Cryptologic Decrypts Sales: Fool by Numbers

On Nov. 3, online gaming software developer Cryptologic (Nasdaq: CRYP  ) released third-quarter earnings for the period ended Sept. 30.

• Sales increased by 32% because of solid organic growth in Internet poker and Internet casino fees.
• Cryptologic grew its cash hoard, and it remains debt-free.
• CEO Lewis Rose said the UIGEA will have a "significant short-term impact on future financial results."
• Hidden Gems selection Cryptologic has a four-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$27,690	$21,049	31.6%
Net Profit	$7,244	$5,127	41.3%
EPS	$0.53	$0.36	47.2%
Diluted Shares	13,789	14,063	(1.9%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	39.0%	39.2%	(0.2)
Operating Margin	23.6%	23.3%	0.3
Net Margin	26.2%	24.4%	1.8

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$127,748	$90,096	41.8%
Accounts Rec.	$9,078	$7,764	16.9%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$48,643	$32,612	49.2%
Long-Term Debt	$0	$0	N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q3 2006	Q3 2005	Change
Cash From Ops.	$5,666	$14,238	(60.2%)
Capital Expenditures	$2,061	$4,683	(56.0%)
Free Cash Flow	$3,605	$9,555	(62.3%)

Find out why Fools always follow the money.

Related Companies:

• WPT Enterprises (Nasdaq: WPTE  )
• MGM Mirage (NYSE: MGM  )
• Optimal Group (Nasdaq: OPMR  )
• GigaMedia (Nasdaq: GIGM  )

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• Gaming Stocks: Down, Not Out
• Doubling Down on Online Gaming Stocks

CryptoLogic is a Motley Fool Hidden Gems recommendation. Which stocks are making the list of potentially life-changing investments these days? Take a free 30-day trial and find out.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.