The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Destiny Media Technologies, Inc. Announces Fiscal 2013 Third Quarter Results

Tuesday, July 16, 2013

Destiny Media Technologies, Inc. Announces Fiscal 2013 Third Quarter Results

00:05 EDT Tuesday, July 16, 2013

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.

For further information: <p> <b>Contacts:</b><br/> Fred Vandenberg<br/> CFO, Destiny Media Technologies, Inc.<br/> 604 609 7736 x236 </p> <p> Investor Relations:<br/> Dave Mossberg<br/> Three Part Advisors<br/> 817-310-0051 </p>

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections