Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results
VANCOUVER, April 10, 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 second quarter of fiscal 2014.
Highlights
Highlights during and subsequent to the end of the second quarter include:
- Launched the Clipstream video cloud service for commercial use
- Became the exclusive supplier of digital distribution services for Sony Music Australia
- Received approval for our first watermarking technology patent in Europe
- Signed an agreement with Shazam to license digital fingerprints and metadata to its servers
"This quarter marked a significant milestone for our company with the launch of the Clipstream® video cloud service," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "We believe this product has the capability to disrupt the $5 billion dollar video encoding market. We continue to build our sales and support staff and as the service gains traction, we have the opportunity to rapidly grow our revenues and profitability. We are making our Play MPE service more user friendly with the introduction of applications for multiple devices and pursuing opportunities beyond music delivery."
Second Quarter Results
Service revenue for the second quarter was $810,682, versus $880,322 during the prior year quarter. 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 affected year over year revenue comparisons during the quarter, it is expected to facilitate an increase in usage and global expansion.
Net loss for the second quarter was ($374,833), or ($0.01) per share, versus net income of $13,198, or $0.00 per diluted share, in the prior year quarter. This quarter's results include an expense of $344,352 related to stock based compensation and payouts made for the repurchase of stock options by the Company. Excluding this expense, net loss for the second quarter was ($30,481), or ($0.00) per share, compared to net income of $13,198, or $0.00 per diluted share in the prior year quarter.
Second Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on April 10, 2014, to further discuss its second quarter fiscal 2014 results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID # 07868883. 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 February 28, 2014 $ |
Three Months Ended February 28, 2013 $ |
Six Months Ended February 28, 2014 $ |
Six Months Ended February 28, 2013 $ |
| Revenue | 810,682 | 880,322 | 1,733,223 | 1,944,189 |
| Operating expenses | ||||
| General and administrative | 526,166 | 198,340 | 769,665 | 389,597 |
| Sales and marketing | 394,750 | 203,382 | 726,391 | 443,600 |
| Research and development | 268,362 | 457,080 | 532,846 | 857,432 |
| Amortization | 33,061 | 28,390 | 64,408 | 56,046 |
| 1,222,339 | 887,192 | 2,093,310 | 1,746,675 | |
| Income (loss) from operations | (411,657) | (6,870) | (360,087) | 197,514 |
| Other income | ||||
| Interest income | 15,824 | 20,068 | 32,647 | 40,734 |
| Income (loss) before income taxes | (395,833) | 13,198 | (327,440) | 238,248 |
| Income tax recovery (expense) - deferred | 21,000 | — | (3,000) | (65,000) |
| Net Income (loss) | (374,833) | 13,198 | (330,440) | 173,248 |
| Other comprehensive income (loss), net of tax | ||||
| Foreign currency translation adjustments | (140,131) | (77,448) | (154,681) | (82,964) |
| Total comprehensive income (loss) | (514,964) | (64,250) | (485,121) | 90,284 |
| Net income (loss) per common share, | ||||
| basic and diluted | (0.01) | 0.00 | (0.01) | 0.00 |
| Destiny Media Technologies, Inc. CONSOLIDATED BALANCE SHEETS (Expressed in United States dollars) Unaudited |
||
| |
February 28, 2014 $ |
August 31, 2013 $ |
| ASSETS | ||
| Current | ||
| Cash and cash equivalents | 870,939 | 1,521,552 |
| Accounts receivable, net of allowance for doubtful accounts of $3,143 [August 31, 2013 - $11,392] |
616,665 | 419,697 |
| Other receivables | 73,852 | 16,636 |
| Current portion of long term receivable | 105,077 | 99,649 |
| Prepaid expenses | 42,093 | 29,653 |
| Deposits | 22,355 | 35,611 |
| Deferred tax assets - current portion | 130,000 | 130,000 |
| Total current assets | 1,860,981 | 2,252,798 |
| Long term receivable | 387,900 | 440,889 |
| Property and equipment, net | 262,902 | 234,969 |
| Deferred tax assets - long term portion | 726,000 | 729,000 |
| Total assets | 3,237,783 | 3,657,656 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current | ||
| Accounts payable | 159,824 | 79,622 |
| Accrued liabilities | 317,625 | 221,720 |
| Deferred leasehold inducement | — | 2,892 |
| Deferred revenue | 5,528 | 70,415 |
| Total liabilities | 482,977 | 374,649 |
| Commitments and contingencies | ||
| Stockholders' equity | ||
| Common stock, par value $0.001 | ||
| Authorized: 100,000,000 shares | ||
| Issued and outstanding: 52,680,845 shares [August 31, 2013 - issued outstanding 51,981,964 shares] |
52,681 | 51,982 |
| Additional paid-in capital | 8,885,605 | 8,929,384 |
| Accumulated deficit | (6,117,456) | (5,787,016) |
| Accumulated other comprehensive income (loss) | (66,024) | 88,657 |
| Total stockholders' equity | 2,754,806 | 3,283,007 |
| Total liabilities and stockholders' equity | 3,237,783 | 3,657,656 |
| Destiny Media Technologies, Inc. REG G RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA |
||||||||||
| Three Months Ended February 28, 2014 |
Three Months Ended February 28, 2013 |
|||||||||
| Net (loss) income | ($374,833) | $13,198 | ||||||||
| (Benefit) provision for income taxes | ($21,000) | $0 | ||||||||
| Interest (income) expense | ($15,824) | ($20,068) | ||||||||
| Depreciation and amortization expense | $33,061 | $28,390 | ||||||||
| Share-based compensation | $344,352 | $0 | ||||||||
| Adjusted EBITDA | ($34,244) | $21,520 | ||||||||
SOURCE Destiny Media Technologies, Inc.
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