Destiny Media Announces Third Quarter Results
VANCOUVER, July 17, 2012 /PRNewswire/ - Destiny Media Technologies (TSXV: DSY) (OTCQX: DSNY) is pleased to announce results for the quarter ending May 31, 2012. Revenues of $1,022,921 reflect a 14% increase from the prior quarter, but a 13% decline from the prior year. The decline as compared to the prior year quarter is attributable to the recognition of a single revenue item included in a multi-year agreement that was recognized in Q3-2011. European revenues increased 11% over the prior year and currently represent 44% of our music distribution revenue. Nine month revenue was approximately the same as in prior year.
Operating expenses for the quarter declined from $853,098 in the prior year to $208,827. The decline is attributable to a gain on the settlement of litigation in Australia. The company agreed to accept a settlement with a value of approximately $859,000. The company will receive the payment, which is secured by real estate and a general security agreement, over six years. The outstanding balance attracts 10.25% interest and is recorded as a long term receivable. Litigation costs during the period were significant. Over nine months, the company spent approximately $607,000 on legal fees. This expense will decline significantly in future quarters. R&D expenses increased 25% over the prior year, reflecting increased investments in IP, infrastructure and staffing to support the launch of our new Clipstream® and Play MPE® products.
Net income increased 182% over the prior year to $651,138 ($.01 per share).
| Three Months | Three Months | Nine Months | Nine Months | ||
| Ended | Ended | Ended | Ended | ||
| May 31, | May 31, | May 31, | May 31, | ||
| 2012 | 2011 | 2012 | 2011 | ||
| $ | $ | $ | $ | ||
| Revenue | 1,022,921 | 1,176,473 | 3,042,363 | 3,074,183 | |
| Operating expenses | |||||
| General and administrative | (469,548) | 262,467 | 439,574 | 922,012 | |
| Sales and marketing | 162,146 | 184,280 | 554,816 | 598,811 | |
| Research and development | 492,041 | 392,818 | 1,456,435 | 1,151,463 | |
| Amortization | 24,248 | 13,533 | 54,987 | 44,313 | |
| 208,887 | 853,098 | 2,505,812 | 2,716,599 | ||
| Income from operations | 814,034 | 323,375 | 536,551 | 357,584 | |
| Other income (expenses) | |||||
| Other income | 4,462 | 43 | 4,462 | 3,073 | |
| Interest income | 22,648 | 1,445 | 27,619 | 6,527 | |
| Interest and other expense | (6) | (143) | (1,186) | (628) | |
| Income before income taxes | 841,138 | 324,720 | 567,446 | 366,556 | |
| Income tax recovery (expense) - deferred | (190,000) | (94,000) | (190,000) | (106,000) | |
| Net income (loss) | 651,138 | 230,720 | 377,446 | 260,556 | |
| Net income (loss) per common share, basic and diluted | 0.01 | 0.01 | 0.01 | 0.01 | |
About Destiny Media Technologies, Inc.
Universal, EMI, Warner, Sony and one thousand other labels use Destiny's secure distribution service to deliver their pre-release music to radio and other trusted recipients. The company is launching a new cross platform playerless streaming format that doesn't require streaming servers and which reaches ten times as many viewers as other solutions with the same bandwidth and infrastructure by reusing streams. Publishers can reach smart phones, tablets, e-book readers and computers from a standard web server without the cost of transcoding.
SOURCE Destiny Media Technologies, Inc.
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