VANCOUVER, July 15, 2013 /CNW/ - Destiny Media Technologies (TSXV: DSY) (OTCQX: DSNY), the global standard for the secure distribution of pre-release music to radio and the developer of a new cross-platform player-less video streaming format, today announced its financial results for the third quarter and nine-month period ended May 31, 2013. Net income for the third quarter was $26,595, or $0.00 per diluted share, versus net income of $651,138, or $0.01 per diluted share, in the prior year quarter. The prior year's results were aided by a $694,000 net recovery of litigation costs that did not recur this year. Net income for the nine-month period was $199,843 versus $377,446 in the previous nine-month period.
Revenue for the third quarter was $873,866 versus $1,022,921 in the prior year quarter. For the nine-month period, revenue decreased 7.4 percent to $2,818,055. The decrease in revenue from Play MPE®, which represents approximately 96 percent of third quarter and year-to-date revenue, was primarily related to a change in contractual terms with a significant customer and consolidation within the record label industry.
"As expected, our third quarter revenue was affected due to a change in contractual terms with a major Play MPE customer. However, usage among this customer, as well as other major and independent record labels increased during the quarter, particularly in the United States and Scandinavia," said Steve Vestergaard, Chief Executive Officer of Destiny Media Technologies. "With greater incentive to increase long-term usage, our significant customer is beginning to expand into new territories. As we establish beachheads in these new markets, we expect this to drive greater usage among the other majors and independent labels, as well as more favorable revenue comparisons."
"We continue to make progress towards the launch of our Clipstream® video cloud system. This product should be available during the first quarter of fiscal 2014."
Third Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 1:00 p.m. EDT (10:00am PDT) on July 16, 2013, to further discuss its third quarter results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID #52236938. 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 (TSX:DSY, OTC: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 99% cost savings by reducing the use of transcoding, infrastructure and bandwidth. Play MPE® (www.plaympe.com) provides a standardized method to securely and cost effectively distributes 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, 2012, which is available on www.sedar.com or www.sec.gov.
| Destiny Media Technologies, Inc. | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||
| (Expressed in United States dollars) | |||||
| Unaudited | |||||
| Three Months Ended | Nine Months Ended | ||||
| May 31, | May 31, | May 31, | May 31, | ||
| 2013 | 2012 | 2013 | 2012 | ||
| Revenue | $873,866 | $1,022,921 | $2,818,055 | $3,042,363 | |
| Operating expenses | |||||
| General and administrative | 285,857 | (469,548) | 675,454 | 439,574 | |
| Sales and marketing | 207,492 | 162,146 | 651,092 | 554,816 | |
| Research and development | 336,083 | 492,041 | 1,193,515 | 1,456,435 | |
| Amortization | 28,746 | 24,248 | 84,792 | 54,987 | |
| 858,178 | 208,887 | 2,604,853 | 2,505,812 | ||
| Income from operations | 15,688 | 814,034 | 213,202 | 536,551 | |
| Other income (expenses) | |||||
| Other income | — | 4,462 | — | 4,462 | |
| Interest income | 18,907 | 22,648 | 59,641 | 27,619 | |
| Interest and other expense | — | (6) | — | (1,186) | |
| Income before income taxes | 34,595 | 841,138 | 272,843 | 567,446 | |
| Income tax expense - deferred | 8,000 | 190,000 | 73,000 | 190,000 | |
| Net Income | 26,595 | 651,138 | 199,843 | 377,446 | |
| Other comprehensive income (loss), net of tax | |||||
| Foreign currency translation adjustments | (13,465) | (44,320) | (96,429) | (63,174) | |
| Total comprehensive income | 13,130 | 606,818 | 103,414 | 314,272 | |
| Net income per common share, | |||||
| basic and diluted | 0.00 | 0.01 | 0.00 | 0.01 | |
| Weighted average common shares outstanding: | |||||
| Basic | 51,961,922 | 51,881,309 | 52,021,101 | 50,955,546 | |
| Diluted | 52,651,928 | 52,663,722 | 52,703,717 | 51,362,308 | |
| Destiny Media Technologies, Inc. | ||||
| CONDENSED CONSOLIDATED BALANCED SHEETS | ||||
| (Expressed in United States dollars) | ||||
| Unaudited | ||||
| May 31, 2013 | August 31, 2012 | |||
| ASSETS | ||||
| Current | ||||
| Cash and cash equivalents | $1,225,754 | $1,275,423 | ||
| Accounts receivable, net of allowance for doubtful accounts of $11,605 [August 31, 2012 - $6,053] | 603,509 | 440,053 | ||
| Other receivables | 13,686 | 48,508 | ||
| Current portion of long term receivable | 105,062 | 104,056 | ||
| Prepaid expenses | 32,990 | 27,059 | ||
| Deferred tax assets - current portion | 258,000 | 258,000 | ||
| Total current assets | 2,239,001 | 2,153,099 | ||
| Deposits | 36,279 | 37,847 | ||
| Long term receivable | 504,841 | 625,098 | ||
| Property and equipment, net | 242,720 | 287,958 | ||
| Deferred tax assets - long term portion | 616,000 | 689,000 | ||
| Total assets | 3,638,841 | 3,793,002 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current | ||||
| Accounts payable | 59,796 | 199,930 | ||
| Accrued liabilities | 225,374 | 250,623 | ||
| Deferred leasehold inducement | 7,364 | 5,843 | ||
| Deferred revenue | 59,775 | 55,671 | ||
| Total liabilities | 352,309 | 512,067 | ||
| Commitments and contingencies | ||||
| Stockholders' equity | ||||
| Common stock, par value $0.001 | ||||
| Authorized: 100,000,000 shares | ||||
| Issued and outstanding: 51,961,922 shares [August 31, 2012 - issued and outstanding 52,091,004 shares] | 51,962 | 52,091 | ||
| Additional paid-in capital | 8,911,269 | 9,008,957 | ||
| Accumulated Deficit | (5,813,187) | (6,013,030) | ||
| Accumulated other comprehensive income | 136,488 | 232,917 | ||
| Total stockholders' equity | 3,286,532 | 3,280,935 | ||
| Total liabilities and stockholders' equity | 3,638,841 | 3,793,002 | ||
SOURCE: Destiny Media Technologies, Inc.
Contacts:
Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236
Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051