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.