Destiny Media Technologies, Inc. Announces Third Quarter Fiscal Year 2015 Results
VANCOUVER, July 15, 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 third quarter ended May 31, 2015.
Highlights
Highlights during and subsequent to the end of the third quarter include:
- Newest Clipstream® release featuring video encoding in the cloud
- Expanded Commercial License to Shazam for Fingerprinting and Meta Data
Third Quarter Results
Revenue for the quarter ended May 31, 2015 was $803,409 a decrease of 14.8 percent compared to the third quarter of 2014. The decrease in revenue was due primarily to the impact of a decline in value of the Euro relative to the US Dollar. Eliminating the negative impact of foreign exchange rates, total revenue for the third quarter would have been $918,833.
Net loss for the third quarter was ($218,429), or ($0.00) per share, versus net income of $80,100, or $0.00 during the prior year. The loss was primarily due to increased development and sales and marketing expenses in anticipation of the commercial launch of the Company's Clipstream® product, and increased rent.
"We are excited about the progress made the last few quarters on both sides of the business," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We continued to implement our proactive marketing plan for Play MPE®, further broadening our footprint by adding new re-selling partners and increasing exposure to our targeted customer base, as evidenced by the recent syndication of our music charts in Billboard Magazine. We made continued progress towards the commercialization of Clipstream®, including converting to a cloud-based encoder that allows users to upload videos from any device instantly and have their queued videos encoded at high speed with server class cloud machines. This was a highly sought after change that we feel will help to accelerate customer adoption and revenue growth for Destiny."
Third Quarter Fiscal 2015 Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15, 2015, to further discuss its third 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 # 84247775. 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 |
|||||
|
(Expressed in United States dollars) |
|||||
|
Unaudited |
|||||
| Three Months |
Three Months |
Nine Months |
Nine Months |
||
| Ended |
Ended |
Ended |
Ended |
||
| May 31, |
May 31, |
May 31, |
May 31, |
||
| 2015 |
2014 |
2015 |
2014 |
||
| $ |
$ |
$ |
$ |
||
| Revenue |
803,409 |
942,472 |
2,501,672 |
2,675,695 |
|
| Operating expenses |
|||||
| General and administrative |
267,967 |
271,855 |
808,547 |
1,041,520 |
|
| Sales and marketing |
360,925 |
330,830 |
1,114,431 |
1,057,221 |
|
| Research and development |
348,680 |
237,790 |
1,123,931 |
770,636 |
|
| Amortization |
53,595 |
39,655 |
128,378 |
104,063 |
|
| 1,031,167 |
880,130 |
3,175,287 |
2,973,440 |
||
| Income (loss) from operations |
(227,758) |
62,342 |
(673,615) |
(297,745) |
|
| Other income |
|||||
| Other Income |
289 |
— |
289 |
— |
|
| Interest income |
9,482 |
14,758 |
34,573 |
47,405 |
|
| Interest and Other Expense |
(442) |
— |
(442) |
— |
|
| Income (loss) before income taxes |
(218,429) |
77,100 |
(639,195) |
(250,340) |
|
| Income tax recovery (expense) - deferred |
— |
3,000 |
— |
— |
|
| Net income (loss) |
(218,429) |
80,100 |
(639,195) |
(250,340) |
|
| Other comprehensive income (loss), net of tax |
|||||
| Foreign currency translation adjustments |
(1,824) |
75,804 |
(267,611) |
(78,877) |
|
| Total comprehensive income (loss) |
(220,253) |
155,904 |
(906,806) |
(329,217) |
|
| Net income (loss) per common share, |
|||||
| basic and diluted |
(0.00) |
0.00 |
(0.01) |
(0.00) |
|
| Weighted average common shares outstanding: |
|||||
| Basic |
52,993,874 |
52,412,480 |
52,993,874 |
52,272,673 |
|
| Diluted |
52,993,874 |
52,510,940 |
52,993,874 |
52,272,673 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
|
(Expressed in United States dollars) |
|||
|
Unaudited |
|||
| May 31, |
August 31, |
||
| 2015 |
2014 |
||
| $ |
$ |
||
| ASSETS |
|||
| Current |
|||
| Cash and cash equivalents |
419,391 |
990,007 |
|
| Accounts receivable, net of allowance for |
|||
| doubtful accounts of $8,029 [Aug 31, 2014 – $5,513] |
514,842 |
544,609 |
|
| Other receivables |
10,246 |
78,040 |
|
| Current portion of long term receivable |
101,954 |
115,464 |
|
| Prepaid expenses |
30,975 |
147,206 |
|
| Deposits – current portion |
23,579 |
— |
|
| Total current assets |
1,100,987 |
1,875,326 |
|
| Deposits– long term portion |
34,167 |
22,870 |
|
| Long term receivable |
205,431 |
345,830 |
|
| Property and equipment, net |
421,829 |
315,180 |
|
| Deferred tax assets – long term portion |
842,000 |
842,000 |
|
| Total assets |
2,604,414 |
3,401,206 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current |
|||
| Accounts payable |
178,368 |
172,617 |
|
| Accrued liabilities |
211,275 |
203,353 |
|
| Deferred revenue |
4,415 |
22,589 |
|
| Deferred leasehold inducement |
76,173 |
— |
|
| Obligation under capital lease – current portion |
5,444 |
— |
|
| Total current liabilities |
475,675 |
398,559 |
|
| Obligation under capital lease – long term portion |
13,751 |
— |
|
| Total liabilities |
489,426 |
398,559 |
|
| Commitments and contingencies |
|||
| Stockholders' equity |
|||
| Common stock, par value $0.001 |
|||
| 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 |
9,080,472 |
9,061,325 |
|
| Accumulated deficit |
(6,750,610) |
(6,111,415) |
|
| Accumulated other comprehensive (loss) |
(267,868) |
(257) |
|
| Total stockholders' equity |
2,114,988 |
3,002,647 |
|
| Total liabilities and stockholders' equity |
2,604,414 |
3,401,206 |
|
SOURCE Destiny Media Technologies, Inc.
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