TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

August 27, 2013 08:30 ET

TransGaming Reports Fourth Quarter and Fiscal 2013 Year End Results

TORONTO, ONTARIO--(Marketwired - Aug. 27, 2013) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") reported its fourth quarter and fiscal 2013 results and tomorrow will send notice of its Annual General Meeting of Shareholders, to be held September 23, 2013, at 4:00 p.m. at the St. Andrews Club & Conference Centre, Garden Room #2, 16th Floor, 150 King Street West, Toronto. The Company's audited consolidated financial statements for the year ended May 31, 2013, Management's Discussion and Analysis, and Annual Information Form, together with the Notice of Meeting and Information Circular have been filed and are available on SEDAR at www.sedar.com.

Highlights

  • Total revenue for the year was up 60% to $9.8 million, with annual gross margins of more than 78%.
  • The adjusted EBITDA loss (loss before interest, taxes, amortization & stock based compensation) for the year was $175,000.
  • The Company generated $4.4 million in revenue in the fourth quarter, a growth of 82% over the same period one year ago, with profit of $2.5 million.
  • The Company secured a milestone patent (US, Europe and Canada) for the key proprietary technology that forms the core of SwiftShader.
  • On April 23, 2013 the Company announced a strategic licensing agreement with Google for TransGaming's SwiftShader, the world's fastest pure-software 3D graphics renderer.
  • During fiscal 2013, the Company added the following distribution channels: AT&T uVerse (through a partner company), Opera Software, Roku®, and Panasonic, with other market leaders in discussion or negotiation.
  • The Company released its own title, World Poker Tour® on GameTree TV and, using its Cider translation technology, enabled some of this year's top titles including various The Sims™ 3 expansion packs, Max Payne™ 3, Disney's Planes and Guild Wars® 2.
  • Subsequent to year end the Company retired the US$2.8 million in liabilities to Oberon Media with a $1.1 million payment to a successor of Oberon, fully satisfying all current and future liabilities.
  • The Company also refinanced its debt with The Business, Engineering, Science & Technology Discoveries Fund and affiliated funds (BEST Funds) subsequent to year end. TransGaming received an aggregate of CA$3.5 million in new financing from BEST Funds and used the proceeds to both fully repay the CA$2.5 million outstanding in existing notes payable and fund the $1.1 million Oberon payment. The new promissory notes bear interest at 10% per annum for the first 36 months and mature July 5, 2018.

Commenting on the results, Mr. Vikas Gupta, Chief Executive Officer and President of TransGaming stated, "Our outstanding financial results for fiscal year 2013 speak for themselves. We took a decisive and systematic approach to the business and our positive results are reflective of the major transition we underwent and represent the renewal of TransGaming.

We addressed a number of important matters this year including: cost containment as part of our restructuring; the resolution of our financial obligation to Oberon Media, which resulted in a $1.7 million benefit to our balance sheet; the renegotiation of our BEST Funds debt to more favorable terms; and the realignment of our business units to create two divisional groups focused on our core revenue streams. In addition, we intently focused on key wins with major customers across all of our product lines, propelling our revenue increase. These measures have stabilized the company and positioned us well for further growth.

We are thrilled by our results and achievements over the past year. We continue to work tirelessly towards making our products and technologies more pervasive and we are confident that the future holds even greater victories."

Conference Call Details

TransGaming will hold a conference call at 11:00 a.m. ET on August 27, 2013 to review the fourth quarter and 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 Investor Relations page of the Company's 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.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable 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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