Destiny Media Technologies, Inc. Announces Second Quarter Fiscal Year 2015 Results

News provided by

Apr 14, 2015, 04:01 ET

VANCOUVER, April 14, 2015 /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 cross-platform player-less video streaming format, today announced its financial results for the second quarter ended February 28, 2015.

Highlights

Highlights during and subsequent to the end of the second quarter include:

Dale Borland named Chief Operating Officer
Launched the newest Clipstream^® cloud video service and pricing plans
Granted new patents for both Clipstream^® and Play MPE^® technologies
Added local reseller for Play MPE^® in Australia

Second Quarter Results

Revenue for the quarter ended February 28, 2015 was $743,193, a decrease of 8.3 percent compared to the second quarter of 2014. The decrease in revenue was due entirely to the impact of a decline in value of the Euro relative to the US Dollar. Eliminating the negative impact of foreign exchange rates, Play MPE^® revenue for the second quarter would have shown a 3% increase and total revenue would have shown a modest increase.

Net loss for the second quarter declined to ($364,457), or ($0.01) per share, versus a net loss of ($420,766), or ($0.01) during the prior year. The decrease in net loss came in spite of increased sales and marketing expenses in anticipation of the commercial launch of the Company's Clipstream^® product, increased rent and expenses associated with the Company moving its corporate office.

"Our team has put for significant effort in the last several quarters to lay a strong foundation for both of our businesses and we are now well-prepared to resume top-line growth during 2015," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We have completed technology improvements, extensive testing and implemented a predictable and reliable cadence across the board for our products. We have also implemented a proactive marketing plan for the Play MPE^® business and expect to grow our business with both major and independent labels, as well as drive increase recipient usage, and introduce new value added services, such as the blog service we recently introduced. Overall, we have many new initiatives in place on both sides of the business and are excited about our growth prospects for the remainder of 2015 and going forward."

Second Quarter Fiscal 2015 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 14, 2015, to further discuss its second quarter fiscal 2015 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 74540260. 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, 2014, which is available on www.sedar.com or www.sec.gov.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in United States dollars)
Unaudited

	Three Months	Three Months	Six Months	Six Months
	Ended	Ended	Ended	Ended
	February 28,	February 28,	February 28,	February 28,
	2015	2014	2015	2014
	$	$	$	$

Revenue [note 10]	743,193	810,682	1,698,263	1,733,223

Operating expenses
General and administrative	246,922	526,166	540,580	769,665
Sales and marketing	422,493	394,750	753,506	726,391
Research and development	411,282	268,362	775,251	532,846
Amortization	38,998	33,061	74,783	64,408
	1,119,695	1,222,339	2,144,120	2,093,310
(Loss) from operations	(376,502)	(411,657)	(445,857)	(360,087)
Other income
Interest income	12,045	15,824	25,091	32,647
(Loss) before income taxes	(364,457)	(395,833)	(420,766)	(327,440)
Income tax recovery (expense) - deferred	—	21,000	—	(3,000)
Net (loss)	(364,457)	(374,833)	(420,766)	(330,440)

Other comprehensive (loss), net of tax
Foreign currency translation adjustments	(164,827)	(140,131)	(265,787)	(154,681)

Total comprehensive (loss)	(529,284)	(514,964)	(686,553)	(485,121)

Net (loss) per common share, basic and diluted	(0.01)	(0.01)	(0.01)	(0.01)

Weighted average common shares outstanding:
Basic	52,993,874	52,222,640	52,993,874	52,109,899
Diluted	52,993,874	52,222,640	52,993,874	52,109,899

CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Unaudited

			February 28,	August 31,
			2015	2014
			$	$

ASSETS
Current
Cash and cash equivalents			577,118	990,007
Accounts receivable, net of allowance for
	doubtful accounts of $5,601 [Aug 31, 2014 – $5,513]		526,697	544,609
Other receivables			43,740	78,040
Current portion of long term receivable [note 3]			101,611	115,464
Prepaid expenses			43,136	147,206
Deposits – current portion			29,564	—
Total current assets			1,321,866	1,875,326
Deposits– long term portion			46,999	22,870
Long term receivable [note 3]			237,096	345,830
Property and equipment, net			324,023	315,180
Deferred tax assets – long term portion			842,000	842,000
Total assets			2,771,984	3,401,206

LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable			212,596	172,617
Accrued liabilities			192,012	203,353
Deferred revenue			4,359	22,589
Deferred leasehold inducement			14,530	—
Obligation under capital lease – current portion [note 5]			4,967	—
Total current liabilities			428,464	398,559
Obligation under capital lease – long term portion [note 5]			14,115	—
Total liabilities			442,579	398,559
Commitments and contingencies [notes 5 and 8]

Stockholders' equity
Common stock, par value $0.001 [note 4]
	Authorized: 100,000,000 shares
	Issued and outstanding: 52,993,874 shares
		[Aug 31, 2014 – issued and outstanding 52,993,874 shares]	52,994	52,994
Additional paid-in capital			9,074,636	9,061,325
Accumulated deficit			(6,532,181)	(6,111,415)
Accumulated other comprehensive (loss)			(266,044)	(257)
Total stockholders' equity			2,329,405	3,002,647
Total liabilities and stockholders' equity			2,771,984	3,401,206