TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 -- TransGaming Inc. (TSX VENTURE: TNG) ("TransGaming" or the "Company") today reported its third quarter fiscal year 2013 results. The Company's unaudited interim consolidated financial statements for the three and nine months ended February 28, 2013 and Management's Discussion and Analysis have been filed and are available on SEDAR at www.sedar.com.
TransGaming's third quarter of fiscal 2013 was the second best quarter in the company's history. Highlights during and subsequent to the quarter include:
-- The Company streamlined its operating structure by completing an internal restructuring into two vertical business units late in calendar 2012: the Graphics & Portability Group, and the Digital Media Group. This restructuring, together with cost constraint measures has stabilized the company which is evident based on Q3 results.-- The Company generated over $2.0 million in revenue for the quarter, a growth of 37% over the same period one year ago. Year to date revenue grew to $5.5 million, an increase of $1.7 million (44%) from the first nine months of fiscal 2012.-- The adjusted EBITDA (loss before interest, taxes, amortization & stock based compensation) was within $100,000 of break-even, the lowest net operating burn in three years.-- For the month of February the results of operations were profitable. This target was achieved a full quarter ahead of management's objectives.-- The Digital Media Group accounted for 55% of this quarter's revenue (60% year to date) and contributed $2.0 million in gross margin to the business.-- As announced December 5, 2012, the Company launched and upgraded the GameTree TV platform with a major update to the client interface, enhanced functionality, and subscription-only business model.-- The GameTree TV update, with the new subscription-only revenue model, was deployed at Free, the Company's France-based service provider partner, in December.-- TransGaming has new key partnerships in place for GameTree TV with important industry influencers including Opera and Roku, with others being announced soon.-- Subsequent to quarter end, the Company announced a licensing agreement valued at US$1.0 million with a pioneering Fortune 1000 cloud services provider to enable select products to run on various System-on-Chipsets using TransGaming's core technology.-- The Company secured a milestone patent (US, Europe and Canada) for key proprietary technology that forms the core of SwiftShader, the world's fastest pure-software 3D graphics renderer.-- On April 23, 2013 the Company announced a strategic licensing agreement with Google for SwiftShader.-- Since the end of Q3, working capital has been improved materially. Q4 has historically enjoyed the fiscal year's best revenue, and management expects this particular Q4 will continue the trend.
Commenting on the results, Vikas Gupta, CEO & President of TransGaming stated:
"The last few quarters have been focused on major internal changes, restructuring, and cost constraining towards stabilizing the business. Q3 is evident of the positive impact of these measures. Having achieved the second strongest quarter within the company's history, being within $100,000 of break-even, and with the confidence that Q4 will be a historic record quarter, this period represents a crucial inflection point for TransGaming.
"We are further encouraged by the strength of a range of business milestones. Signing distribution agreements with Opera Software and Roku are important developments for our Digital Media Group. These and the numerous other distribution agreements that will be announced in the coming weeks and months, will drive revenue in the next fiscal year and scale the GameTree TV business. The Graphics & Portability Group has also seen tremendous growth and success with new licensing agreements with large game developers and publishers. The success of the technology licensing within this group is further underscored by the recent $1 million license with a Fortune 1000 corporation and the strategic agreement with Google for an expanded SwiftShader license.
"The culmination of our collective hard work is a company that has reached self-sustainability and is now poised for profitability. We believe we have turned the corner and our outlook for the future is positive."
Conference Call Details
TransGaming will host an analyst and investor conference call at 10:00 a.m. ET on Tuesday April 30, 2012 to review the third quarter fiscal 2013 results. The telephone number for the conference call is +1 (416) 695-6622. The call will be recorded and a digital replay will be available on the Company's Investor Relations portion of its website at: http://transgaming.com/investor-relations.
About TransGaming Inc.
TransGaming Inc. (TSX VENTURE: TNG) is the global leader in developing and delivering platform-defining social video game experiences to consumers around the world. From engineering essential technologies for the world's leading companies, to engaging audiences with truly immersive interactive experiences, TransGaming fuels disruptive innovation across the entire spectrum of consumer technology. TransGaming's core businesses span the digital distribution of games for Smart TVs, next-generation set-top boxes, and the connected living room, as well as technology licensing for cross-platform game enablement, software 3D graphics rendering, and parallel computing. Visit us at http://transgaming.com.
Certain statements in this document may constitute "forward-looking" statements, which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use words like "may", "will", "expect", "continue", "believe", "plan", "intend", "would", "could", "should", "anticipate" and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this document. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the "Risk Factors" section of the Company's the most recently filed Annual Information Form which is available on SEDAR at www.sedar.com.
Although the forward-looking statements contained in this document are based upon what we believe are reasonable assumptions, we cannot assure investors that our actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances, except as required by securities law.
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Chief Financial Officer
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