DNA Dynamics Issues Comprehensive Operational Update
LEAMINGTON SPA, England, Nov. 9, 2011 /PRNewswire/ – Ed Blincoe, Chairman, President and CEO of DNA Dynamics, Inc. (Pink Sheets: DNAD), a global developer and publisher of mobile video games and applications, today issued a formal corporate update relating to the status of DNA’s prevailing growth initiatives, the ongoing execution of the Company’s business plan, and insight into key goals and objectives for the coming year.
Blincoe stated, “2011 has proven to be a pivotal year for DNA Dynamics, marked by a number of mission critical initiatives that we’ve implemented to capitalize on the explosive global growth occurring in the mobile and online games markets.
“From a competitive point of view, many of the major publishing companies in the traditional video games industry have moved too slowly to effectively adapt to the rapid evolution of operating systems and hardware. What’s more, not many of them anticipated that casual gaming – not enthusiast gaming – would become the fastest growing mass medium in history and create a $3 billion industry seemingly overnight. This has led to a myriad of new game developers and publishers vying to take the lead in this high growth arena – and DNA Dynamics is chief among them.
Constructing a High Growth Platform
“We began the year as a mobile game publisher, operating a single subsidiary known then as Appache Mobile. However, in order to seriously contend for industry leadership, we knew we would need to expand our operating platform to provide for the integration of game development. In April, we accomplished this goal through our acquisition of Slam Productions, one of the most highly regarded game development studios in the world led by award-winning, industry icon Paul Ranson.
“Now serving as DNA’s Chief Gaming Officer and as a member of our Board of Directors, Paul’s extraordinary resume, long list of accomplishments and sphere of influence are being fully leveraged to help DNA optimize our game development priorities and to clarify our future growth strategies. He has fast proven to be an excellent complement to our executive leadership team and enthusiastically shares David Lovatt’s and my vision for the Company. I should add that as our COO and director and as a serial entrepreneur, David’s expertise and hands-on direction in building the framework for a multi-dimensional technology company has been invaluable to DNA over the past year. I feel very privileged to have assembled such a dynamic senior management team, all of whom are equally dedicated to the same fundamental values and guiding principles.
“In addition to amazing talent and a valuable back catalogue of game properties, the acquisition of Slam delivered DNA a notable competitive advantage in the form of the Slam Engine, a proprietary Rapid Application Development (RAD) tool designed and engineered by Paul and his team.
“To fully appreciate its impact on our business moving forward, it is important to understand that the Slam Engine replaces costly and time-consuming hand-design and coding processes, which are dependent upon the skills of isolated individuals with automated design and coding capabilities. As a consequence, our studio is able to develop games and apps in mere months, instead of years, and at a fraction of the cost associated with conventional means. In addition, the Slam Engine provides DNA with a scalable, flexible alternative to employing a multi-platform programming team – absolutely no specialist skill is required to port between platforms. In fact, our system code can even be developed without access to the target platform, as the game or app can be completely coded on a PC.
“Make no mistake; the Slam Engine will play a significant role in the future growth of DNA Dynamics in a number of meaningful ways:
- First, the Slam Engine empowers us with material cost savings in our development business, which in turn leads to the production of higher margin games while greatly enhancing ROI and mitigating economic risks historically associated with development of proprietary game brands.
- Next, the Slam Engine gives us the ability to rapidly expand our distribution channels across multiple mobile and online gaming platforms on the publishing side, which in turn enables us to reach a much broader demographically-diverse audience of casual gamers and hard core enthusiasts while penetrating new markets.
- And, finally, the Slam Engine may present DNA with an entirely new business opportunity that could result in a significant new revenue stream for our Company. To that end, we are currently weighing the proverbial pros and cons of licensing the Slam Engine to other game development shops or keeping it exclusively for our own development use. The fact of the matter is that several commercial RAD tools have come to market over the past couple of years, but few, in our opinion, can measure up to the Slam Engine‘s vibrant and highly advanced capabilities. Consequently, this is a potential growth opportunity that we will be carefully evaluating in the coming year.
“In June, we proceeded with implementing a comprehensive rebranding strategy to provide for a cohesive identity for DNA Dynamics and our two operating subsidiaries – Appache Mobile and Slam Productions, since renamed DNA Interactive and DNA Studios, respectively. Having recently unveiled our exciting new image, it is our belief that our Company’s equitable brand voice now works to maintain consistency across our operational platform and better aligns our messaging with our collective business-building interests.
Building a Winning Team
“With both essential core competencies – development and publishing – in place and our new corporate brand officially launched, we turned our attention to expanding our support teams.
“Building on our existing base of talent, we promoted Craig Weeks to Development Director at DNA Studios. As the Slam Engine‘s chief intellectual developer and with more than 13 years of industry experience, we are truly fortunate to have Craig as a part of our development team. Likewise, Terry Goodwin was promoted to Senior Programmer at DNA Studios, where he has proven to be a true asset to our programming team.
“Earlier this fall, DNA scored big when George Bray agreed to join us as Director of Business Development at DNA Interactive. With more than two decades experience in the video games industry, George – a sought after industry speaker and deal rainmaker – brings DNA extensive knowledge of the international marketplace, as well as a passion and proven knack for forging partnerships with true titans in the interactive entertainment realm. We are thrilled to have George onboard and will be looking to him to help our proprietary game properties reach, engage, enchant and entertain players worldwide.
“We were also very pleased to welcome Rishika Sharma to DNA as Marketing Specialist. In addition to spearheading trade media relations, she is responsible for driving awareness of DNA and our games
through the use of social marketing campaigns, game reviews, blogging and advertising – all vital components of the Company’s marketing platform. Along with Rishika, Junior Programmers Andrew O’Malley and Alistair Campbell and Junior Artists Christopher Reeves and Heather Sheppard were also hired to round out our fantastic creative team at DNA Studios.
“The determination of our talented colleagues to do what it takes to distinguish DNA as an industry respected games developer and publisher is proving to be one of our Company’s greatest strengths. It is this determination that has unleashed our creativity and innovation, is fueling our ambition, and is rapidly winning DNA praise and positive reviews for our chart-topping games from peers, partners, players and leading trade publications, alike.
DNA’s Game Line-Up and Release Schedule
“Our growth strategy to date has been centered largely on selectively developing game titles based on licensed properties and on publishing externally developed titles. In this regard, DNA has enjoyed considerable success over the past several months, striking deals with major and emerging entertainment companies to develop and/or assist in bringing to market a series of new, visually stunning and highly experiential mobile and online games, including:
- Los Angeles-based start-up Gamecentric Media, which is led by a team of game industry veterans who have worked on some of the most successful game franchises of all times
- DNA acquired the license to The Naked Gun (Paramount movie franchise) and is developing a mobile game, titled The Naked Gun: ICUP, for the iPhone, iPad and Android smartphone and tablet
- The game will feature episodic content for paid-for downloads with the first release expected in late Q411 or early Q112
- Freemantlemedia, one of the world’s largest and most accomplished creators, producers and distributors of outstanding entertainment brands; responsible for many of the world’s highest rated prime time entertainment, drama, serial drama and factual entertainment, including American Idol, The X-Factor and the Got Talent franchise, among numerous others
- DNA acquired the license to Merlin (popular television show currently airing in 183 countries) from FreemantleMedia Enterprises and is developing a mobile game for the iPhone, iPad, Android smartphone and tablet, and MacÃ‚®
- The game will feature episodic content for paid-for downloads with the first release due in Q112
- Kiz Studios, a children’s social entertainment brand and video game developer
- DNA was engaged by Kiz to develop the mobile game titled “Crystal Cleaner” for iPhone, iPad, and Android smartphone and tablet platforms
- Due for release in Q411
- Will be available through freemium/in-app purchase
- Playpen Studios, owner of the Skillz, the DJ Game IP
- DNA was engaged by Playpen to develop Skillz, the DJ Game for mobile gaming platforms
- Released this past Fall to raving critical reviews
- Urban Mammoth Ltd., producers of Urban War, a popular fast-paced, sci-fi “skirmish” tabletop game for two or more players
- DNA acquired the license to Warheads: Medieval Tales to develop a mobile game for the iPhone, iPad, Android phone and tablet, and Mac
- Release is expected in Q112 and will be available through freemium/in-app purchase
“Though our current business model relies heavily on third party IP and franchise content, DNA’s longer term view of growth and expansion is concentrated on developing and publishing premium quality mobile and online interactive entertainment and successful franchises that are proprietary to us. At the present time, our active IP portfolio includes proprietary game titles which include Jigsawium, Legacy: Mystery Mansion, Chess Crusades, Sudokium and Margots Word Brain.
Termination of Pending Acquisition and Recent Corporate Restructuring
“In August, DNA Dynamics announced that we were pursuing the acquisition of a social/MMO (Massively Multiplayer Online) gaming company in a proposed stock-only transaction which involved the escrowing of 30 million shares of restricted common stock. Recently, several factors dictated that we withdraw from this negotiation and re-evaluate our near term acquisition strategies. As a result, the 30 million shares will be returned to DNA from escrow and we will retire them to our corporate treasury.
“Our decision to forego this acquisition opportunity does not mean that we have vacated our plans to grow through future acquisitions. On the contrary, we view mergers and acquisitions as a very attractive means to expedite our growth, and we have several candidate companies and brand franchises under consideration.
“As a means to simplify our reporting obligations in all territories and to conform to all local tax and corporate law requirements, last month we formed a new wholly-owned subsidiary of DNA Dynamics, named Helical Games Limited, to which we transferred ownership of both DNA Studios and DNA Interactive. This corporate restructuring affords DNA several advantages, including enabling us to bring in potential investors to fund future acquisitions without diluting existing shareholders of our public parent company. In addition, it also empowers us with an ability to offer former owners of businesses we may acquire an equity stake in that business, but only that business.
Key Goals and Objectives in 2012
“By building on our successes, addressing our shortfalls and implementing our new business development strategies with forethought and purpose, we are confident in our ability to accelerate DNA’s growth and win enduring leadership in the mobile and online games industry. To that end, we have identified several key goals and objectives for the coming year that will further strengthen our platform and significantly enhance DNA’s overall value proposition. They include:
- Successfully launching our pipeline of games currently slated for release in Q411 and Q112; and backfilling our pipeline with proprietary and/or acquired brands and game titles for development and release in each quarter that follows;
- Expanding our worldwide games distribution network through strategic partnerships;
- Achieving consistent quarter-over-quarter revenue growth; and posting positive cash flow from operations in or before Q212 and sustainable net profitability prior to the end of 2012;
- Completing the audits of our historical operations, filing an S-1 Registration Statement with the U.S. Securities and Exchange Commission, and up-listing to the OTCQB or Nasdaq’s new BX Venture Market;
- Expanding our Board of Directors to provide for enhanced corporate governance and greater independence and transparency; and
- Formally engaging an investment banker to assist our management team with assessing and implementing capital formation strategies that best serve the interest of the Company and our valued shareholders.
“We have worked diligently over the past year to create, innovate and deliver ‘must-play’ mobile and online games that both casual and serious gamers enjoy playing again and again. Further, we are committed to nurturing a culture rooted in transparency, innovation and scale; and we are implementing growth strategies that will allow us to continue scaling our business by attracting amazingly talented people who are inspired to think outside of the box and establish entirely new standards of excellence in games development and publishing.
“In closing, I’d like to give my thanks to DNA’s shareholders. We recognize that through your investment in our Company, you are expressing confidence in our ability to execute our plan and to build DNA into a world class interactive entertainment company. You can rest assured knowing that we take this responsibility to heart and intend to be relentless in our efforts to deliver. DNA may be a young company, but we are led by a team of seasoned veterans who know this business and know what it takes to win,” concluded Blincoe.
About DNA Dynamics, Inc.
Headquartered in Leamington Spa in the United Kingdom, DNA Dynamics is a worldwide developer and publisher of graphically rich, highly experiential interactive entertainment currently delivered on iOSÃ‚®, Android(TM), Nintendo DS(TM) and Sony PSPÃ‚® platforms. Through its operating subsidiaries, DNA Studios and DNA Interactive, the Company has created, acquired or licensed a portfolio of highly recognizable or emerging brands that broadly appeal to its consumer demographics, ranging from children to adults and casual gamers to serious enthusiasts. For more information, please go to www.dnadpk.com. You can also follow the Company on Facebook and Twitter.
This press release may contain forward-looking statements, including information about management’s view of DNA Dynamics, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of DNA Dynamics, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on DNA Dynamics’ future results. The forward-looking statements included in this press release are made only as of the date hereof. DNA Dynamics cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, DNA Dynamics undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by DNA Dynamics.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Elite Financial Communications Group, LLC
Dodi Handy, President and CEO (Twitter: dodihandy)
For Media: Kathy Addison, COO (Twitter: kathyaddison)
(407) 585-1080 or via email at DNAD@efcg.net
SOURCE DNA Dynamics, Inc.