TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

October 29, 2014 16:00 ET

TransGaming Reports First Quarter Fiscal 2015 Results

TORONTO, ONTARIO--(Marketwired - Oct. 29, 2014) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") today reported its first quarter fiscal 2015 results. The Company's unaudited interim consolidated financial statements for the three months ending August 31, 2014 and Management's Discussion and Analysis have been filed and are available on SEDAR at www.sedar.com.

Highlights

The Company initiated a major repositioning of its Graphics and Portability Group in Q3 FY2014 which was completed this quarter, with respect to both technology development as well as the implementation of new business models. This new strategy is evidenced through the publishing of its first title, subsequent to quarter-end. Management is confident that Q1 represents the conclusion of the restructuring and subsequent quarters will reflect positive growth. First quarter fiscal 2015 revenue was $1.08 million. The net loss for the quarter was $1.48 million with adjusted EBITDA loss of $0.9 million. The Company expects revenue growth to commence in Q2 with profitability in the coming quarters as the pivot is completed. The following highlights during and subsequent to the first quarter of 2015 should be noted:

  • Launched GameTree TV on VIZIO, the number one Smart TV company in the US
  • Launched GameTree TV with Select-TV, a global entertainment leader in the hospitality industry
  • Made a principal repayment of CA$1.1 million to BEST Funds on the CA$3.5 million in outstanding debt lowering the total debt balance to CA$2.4 million
  • Changed repayment terms with BEST Funds with the debt now scheduled to be repaid in full by April 30, 2016
  • Reported cash and cash equivalents of $1.8 million
  • Subsequent to quarter-end, published its first major title 'Metal Gear Rising: Revengeance' on the Mac
  • Subsequent to quarter-end, announced a new partnership to bring GameTree TV content to a major European cable operator
  • Subsequent to quarter-end, launched second-screen and multiplayer capabilities with World Poker Tour on GameTree TV

Commenting on the results, Vikas Gupta, CEO & President of TransGaming stated:

"Our industry is changing and we are adapting with it. We have positioned TransGaming for accelerated growth and our restructuring this past year was a consciously architected plan to set the stage for an even brighter future. We have signed many strategic agreements, we are live on the majority of global TV brands, and our new business models are taking root. I believe we are in a strong position, strategically, technologically and financially, moving forward to deliver positive results."

Conference Call Details

TransGaming will host an analyst and investor conference call at 4:00 p.m. EST on Thursday October 30, 2014 to review the first quarter fiscal 2015 results. The telephone number for the conference call is +1 (416) 340-2216. 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) engineers technologies that ignite experiences, delighting audiences around the world. From its roots as a trailblazer in cross-platform enablement, TransGaming has expanded to deliver essential solutions fuelling software 3D graphics rendering, parallel computing, and the distribution of digital content. TransGaming's disruptive innovations are now used by everyone from home consumers, to the largest and most influential tech companies in the world. Visit us at http://www.transgaming.com.

FORWARD-LOOKING STATEMENTS

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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