LONGUEUIL, Quebec, Feb. 12, 2020 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (TSX: DBO), a world leader in immersive entertainment experiences, today announced third quarter results for the quarter ended December 31, 2019. All dollar amounts are expressed in Canadian currency and prepared in accordance with International Financial Reporting Standards (IFRS). 

FINANCIAL HIGHLIGHTS

Highlights for the third quarter ended December 31, 2019:

“D-BOX is currently facing a difficult fiscal year both in the theatrical and commercial entertainment markets. For the quarter and the first nine-month period, sales have decreased as a result of a slowdown in activities from certain partners facing internal and market challenges. However, we are cautiously optimistic that the trend is temporary and that sales will increase in upcoming quarters. At the recent International Association of Amusement Parks and Attractions (IAAPA) tradeshow, several partners launched new promising products that attracted a lot of attention. Moreover, the simulation and training segment is showing continued strength driven by attractive ROI and improvement of performance based on motion cues”, said Mr. Claude Mc Master, President and CEO of D-BOX. “Furthermore, it is management’s goal to move forward in the execution of strategic partnerships and shift the business to profitable growth. In addition, during the quarter D-BOX has focused on reducing its corporate costs”.

“In the last few years, D-BOX has invested significantly to improve its motion technology. For instance, we developed a new synchronization process to make it compatible with the streaming trend in the global entertainment market. D-BOX has also started to use artificial intelligence in its operations and the benefits from this effort should be reflected in the future”, mentioned Mr. Mc Master. “We strongly believe that we are on the right track to commercialize the motion technology in the consumer market through strategic partners which undeniably represents the biggest market opportunity in the years ahead.  We will also be working to ramp up our content library with established video game publishers and leverage the relationship between avid gamers and gaming peripheral manufacturers. The strategic partnerships in the video gaming ecosystem will be targeted on racing simulation, virtual reality, e-sports, gaming pod and home gaming”.

Highlights for the nine-month period ended December 31, 2019

Third quarter and Nine-month period ended December 31
(in thousands of dollars, except per share amounts)
 Third QuarterNine-month Period
2019 2018 2019 2018 
Revenues5,473 8,258 19,335 25,855 
Net loss(1,615)(177)(3,154)(1,154)
Adjusted EBITDA*279 515 608 1,795 
Basic and diluted net loss
per share		(0.008
)
(0.001
)		(0.017
)
(0.007
)
Information from the consolidated balance sheets
 As at
December 31, 2019		As at
March 31, 2019
Cash and cash equivalents5,392 9,635 
* See the “Non-IFRS” measures section in the Management’s Discussion and Analysis dated February 12, 2020

OPERATIONAL HIGHLIGHTS

ADDITIONAL INFORMATION REGARDING THE THIRD QUARTER ENDED DECEMBER 31, 2019

The financial information relating to the third quarter ended December 31, 2019 should be read in conjunction with the Corporation’s unaudited interim condensed consolidated financial statements and the Management’s Discussion and Analysis dated February 12, 2020. These documents are available at www.sedar.com.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)*

Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows provided by operations. It consists of net income (loss) excluding amortization, financial expenses net of income, income taxes, write-off of property and equipment and intangible assets, shared-based payments, foreign exchange loss (gain) and non-recurring expenses related to restructuring costs.

 Third Quarter
ended December 31		Nine-month Period
ended December 31
2019 2018 2019 2018 
Net Income (loss)(1,615)(177)(3,154)(1,154)
  Amortization of property and equipment535 402 1,391 1,512 
  Amortization of intangible assets202 197 664 602 
  Amortization of other assets1 — 3 2 
Write-offs of property and equipment— — 2 — 
  Financial expenses94 123 467 384 
  Income taxes— (31)(1)46 
  Share-based payments55 16 116 109 
  Restructuring costs1003 — 1003 — 
  Foreign exchange loss (gain)4 (15)117 294 
 Adjusted EBITDA279 515 608 1,795 
* See the “Non-IFRS” measures section in the Management’s Discussion and Analysis dated February 12, 2020.

ABOUT D-BOX

D-BOX redefines and creates realistic, immersive entertainment experiences by moving the body and sparking the imagination through motion. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it’s movies, video games, virtual reality applications, themed entertainment or professional simulation, creating a feeling of presence that makes life resonate like never before.
D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal, Canada with offices in Los Angeles, USA and Beijing, China.

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

Certain statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to place undue reliance on forward-looking statements. D-BOX disclaims any intent or obligation to publicly update these forward‑looking statements, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION, PLEASE CONTACT:

David Montpetit 
Chief Financial Officer
D-BOX Technologies Inc.
450-442-3003, ext. 296


Steve Li
Vice-President Investor Relations and 
Corporate Strategy
450-442-3003, ext. 403