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.