VANCOUVER, Jan. 14, 2014 /CNW/ - 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 first quarter of fiscal 2014.
Net income for the first quarter was $44,393, or $0.00 per diluted share, versus net income of $160,050, or $0.00 per diluted share, in the prior year quarter. Service revenue for the first quarter was $922,541, versus $1,063,867 during the prior year quarter. Service revenue grew by 7% over the fourth quarter in fiscal 2013. As previously discussed, the year-over-year decrease in revenue was primarily related to a multi-year renewal of agreements with the Company's largest customer. While the renewal temporarily affected revenue during the quarter, it is expected to facilitate an increase in usage and global expansion.
"We introduced our Clipstream® video cloud service with a soft launch at the end of the first quarter," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "This marks a significant milestone for the company and we believe Clipstream® has the potential to change the way video is delivered over the Internet."
First Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 14, 2014, to further discuss its fourth quarter and fiscal 2013 results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID # 02343908. 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 ended November 30, | |||||
| 2013 | 2012 | ||||
| $ | $ | ||||
| Service revenue | 922,541 | 1,063,867 | |||
| Operating expenses | |||||
| General and administrative | 243,499 | 191,257 | |||
| Sales and marketing | 331,641 | 240,218 | |||
| Research and development | 264,484 | 400,352 | |||
| Depreciation and amortization | 31,347 | 27,656 | |||
| 870,971 | 859,483 | ||||
| Income from operations | 51,570 | 204,384 | |||
| Other income (expenses) | |||||
| Interest income | 16,823 | 20,666 | |||
| Interest and other expense | — | — | |||
| Income before provision for income taxes | 68,393 | 225,050 | |||
| Deferred income tax recovery (expense) | (24,000) | (65,000) | |||
| Net income | 44,393 | 160,050 | |||
| Other comprehensive income (loss), net of tax | |||||
| Foreign currency translation adjustments | (14,550) | (5,516) | |||
| Total comprehensive income (loss) | 29,843 | 154,534 | |||
| Destiny Media Technologies, Inc. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Expressed in United States dollars) | ||||||||
| Unaudited | ||||||||
| November 30, | August 31, | |||||||
| 2013 | 2013 | |||||||
| $ | $ | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | 1,458,487 | 1,521,552 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $8,495 [August 31, 2013 - $11,392] | 594,012 | 419,697 | ||||||
| Other receivables | 7,517 | 16,636 | ||||||
| Current portion of long term receivable | 104,217 | 99,649 | ||||||
| Prepaid expenses | 42,350 | 29,653 | ||||||
| Deferred tax assets - current portion | 130,000 | 130,000 | ||||||
| Total current assets | 2,336,583 | 2,217,187 | ||||||
| Deposits | 23,495 | 35,611 | ||||||
| Long term receivable | 422,426 | 440,889 | ||||||
| Property and equipment, net | 280,186 | 234,969 | ||||||
| Deferred tax assets - long term portion | 705,000 | 729,000 | ||||||
| Total assets | 3,767,690 | 3,657,656 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable | 142,990 | 79,622 | ||||||
| Accrued liabilities | 248,151 | 221,720 | ||||||
| Deferred leasehold inducement | — | 2,892 | ||||||
| Deferred revenue | 40,880 | 70,415 | ||||||
| Total liabilities | 432,021 | 374,649 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Common stock, par value $0.001 | ||||||||
| Authorized: 100,000,000 shares | ||||||||
| Issued and outstanding: 52,021,353 shares | ||||||||
| [August 31, 2013 - issued outstanding 51,981,964 shares] | 52,021 | 51,982 | ||||||
| Additional paid-in capital | 8,952,164 | 8,929,384 | ||||||
| Accumulated Deficit | (5,742,623) | (5,787,016) | ||||||
| Accumulated other comprehensive income | 74,107 | 88,657 | ||||||
| Total stockholders' equity | 3,335,669 | 3,283,007 | ||||||
| Total liabilities and stockholders' equity | 3,767,690 | 3,657,656 | ||||||
SOURCE Destiny Media Technologies, Inc.
Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236
Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051