Destiny Media Technologies, Inc. Announces First Quarter Fiscal 2014 Results

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Jan 14, 2014, 04:01 ET

VANCOUVER, Jan. 14, 2014 /PRNewswire/ - 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