TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

April 26, 2012 08:00 ET

TransGaming Reports Fiscal Year 2012 Third Quarter Results and Files Business Acquisition Report

TORONTO, ONTARIO--(Marketwire - April 26, 2012) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") today reported its third quarter fiscal year 2012 results. The Company's unaudited interim consolidated financial statements for the three and nine months ended February 29, 2012 and Management's Discussion and Analysis have been filed and are available on SEDAR at www.sedar.com.

The Company also announced that it has filed its Business Acquisition Report ("BAR") related to the acquisition of the Interactive TV and Connected TV ("iTV") division of Oberon Media, Inc., closed January 6, 2012.

Highlights

  • Revenue for the first nine months of fiscal year 2012 was US $3.8 million, up over 21% over the same period last year.
  • For the three months ended February 29, 2012 revenue was nearly US $1.5 million, an increase of 49% from the same period in the previous year and 11% higher sequentially from the previous quarter.
  • The Company's pro forma consolidated revenue for the year ended May 31, 2011 as reported in the BAR was $10.1 million.
  • The Company had in aggregate over 285,000 monthly active users interact with its distribution properties during February 2012 generating a monthly average revenue per user of $0.97.
  • Since announcing the acquisition of the assets of the Oberon Media iTV Division, the Company has integrated this division into its operations. The iTV division has already or is expected to:
    • generate more than $4.0 million of annual revenue with operating margins (EBITDA) of 40% before non-cash expenses;
    • deliver GameTree™ TV branded content to important service providers DISH Network and DIRECTV based in North America as well as Reliance Digital TV and AirTel Digital TV in the Indo-Pacific region thereby increasing the GameTree TV total addressable market to over 50 million households;
  • The Company announced an agreement with IPTV solution provider Select-TV to introduce GameTree TV to the hospitality industry as well as service providers based in the Indo-Pacific region. As part of the agreement, GameTree TV will be available to 50,000 connected suites and state rooms as well as 6 new service providers with the first series of installations expected to launch by June 2012.
  • At the International Consumer Electronics Show ("CES") in January 2012 the Company announced it would support set-top boxes based on the MIPS® architecture from MIPS Technologies. MIPS Technologies is the leading provider of industry-standard processor architectures and cores for the global set-top box market, with its processors shipping in more than 75% of set-top boxes worldwide.
  • The Company also showcased GameTree TV's new multi-screen capabilities at CES. Android and iOS devices can now be seamlessly integrated into the GameTree TV experience. Consumers can now enjoy a fully integrated gameplay experience that employs both the television screen and the handheld device simultaneously. The multi-screen feature promotes multi-player, interactive gameplay and leverages current consumer behavior in the living room whereby consumers are in possession of their handheld or tablet device as they consume TV content.

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

"This quarter was a transformative period for TransGaming with exceptionally high levels of activity as we continue to work aggressively to forge our dominance in the emerging Smart TV space. During the third quarter of fiscal year 2012, we strengthened our position in the Smart TV market through the acquisition of the Oberon iTV division; we expanded the GameTree TV platform to include support for MIPS Technologies which gives TransGaming access to 75% of the set-top boxes deployed worldwide; we announced a new distribution agreement with Select-TV thereby extending the GameTree TV platform into the Asian market, specifically the hospitality sector as well as mid-tier operators. This activity, coupled with the continuing success of our Mac business, is delivering a foundation of sustained growth with tremendous upside potential."

Mr. Gupta added: "We are building GameTree TV to be the world's most robust, scalable, and comprehensive video games distribution platform for Smart TV. The addition of multi-screen support makes GameTree TV a truly unique and complete platform that leverages current consumer behaviour in the living room and takes advantage of the booming popularity of mobile devices. All these initiatives feed into our main objective of driving active user growth."

Conference Call Details

TransGaming will host an analyst and investor conference call at 1:00 p.m. ET on Thursday April 26, 2012 to review the third quarter fiscal 2012 results and Business Acquisition Report relating to its acquisition of the Interactive TV and Connected TV division of Oberon Media, Inc. The telephone number for the conference call is (416) 340-9432. 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 TV set-top boxes, Mac computers, and Linux/CE platforms. TransGaming is headquartered in Toronto, Canada. To learn more about TransGaming visit 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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