Longueuil, Québec, February 14, 2022 – D-BOX Technologies Inc. (“D-BOX” or the "Corporation") (TSX: DBO) a world leader in haptic and immersive experiences, today announced results for the third quarter of fiscal 2022 ended December 31, 2021. All dollar amounts are expressed in Canadian currency.
“We are pleased with the financial performance of our third quarter, as we continued to execute on sales opportunities and reached a positive EBITDA, a goal we have stated in the past. With revenue growth of 86% YoY, D-BOX demonstrated that its commercial entertainment is continuing its progression, particularly D‑BOX’s rights for use revenues which grew 812%. The recent performance of Spider-Man: No Way Home, demonstrates the theatrical experience remains the main contributor to the success of movie studios”, stated Mr. David Montpetit, CFO of D BOX Technologies. “This quarter was affected with supply chain disruption impacting our manufacturing costs, delays in shipment, as well as the global surging of Omicron cases. As a result, there are sales which could not be recognized this quarter. Fortunately, the demand remains strong, and we can count on the support of our customers and our employees to meet our objectives. Finally, we are pleased with our adequate cash position, allowing us to pursue our growth initiatives related to the home entertainment and is in line with our forecast.”
“We continue executing our strategic plan to grow our business and position D-BOX’s haptic at the heart of different key industries. As Mark Zuckerberg recently shared in his vision, in a Metaverse universe, the interaction and the involvement of the body will be at the center of human experiences. D-BOX has always had that vision and continues more than ever, to strategically position and connect its haptic platform with more and more seated devices and accessories: entertainment seats, simulators, racing rigs, platforms, gaming controllers, gloves and vests; in the future, haptic will be everywhere! We are also very pleased with the momentum pertaining to our gaming and sim racing initiatives! Recently, the Razer™ (Razer) Enki Pro gaming chair leveraging D-BOX’s haptic technology was showcased at the CES 2022 and gained tremendous attention during the event. We are very excited that a gaming accessory leader such as Razer, with over 150 million users has awed consumers around the planet with this concept gaming chair. Moreover, we are thrilled our partner Cooler Master will be starting to take orders in the first quarter of our fiscal year, for the Motion 1, the first haptic gaming chair which was unveiled last summer. The sim racing is not left out. We are continuing to reinforce our brand in North America by being an official sponsor of eNASCAR as we did in Europe with the FIA agreement”, mentioned Sébastien Mailhot, President and CEO of D-BOX Technologies.”
"We are delighted to welcome two new seasoned sales executives, based in the United States and coming with a strong background in entertainment and gaming with leading organizations such as Disney, Paramount, Electronic Arts and Nintendo. Moreover, as announced in December, Zrinka Dekic joined our Board of Directors. She will bring an invaluable experience from Goldman Sachs, Houlihan Lokey and Disney. Their leadership, industry experience and business relationship will be key to the success of the organization. Lastly, I would like to highlight that we made a strategic positioning in the haptic industry as D-BOX’s CTO, has been appointed as Chairman of the Board and President of the Haptics Industry Forum. We will be at the forefront of the industry with other participants to shape the future of haptic and defining the standards and guidelines for the haptic ecosystem”, added Mr. Mailhot.
The financial information relating to the third quarter ended December 31, 2021 should be read in conjunction with the Corporation’s audited consolidated financial statements and the Management’s Discussion and Analysis dated February 14, 2022. These documents are available at www.sedar.com.
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, share-based payments, foreign exchange loss (gain) and non-recurring expenses related to restructuring costs.
The following table reconciles adjusted EBITDA to net loss (amounts are in thousands of Canadian dollars):
D-BOX creates and redefines realistic, immersive entertainment experiences by moving the body and sparking the imagination through effects: motion, vibration and texture. 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, music, relaxation, virtual reality applications, themed entertainment or professional simulation, D-BOX creates a feeling of presence that makes life resonate like never before. D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit D-BOX.com.
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.
David Montpetit
Chief Financial Officer – D-BOX Technologies Inc.
450-999-3216
dmontpetit@d-box.com
Steve Li
Vice President Investor Relations and Corporate Strategy – D-BOX Technologies Inc.
450-912-2036
sli@d-box.com