First quarter fiscal 2016 revenue was $0.5 million versus $0.7 million in the prior year quarter. Net income for the quarter was $3.2 million, which includes the impact of favourable foreign exchange gains and the gain on the disposal of the Company's cross-platform portability technology. The adjusted EBITDA loss for the quarter was $0.4 million compared $0.9 million for the same period last year. Overall, the first quarter of 2016 was a transformative period as the Company divested of a major business unit and meaningfully improved its financial position:
-- Sold its cross-platform portability technology to NVIDIA for $3.75 million -- Repaid in full CA$1.8 million in outstanding principal and interest owing to BEST Funds with the proceeds from the NVIDIA transaction -- Launched its subscription-based cloud gaming service, GameTree TV GOLD, with various Smart TV partners beginning in early SeptemberCommenting on the results, Dennis Ensing, CEO of TransGaming stated:
"In Q1 we finished laying the foundation for the revenue growth priorities we established for fiscal 2016. These priorities were fourfold -- to realize the potential from our Smart TV network through our new billing capability, continue launches of GameTree TV GOLD for Smart TV, establish third party relationships to gain access to additional MSOs, and extend our existing MSO relationships to accelerate the growth of GameTree TV subscribers. The plan we developed and executed from in 2015 has produced tremendous results so far -- first to stabilize and strengthen the company financially, and now to capitalize on our leadership position and further penetrate significant segments within the fast-growing cloud gaming market. Our singular focus is to build growing scalable revenue from these initiatives."
TransGaming also announced today that, effective October 26, 2015, Mr. Brice Scheschuk was appointed the Chair of the Company's board of directors. Mr. Scheschuk has served on the Company's board for over two years and his current and past board and advisory positions include WIND Mobile, Globalive Communications, Pragmatic Solutions and many others. Mr. Scheschuk replaces Mr. Leo Lax, who very actively served as Chair of TransGaming's board for the past five years. Mr. Lax resigned his position as Chair due to personal reasons and will no longer serve on the board.
Conference Call Details
TransGaming will host an analyst and investor conference call at 10:00 a.m. EST on Thursday October 29, 2015 to review the first quarter fiscal 2016 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: www.transgaming.com/investor-relations/
About TransGaming Inc.
TransGaming delivers fun, high-quality games and apps direct to TVs everywhere. Pioneers in connected TV entertainment with over 15 years in the industry, TransGaming is dedicated to bringing great content and innovative services to the living rooms of TV consumers worldwide. GameTree TV, its highly successful on-demand cloud gaming service, is available to play on over 100 million connected TV's. This easily deployable, high quality cloud offering has led to strong ongoing partnerships with every major brand of TV manufacturer, as well as multiple international Pay TV providers. All of TransGaming's content is built from the ground up specifically for the TV platform, bringing, with its partners, the best possible experience to TV consumers. Headquartered in Toronto, with offices in Tel Aviv and Kiev, TransGaming is a public company listed on the TSX Venture Exchange. Discover more at www.transgaming.com.
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.
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Contacts: TransGaming Inc. Ankit Patel Vice President of Finance +1 416 979-9900 x336 email@example.com www.transgaming.com