CryptoLogic on Tilt: Fool by Numbers

On Feb. 15, CryptoLogic (Nasdaq: CRYP  ) released fourth-quarter earnings for the period ended Dec. 31.

• Top and bottom lines tumbled, primarily because of the legislation effectively banning online gaming in the United States.
• The company launched several poker-related sites in Europe, including Playboy's (NYSE: PLA  ) .
• Cryptologic plans to bring on a new CEO after establishing a headquarters in Ireland in 2007.
• Motley Fool Hidden Gems recommendation Cryptologic carries a four-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$18,984	$25,061	(24.2%)
Net Profit	$1,712	$5,825	(70.6%)
EPS	$0.12	$0.43	(72.1%)
Diluted Shares	13,736	13,665	0.5%

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Operating Margin	14.6%	20.3%	(5.6)
Net Margin	9.0%	23.2%	(14.2)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$126,940	$97,634	30.0%
Accounts Rec.	$8,251	$8,629	(4.4%)

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$47,766	$37,495	27.4%
Long-Term Debt	$0	$0	N/A
User Funds on Deposit	$20,872	$25,953	(19.6%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q4 2006	Q4 2005	Change
Cash From Ops.	$5,269	$11,275	(53.3%)
Capital Expenditures	$4,613	($1,041)*	N/A
Free Cash Flow	$656	$12,316	(94.7%)

*Net capex is negative because of sales of capital assets.

Find out why Fools always follow the money.

Related Companies:

• World Poker Tour (Nasdaq: WPTE  )
• GigaMedia (Nasdaq: GIGM  )
• Progressive Gaming International (Nasdaq: PGIC  )

Related Foolishness:

• The Best International Stock for 2007: CryptoLogic
• Foolish Book Review: "Roll the Bones: The History of Gambling"
• Did Congress Kill Online Poker?
• Doubling Down on Online Gaming Stocks

CryptoLogic is a Hidden Gems pick. Take the newsletter for a 30-day free trial.

Playboy is a Rule Breakers recommendation.

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.