10-05-2007 CryptoLogic investing in the future

The leading software developer said that despite revenues in the first quarter were down 27 per cent to $19.6 million and the profit margin was 9.7% compared to 32.1% in Q1 2006, it expects 2007 to be a year of growth in both Europe, where CryptoLogic acquired Scandinavian poker operator Parbet and signed an exclusive agreement with the Netherlands' government-owned Holland Casino, and Asia, where it signed joint ventures with local operators to target the Chinese market.

"At CryptoLogic, the first quarter was about investing in the future, and charting a course for global growth," said Javaid Aziz, CryptoLogic's new President and CEO. "We've launched five new customer sites since December, and have seven more in the queue - including two for Holland Casino, and two for World Poker Tour. With our largest customers on long-term agreements, and modest revenue expected this year from our Asian venture, CryptoLogic is poised for long-term growth in the European markets of today - and the Asian markets of tomorrow."

For Q2 2007, CryptoLogic estimates to break-even on revenue of $15.5-$16.5 million. "This represents an additional quarter of investment in new licensee relationships to build for future earnings growth," the company said in a statement.