PokerPulse Letters


Mail from ccraft, November 12, 2008

Q4 08 EPS + Segment Estimates - PRELIMINARY

Keep in mind these are what I consider to be the most accurate representation of potential earnings based on currently available information, which are subject to significant change based on updated information.


Q4 Estimate
EPS: ~$0.182
Rev: ~$54.54 million
Net Inc: ~$10.94 million


Segment Breakdown
EPS: ~$0.199
Rev: ~$39.84 million
Inc: ~$11.95 million

Casual Games
EPS: ~$0.064
Rev: ~$14.19 million
Inc: ~$3.83 million

M4$ - No Contribution Expected

EPS: ~$0.003
Rev: ~$514 k
Inc: ~$161 k

ES (Everest Sportsbook) - No Contribution Expected

~$5.25 million
EPS: ~$(0.088)

~$250 k
EPS: ~$0.004


FY 08 (excludes one-time gain & write-off)
EPS: ~$0.739


Prelim Q1 09
EPS: ~$0.197

Revised Prelim FY 09 Estimate
EPS: ~$0.822

All EPS numbers and calculations are based on a 60 million share full-dilution count, which is based on reported total outstanding shares. EPS numbers correspond to reported "GAAP Net Income Per Share, Diluted", and Net Income numbers correspond to "GAAP Net Income".

Gaming includes EP and EC. M4$, AGP, and ES results are provided separately. EP and EC models have been adjusted to include "Virtual Wallet", the WSOP sponsorship, and the games licensed from CRYP.

The AGP estimates include all associated games that are part of the package, such as Pachinko, Pachislo, Japanese Poker, and Mahjong, adjusted to match current selection.

Casual Games represents contributions from FunTown, T2CN, as well as any contributions from MMO's and other casual game or social network sites that GIGM operates (Xbox games currently excluded).

Any current or future ISP contribution is now included in NSI.

NSE = Non-Specified Expenses, which represents all expenses that are not necessarily directly attributable to any particular segment (i.e.
Administrative, Acquisition, Consolidation, Distribution, Marketing expenses, etc.).

NSI = Non-Specified Income. Like the NSE, but used to account for one-time gains, or other similar sources of income, including non-op income, that are not necessarily attributable to any given segment (i.e.
- license fees, investment gains, etc.).

2009 estimates include all known operations except Xbox games.

These estimates and targets are being provided without guarantee, and should be considered for general reference purposes only. Under NO circumstances should anyone base investment decisions on these estimates.

FWIW, these are JMHO.




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