TransGaming Reports Record Financial Results in Fiscal 2011
Annual Revenues Increase 30% to More Than $5 Million
TORONTO, ONTARIO, Sep 01, 2011 (MARKETWIRE via COMTEX) -- TransGaming Inc. (TSX VENTURE: TNG) ("TransGaming" or the "Company") today reported its fourth quarter and fiscal 2011 results and sent notice of its Annual General Meeting of Shareholders, to be held September 28, 2011. The Company's audited consolidated financial statements for the year ended May 31, 2011, 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
-- Revenue was $5.1 million for the year ended May 31, 2011, an increase of
30%, driven by record revenue of $1.9 million in the fourth quarter.
-- Licensing revenue grew most significantly - up 45% over the year to $3.6
million, principally due to new Mac-enabled releases and increased back-
end revenue from a growing portfolio of Mac-enabled titles.
-- Due to growth in licensing revenue, gross margin for fiscal year was
75%, an improvement from 66% last year.
-- On April 26, 2011, TransGaming commercially launched GameTree TV, the
Company's premier on-demand interactive entertainment platform for Smart
TV with France's pioneering top-tier broadband service operator, Free.
-- The Company made a significant investment in growing its digital home
business unit and commercially launching GameTree TV.
-- The Company exited the fourth quarter with cash of $4.3 million and
working capital of $5.5 million.
Commenting on the results, Mr.Vikas Gupta, Chief Executive Officer and President of TransGaming stated, "I am extremely pleased to report these record results. While investing heavily in our newest product, GameTree TV, TransGaming achieved a 30% increase in revenues over the previous fiscal year with top-line revenue of $5.1 million and Q4 revenue of $1.9 million, our best fiscal year and quarter, respectively, to-date.
Mr. Gupta continued, "In addition to attaining record financial results, we commercially launched GameTree TV, the premier on-demand interactive entertainment platform for Smart TV, with our first managed service operator (MSO), Free. A subsidiary of The Iliad Group, Free is one of the largest internet protocol TV service providers in Europe with a rapidly expanding base of over 4.7 million broadband subscribers as of August 2011. I cannot underscore this achievement enough, as we have deployed a world-class, highly sophisticated, on-demand interactive entertainment platform a mere 15-months from its initial inception. As we continue to build a strong relationship with Free, we are also actively negotiating relationships with prospective MSOs and original equipment manufacturers."
Mr. Gupta concluded, "Fiscal 2011 was a year of much progress, many successes, and the forging of a path that will define our future. Over the coming months and quarters, we expect to make further inroads that will demonstrate how TransGaming is moving forward towards achieving a dominant leadership position in servicing the connected living room. I believe we are at the dawn in the battle for control of the living room and TransGaming has established an impressive early lead."
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