Destiny Announce Record Q3 Revenues Up 40% from Q2
Sequential Revenue Growth in 15 of the Last 19 Quarters Averaged 20%
VANCOUVER, July 14, 2011 /PRNewswire/ - Destiny Media Technologies (TSXV: DSY) (OTCBB: DSNY) is pleased to announce results for the quarter and period ending May 31, 2011. Revenues of $1,176,473 are the highest in the company's history and reflect an increase of 40% over the previous quarter and 24% over the same quarter in the prior year. Income before income taxes of $324,720 is 33% higher than Q3 2010.
Company CFO, Fred Vandenberg comments "While we are pleased with our growing profit, we are continuing to build the foundations for future revenue increases with a current focus on creating local support and addressing area requirements for other international markets including France, Germany and Japan and increasing usage where penetration is strong. We expect new expenditures from expanded development, support, sales and marketing staff to result in positive impacts to both revenue and net income. After the quarter, we settled three long running legal disputes where we received intellectual property rights and a lump sum settlement amount of $600,000 which is not yet reflected in the financial results. We expect a significant reduction in legal costs associated with this dispute."
According to company CEO, Steve Vestergaard, the period was one of great progress for the company. "We received what we consider to be an extremely valuable patent for watermarking. This proprietary technology is a solution for owners of both video and audio content who wish to protect their content from piracy.
We signed a number of new and renewal agreements for our Play MPE® service, including a renewal of our global agreement with Universal Music and a number of independent and international regional major agreements. The partnership we announced in May with a subsidiary of Dentsu for Asian distribution is expected to impact Q1 2012.
We've been investing aggressively in infrastructure and engineering, with three Clipstream® projects, a complete rewrite of the Play MPE® system and a major integration with a third party scheduling and reporting system with the various initiatives under development for up to three years. We expect these projects to start launching this quarter and next. We were pleased to be recognized by Profit Magazine as one of Canada's fastest growing companies and see great opportunity ahead."
| Three Months | Three Months | Nine Months | Nine Months | |
| Ended | Ended | Ended | Ended | |
| May 31, | May 31, | May 31, | May 31, | |
| 2011 | 2010 | 2011 | 2010 | |
| $ | $ | $ | $ | |
| Revenue | 1,176,473 | 952,383 | 3,074,183 | 2,869,775 |
| Operating expenses | ||||
| General and administrative | 262,467 | 255,487 | 922,012 | 768,013 |
| Sales and marketing | 184,280 | 184,801 | 598,811 | 578,289 |
| Research and development | 392,818 | 283,757 | 1,151,463 | 879,668 |
| Amortization | 13,533 | 14,669 | 44,313 | 38,789 |
| 853,098 | 738,714 | 2,716,599 | 2,264,759 | |
| Income from operations | 323,375 | 213,669 | 357,584 | 605,016 |
| Other income (expenses) | ||||
| Other income | 43 | 30,156 | 3,073 | 88,466 |
| Interest income | 1,445 | 641 | 6,527 | 2,706 |
| Interest and other expense | (143) | (537) | (628) | (2,410) |
| Income before income taxes | 324,720 | 243,929 | 366,556 | 693,778 |
| Income tax expense - deferred | (94,000) | — | (106,000) | — |
| Net Income | 230,720 | 243,929 | 260,556 | 693,778 |
| Net income per common share, basic and diluted | 0.01 | 0.00 | 0.01 | 0.01 |
About Destiny Media Technologies
Destiny Media (http://www.dsny.com) is the developer of the Play MPE® system (http://www.plaympe.com) which the recording industry uses to securely distribute new pre-release music through the internet to trusted recipients such as radio, media and VIP's. Real time usage statistics are available at http://www.plaympe.com/v4/company/plaympestats.php and a product overview is available at http://www.dsny.com/pres/index.htm
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.
SOURCE Destiny Media Technologies, Inc.
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