TORONTO, ONTARIO--(Marketwire - Oct. 30, 2012) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") today reported its first quarter fiscal year 2013 results. The Company's unaudited interim consolidated financial statements for the three months ended August 31, 2012 and Management's Discussion and Analysis have been filed and are available on SEDAR at www.sedar.com.
TransGaming's first quarter of fiscal 2013 was an exciting period with a strong start to the fiscal year. Highlights during and subsequent to the quarter include:
- The Company experienced year-over-year growth in revenue of 55% with total revenue of $1.55 million in the quarter driven by strong distribution revenues.
- Quarterly net cash outflow was reduced by $0.8 million from the same period the prior year due to a reduction in expenses.
- The Company announced it would commence trials with Select-TV in the Indo-Pacific region. This operator will initially introduce GameTree TV to 10,000 hotel suites in early November, with expansion to 50,000 suites and an audience of over a million guests in early calendar year 2013.
- The Company announced an agreement with another major IPTV service provider in Asia.
- TransGaming showcased GameTree TV at IBC2012 in Amsterdam in September. The Company's World Poker Tour® game with multi-screen gameplay was demonstrated which served as an outstanding glimpse of the capability of TransGaming's GameTree TV platform.
Commenting on the results, Vikas Gupta, CEO & President of TransGaming stated:
"Building on record revenues in FY2012, including Q4 being TransGaming's best quarter ever, we're extremely pleased with the strong start to FY2013. Within our first quarter we achieved multiple milestones including year-over-year revenue growth of 55%, with revenue of $1.55 million, driven by strong growth in both our licensing and distribution business segments. We believe this strong quarter sets the stage for what I expect to be a remarkable fiscal year. With the addition of multiple service providers in Asia, GameTree TV continues to dominate the fastest growing connected TV market in the world. But TransGaming is not only expanding our markets, we are also hard at work on "platform defining experiences" with exclusive games developed from the ground up for GameTree TV such as the World Poker Tour® game. Based on the incredible levels of excitement generated at IBC2012, we expect the game will be a runaway hit and that the momentum behind GameTree TV will continue."
Mr. Gupta added: "This was a quarter in which TransGaming continued to lay the foundations for future success, but also began to reap the rewards of our dedication to innovation. Looking forward, we will continue to position the company for absolute ubiquity, by dominating markets and defining consumer experiences."
In addition, the Company also announced today that it had applied to the TSX Venture Exchange to issue 750,000 bonus shares to Business, Engineering, Science & Technology Discoveries Fund and three affiliate funds ("Best Funds") in connection with its $3.5 million debt financing announced on January 6, 2012. The bonus shares are for an extension of certain renegotiated covenants through to February 2013. The Company is in compliance with its debt covenants and continues to repay the promissory notes on the original payment terms. The bonus shares are subject to the approval of the TSX Venture Exchange and when issued will be subject to a hold period of four months and one day pursuant to applicable securities laws.
Conference Call Details
TransGaming will host an analyst and investor conference call at 10:00 a.m. ET on Wednesday October 31, 2012 to review the first quarter fiscal 2013 results. The telephone number for the conference call is 416-695-6616. 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 the multiplatform deployment of interactive entertainment. TransGaming works with the industry's leading developers and publishers to enable and distribute games for Smart TVs, next-generation set-top boxes, Mac computers, and Linux/CE platforms. TransGaming is headquartered in Toronto, Canada.
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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