IRW-Press: Destiny Media Technologies, Inc. Announces Third Quarter Fiscal 2014 Results



Published on 15 July 2014


by Press Office

(IRW-PRESS and WireNews+Co)

Vienna, Austria


Destiny Media Technologies (TSXV: DSY) (OTCQX: DSNY), the makers of Play MPE, a system for the secure distribution of pre-release music to radio and the developer of Clipstream, a new cross-platform player-less video streaming format, today announced its financial results for the third quarter of fiscal 2014 ended May 31, 2014.

Highlights

- 3Q FY14 revenue increased eight percent year over year to $942,472, and 16 percent sequentially from 2Q FY14

- 3Q FY14 net income of $80,100 versus $26,595 during 3Q FY13

- 3Q FY14 operating cash flow of $148,597 during the quarter

- Licensing agreement to transmit digital fingerprints and meta data to Shazam

- Commenced service as exclusive supplier of digital distribution services to Sony Music Entertainment Australia

- Chargeable transactions with Universal Music Group grew by 83% and exceeded the global commitment two of three months during the quarter

“We saw meaningful revenue traction in our Play MPE business this quarter and continue to take a disciplined approach to adding sales, marketing and development resources to the enhancement and new service offerings of our Clipstream video cloud service,” said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. “To further accelerate the growth of our Play MPE business, we are developing a web based encoder to allow for a more user friendly experience, and pursuing opportunities to expand Play MPE into content segments beyond music delivery.”

“Continued expansion of Play MPE use within the U.S. independent music sector was a key contributor to the growth in third quarter revenue. This segment has experienced growth in 23 of the last 24 comparable quarters. Also, in two months during the quarter, our largest major label customer exceeded their level of committed usage. Continued growth in usage from this customer will now drive Play MPE revenue going forward,” said Fred Vandenberg, Chief Financial Officer of Destiny Media Technologies. “Through our licensing agreement with Shazam, we have simplified the process for the labels to introduce new music, and have strengthened Play MPE’s position as the industry’s leading secure delivery of pre-release music.”

Third Quarter Results

Service revenue for the third quarter of 2014 increased eight percent to $942,472, versus $873,866 during the prior year quarter. On a sequential basis, revenue increased 16 percent from the second quarter of fiscal 2014. The increase in revenue was primarily related to increased usage by U.S. independent labels and in Australia, as well as a more favorable exchange rate versus the Euro.

Net income for the third quarter was $80,100, or $0.00 per diluted share, versus net income of $26,595, or $0.00 per diluted share, in the prior year quarter.

Cash and cash equivalents on hand at the end of the third quarter was $1,038,930 versus $870,939 at the end of the second quarter. The company generated $148,597 of operating cash flow during the third quarter.

Third Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 14, 2014, to further discuss its third quarter fiscal 2014 results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID # 03977398. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com in the Company's proprietary Clipstream format.

About Destiny Media Technologies, Inc.

Destiny Media Technologies (DSY.V) (DSNY) provides services that enable content owners to securely display and distribute their audio and video content digitally through the internet. The Company's two major services are Clipstream and Play MPE. Clipstream (www.clipstream.com) is a video format that plays on any modern smart phone, tablet, internet, TV, or computer. With Clipstream, there is no player to configure or install, videos never go obsolete, and there are up to 90% cost savings from caching. Play MPE (www.plaympe.com) provides a standardized method to securely and cost effectively distribute pre-release music to radio stations and other music industry professionals, before it is ready for sale. More information can be found at www.dsny.com.

Forward-Looking Statements

This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company's risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K ending August 31, 2013, which is available on www.sedar.com or www.sec.gov.

Destiny Media Technologies, Inc.

CONDENSED STATEMENT OF OPERATIONS

(Expressed in United States dollars)

Unaudited

Three Months Three Months Nine Months Nine Months

Ended Ended Ended Ended

May 31, May 31, May 31, May 31,

2014 2013 2014 2013

Revenue 942,472 873,866 2,675,695 2,818,055

Operating expenses

General and administrative 271,855 285,857 1,041,520 675,454

Sales and marketing 330,830 207,492 1,057,221 651,092

Research and development 237,790 336,083 770,636 1,193,515

Amortization 39,655 28,746 104,063 84,792

880,130 858,178 2,973,440 2,604,853

Income (loss) from operations 62,342 15,688 (297,745) 213,202

Other income

Interest income 14,758 18,907 47,405 59,641

Income (loss) before income taxes 77,100 34,595 (250,340) 272,843

Income tax recovery (expense) - deferred 3,000 (8,000) - (73,000)

Net Income (loss) 80,100 26,595 (250,340) 199,843

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments 75,804 (13,465) (78,877) (96,429)

Total comprehensive income (loss) 155,904 13,130 (329,217) 103,414

Net income (loss) per common share,

basic and diluted 0.00 0.00 (0.00) 0.00

Destiny Media Technologies, Inc.

CONSOLIDATED BALANCE SHEETS

(Expressed in United States dollars)

Unaudited

 

May 31, August 31,

2014 2013

ASSETS

Current

Cash and cash equivalents 1,038,930 1,521,552

Accounts receivable, net of allowance for

doubtful accounts of $5,535 [August 31, 2013 - $11,392] 486,165 419,697

Other receivables 67,613 16,636

Current portion of long term receivable 112,205 99,649

Prepaid expenses 33,962 29,653

Deposits 22,962 35,611

Deferred tax assets - current portion 130,000 130,000

Total current assets 1,891,837 2,252,798

Long term receivable 374,643 440,889

Property and equipment, net 315,126 234,969

Deferred tax assets - long term portion 729,000 729,000

Total assets 3,310,606 3,657,656

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current

Accounts payable 102,526 79,622

Accrued liabilities 202,207 221,720

Deferred leasehold inducement - 2,892

Deferred revenue 31,100 70,415

Total liabilities 335,833 374,649

Commitments and contingencies

Stockholders’ equity

Common stock, par value $0.001

Authorized: 100,000,000 shares

Issued and outstanding: 52,865,173 shares

[August 31, 2013 - issued outstanding 51,981,964 shares] 52,865 51,982

Additional paid-in capital 8,949,484 8,929,384

Accumulated deficit (6,037,356) (5,787,016)

Accumulated other comprehensive income 9,780 88,657

Total stockholders’ equity 2,974,773 3,283,007

Total liabilities and stockholders’ equity 3,310,606 3,657,656

Contacts:

Fred Vandenberg

CFO, Destiny Media Technologies, Inc.

604 609 7736 x236

Investor Relations:

Dave Mossberg

Three Part Advisors: 817-310-0051


Contacts

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  • Joachim Brunner
  • IRW-Press
  • PR Contact
  • Tel: +43724221193011
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Posted 2014-07-15 12:23:00