TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

January 28, 2015 16:00 ET

TransGaming Reports Second Quarter Fiscal 2015 Results

TORONTO, ONTARIO--(Marketwired - Jan. 28, 2015) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") today reported its second quarter fiscal 2015 results. The Company's unaudited interim consolidated financial statements for the three and six months ending November 30, 2014 and Management's Discussion and Analysis have been filed and are available on SEDAR at www.sedar.com.

Highlights

Second quarter fiscal 2015 revenue was $1.3 million and $2.3 million for the six months ending November 30, 2014. The net loss for the quarter was $0.04 million with an adjusted EBITDA loss of $0.4 million. The following highlights during and subsequent to the second quarter of 2015 should be noted:

  • Reported revenue of $1.3 million during the quarter, up 32% from Q1
  • Entered into a strategic co-publishing partnership with a world leading MMO developer to bring a top 10, award-winning massively multiplayer online role-playing game (MMORPG) to the Mac
  • Published its first major title 'Metal Gear Rising: Revengeance' on the Mac
  • Launched its first title supporting in-game purchases on GameTree TV with Bulky Pix's "Turbolab Pursuit"
  • Announced a new partnership to bring GameTree TV content to a major European cable operator
  • Launched second-screen and multiplayer capabilities with World Poker Tour on GameTree TV
  • Subsequent to quarter-end, announced the monetization of GameTree TV across its Smart TV's globally in partnership with leading digital payments platform Paymentwall
  • Subsequent to quarter-end, announced a partnership with LG in conjunction with the Smart TV alliance, continuing the expansion of GameTree TV across the Smart TV market
  • Subsequent to quarter-end, announced the availability of GameTree TV to pay-TV operators worldwide in partnership with CloudTV software platform ActiveVideo

Commenting on the results, Dennis Ensing, Chief Operating Officer & Interim CEO of TransGaming stated:

"2014's restructuring of our key revenue models served as an excellent springboard to 2015. Our publishing pipeline is now set for the first 9 months into this year with as many as 15 titles to be released. And, as promised, 2015 has brought a new monetization of our global Smart TV cloud gaming footprint with a focus on building subscriptions across our service into a sustainable growing and recurring revenue stream.

"We are committed to attain profitability more quickly with a plan that has already been implemented to reduce annual operating expenses by more than $750,000. Finally we have also identified technology assets that are not central to these priorities and are pursuing opportunities to unlock the value of our investments in these assets to further enhance shareholder value. I am very pleased and excited to lead our team as we concentrate on these efforts."

Conference Call Details

TransGaming will host an analyst and investor conference call at 10:00 a.m. EST on Thursday January 29, 2015 to review the second 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/investors.

About TransGaming Inc.

TransGaming Inc. (TSX VENTURE:TNG) is a global leader in developing and delivering platform- defining social video game experiences to consumers around the world. From engineering essential technologies for world 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 publishing for cross-platform game enablement, and licensing software for 3D graphics rendering and parallel computing. 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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