren outlet, michael kors outlet, michael kors outlet online sale, chanel handbags, michael kors outlet, louis vuitton handbags, air max, louboutin outlet, burberry outlet, oakley sunglasses cheap, ugg outlet, louboutin, michael kors outlet, prada handbags, louis vuitton outlet, polo ralph lauren, nike free, replica watches, ugg boots clearance, michael kors outlet, louboutin shoes, jordan shoes, rolex watches, oakley sunglasses, louis vuitton outlet, gucci outlet, longchamp outlet

12:26 AM  
Blogger ninest123 Ninest said...

converse, mcm handbags, reebok outlet, bottega veneta, p90x, chi flat iron, hollister clothing store, ray ban, jimmy choo outlet, lululemon outlet, nfl jerseys, iphone 6s cases, soccer jerseys, wedding dresses, louboutin, babyliss pro, beats by dre, north face outlet, ferragamo shoes, gucci, abercrombie, instyler, iphone 6s plus cases, asics running shoes, celine handbags, abercrombie and fitch, iphone 5s cases, ghd, vans, valentino shoes, air max, oakley, ipad cases, giuseppe zanotti, new balance shoes, herve leger, timberland boots, air max, baseball bats, iphone 6 cases, birkin bag, s6 case, ralph lauren, nike roshe run, north face jackets, insanity workout, iphone cases, mont blanc, iphone 6 plus cases, vans shoes, soccer shoes, mac cosmetics

12:28 AM  
Blogger ninest123 Ninest said...

wedding dresses, moncler, ugg, louis vuitton, ugg, moncler, canada goose jackets, canada goose uk, supra shoes, pandora jewelry, swarovski, ugg pas cher, sac louis vuitton, swarovski crystal, canada goose, barbour, ugg, converse shoes, toms shoes, louis vuitton uk, sac louis vuitton, sac lancel, links of london, juicy couture outlet, canada goose, rolex watches, hollister, pandora jewelry, canada goose, thomas sabo, canada goose outlet, moncler, moncler, barbour, pandora charms, montre homme, doke gabbana, louis vuitton, canada goose, ugg boots, moncler outlet, moncler, pandora charms, moncler, juicy couture, karen millen, marc jacobs, moncler, canada goose, coach outlet store online
ninest123 12.23

12:30 AM  
Blogger Teman Poker said...

Agen Bola Online
Agen Judi SBOBET

6:18 AM  

Post a Comment

Links to this post:

Create a Link

<< Home