Crytologic (CRYP) Conference Call - 3rd Qtr Results - 11/3

[Sniper]

TORONTO--(BUSINESS WIRE)--Oct. 19, 2005-- CryptoLogic Inc. (TSX:CRY - News; NASDAQ:CRYP - News; LSE:CRP - News) announced today that on the morning of Thursday, November 3, 2005 before the market opens, the company will release its financial results for the third quarter ended September 30, 2005.
Lewis Rose, President and CEO of CryptoLogic, cordially invites you to participate in the company's analyst/shareholder conference call to be held on November 3, 2005 at 8:30 a.m. (Toronto time). A live webcast of the call will also be available. Management will review the financial results for the 2005 third quarter and discuss recent developments, to be followed by a question and answer period.

Conference Call
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Date: Thursday, November 3, 2005
Time: 8:30 a.m. Toronto Time
Local Dial-In Number: 416-695-6120
Toll Free North America: 1-877-888-3855
Toll Free International: (Country Code) 800-4222-8835


To participate in the call, please dial 416-695-6120, 1-877-888-3855 or 800-4222-8835 five to ten minutes prior to the 8:30 a.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 November 10, 2005. To listen to the replay, please dial 416-695-5275 or 1-866-518-1010. A transcript of the call will also be made available on CryptoLogic's website at www.cryptologic.com (http://www.cryptologic.com) under Investor Information.

Webcast

To access the live audio webcast, please go to www.cryptologic.com (http://www.cryptologic.com) and click on Investor Information, or www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1274900 (http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1274900) prior to 8:30 a.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. (http://www.microsoft.com.) A rebroadcast of the webcast will be available on www.Q1234.com (http://www.Q1234.com) and www.newswire.ca/webcast/ (http://www.newswire.ca/webcast/) under Archives for 30 days.

[Sniper]

Just another reminder about CRYP earnings release this week!

[TGoldman]

I'll be listening and will share my thoughts afterwards.

[Sniper]

TORONTO--(BUSINESS WIRE)--Nov. 1, 2005-- CryptoLogic Inc. (TSX:CRY - News; NASDAQ:CRYP - News; LSE:CRP - News), a leading software developer to the global Internet gaming market, announced today that its Board of Directors has approved a 40% increase in its quarterly cash dividend to US$0.07 per common share (an annual rate of US$0.28), up from US$0.05 per common share. The US$0.07 per share quarterly dividend will commence with the company's next dividend payable on December 15, 2005 to shareholders of record as at December 8, 2005. The ex-dividend date will be December 6, 2005.

[TGoldman]

This will make for an even more interesting conference call tomorrow morning. CRYP is sitting on a heavy pile of cash, and management apparently believes distributing their cash back to shareholders is a good use of the money. That's not the kind of action I would expect from a small-cap growth company. Could this be a move meant to brace their stock against a slowed/negative earnings growth report?

[Sniper]

What do you think CRYP should be doing with their cash?

Remember, they are basically a software company, taking a piece of the action... essentially they are rolling in money and couldn't possibly spend it all on expansion activities... returning some of the cash horde to their stockholders is better than it sitting in their bank account doing nothing.

[TGoldman]

True... Also CRYP already announced their intention to repurchase up to 10% of their shares on the open market. And rewarding investors through dividends is definitely better than a lavish executive reward package. It just seems strange when a supposed small-cap growth stock sees no growth to the point where it makes more sense to distribute its earnings. The management really can't figure out anything more profitable to do with it?

[Sniper]

Here's the link to the 2005 2Q Conf Call Transcript (http://www.cryptologic.com/investor/pdf/cc_2005_q2.pdf)
(Note: thats last quarter)

[Sniper]

Top online gaming company Betfair closed a deal it has been working on for months, when it reached an agreement to buy top online poker site Poker Champs, and their software company Aglet, it was announced late yesterday.

"We are delighted to have acquired a top class team of developers at Aglet and, in addition, a unique and popular poker platform," said Steve Ives, Director of Betfair Games. "The new team will be helping us develop both our own poker products and a unique, integrated games platform."

This was contrary to earlier reports, which had Betfair resigning for another year. Company officials were quoted as saying the Cryptologic resigning was done as late as last week.
"
The conclusion of Betfair's current poker software contract next year with CryptoLogic's licensing subsidiary, WagerLogic, will see Betfair's poker provision operated and developed in-house." Ives continued

The addition of the PokerChamps software, long thought to be the one of the most rock-solid in the business brings a stability, and a flexibility to Betfair's poker operation only possible with in house software.

Former PokerChamps Marketing Director, and top poker player Tony G had this to say about the sale "I believe Poker Champs has the best poker software in the world, and that is why I joined the company. With the muscle that a company the size of Betfair brings, and a tech team that I believe is unparalleled, I truly feel that PokerChamps will be the fastest growing poker portal in 2006"

Cryptologic's stock price remained largely unchanged on the announcement, but is still off its 52 week high by about 50%.

"Aglet is proud to bring to Betfair the knowledge and expertise used to build PokerChamps, one of the world's most advanced poker gaming systems," said Kevin Mikkelsen, Aglet's CEO. "As software developers we are thrilled to be part of a company that represents the finest in technology driven business and product development."

[Sniper]

CryptoLogic Delivers Record Revenue & Near Record Earnings In Q3 05 (http://biz.yahoo.com/bw/051103/35381.html?.v=1)

[Sniper]

CRYP trading up to 19.50 in premarket trading!!!

[TGoldman]

Wow! CRYP delivered an incredible earnings report today. Earnings were up big both on the casino and poker side. Surprisingly, casino revenue increased faster than poker revenue. Management continued to reiterate their belief that the current market valuations of their stock does not reflect the true value of the company. On the topic of their cash stockpile, management quoted Warren Buffett on the prudent use of the money. Along with established plan for an increased dividend and maximum share repurchasing, management also discussed the possibility of a special dividend as well as the profile for acquisitions of other software developers that specialize in skill games such as mahjong, chess, checkers, backgammon and developing mobile software platforms. Looking forward into 2006, William Hill and UKBetting contracts expire in 2006.

[James282]

[ QUOTE ]
CRYP trading up to 19.50 in premarket trading!!!

[/ QUOTE ]

What a pleasant surprise for a stock that had so far been a nightmare to own. This should give it some great momentum for the next quarter also. Go CRYP!
-James

[Sniper]

CRYP closed the day at 20.51 up 22%.

[TGoldman]

CRYP is off to the races again today. Yesterday CRYP closed at the day's high, up on massive volume. It's up another 6% in early trading today on similarly high volume.