Destiny Media Technologies, Inc. Announces Fiscal 2013 Third
Quarter Results
VANCOUVER, July 15, 2013 /PRNewswire/ - 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.