D-BOX announces its third quarter results

LONGUEUIL, QC, Feb. 23 /CNW Telbec/ - D-BOX Technologies Inc. (TSXV: DBO.A) announces revenues of $1,364,706 for the third quarter of its 2011 financial year ended December 31, 2010, representing a 4% increase in comparison to revenues of $1,314,968 achieved in the third quarter of the 2010 financial year. Given 94% of revenues of the quarter are realized in US dollars, sales growth would have been of 8% excluding unfavourable exchange rate fluctuations. The net loss for the quarter amounts to $1,836,290 ($0.0141 per share) which compares to a net loss of $1,440,576 ($0.0139 per share) for the corresponding quarter of the 2010 financial year.


Financial Highlights - For the three and nine-month periods ended December 31 (in Canadian $ - unaudited)

 
  3rd quarter ended December 31      Nine-month period ended December 31
Revenues from: 2010 2009 2010 2009
         
Original Equipment Manufacturers       1,101,749       1,255,409 3,373,350       3,289,234
Commercial Theatre Exhibitors                       
  Sale of systems   18,009    20,182 447,694    20,182
  Utilization rights, rental and maintenance 244,948 39,377 611,196 103,126
           
Total Revenues     1,364,706 1,314,968   4,432,240 3,412,542
           
Net loss and comprehensive loss       (1,836,290)       (1,440,576) (4,917,578)       (4,408,480)
Loss per share - basic and diluted       ($0.0141)       ($0.0139) ($0.0389)       ($0.0444)
      Data from the
consolidated balance sheet
         
    December 31, 2010 March 31, 2010
Cash and cash equivalents 14,635, 666 7,724, 497

Additional Highlights

  • Equity financings totalling a net amount of $21.8 million were successfully completed in October 2010, December 2010 and January 2011, including investments made from existing shareholders and the exercise of outstanding warrants;

  • Deployment of 1,243 D-BOX MFX seats in 52 sites in North-America, Europe and Asia. During the quarter, 6 new theatres chains were added to D-BOX's clientele. Also, an agreement was reached with Cineplex Entertainment L.P., the fifth largest theatre chain in North-America1 to deploy the D-BOX technology in 10 more theatre rooms, out of which 2 are already installed, in addition to including an option for 10 others;

  • D-BOX continues to demonstrate its capacity to continuously access feature presentations produced by Hollywood's main studios. As of today, 24 feature presentations were obtained since April 2009 including 13 which ranked no. 1 at the Box Office; and
  • Continuous breakthrough of the Original Equipment Manufacturers market (OEM's) with the signature of two agreements: one of WMS, an important Corporation active in the casino gaming sector and another one with Precision Flight Control, which is active in the flight simulation industry.


Commenting on the quarterly realizations, Mr. Claude Mc Master, President and Chief Executive Officer declared: "We continue to execute our business plan armed with a strong balance sheet and the support of quality partners committed to our success. We now have in hand all the necessary tools to accelerate the speed of our deployment."

Third Quarter ended December 31, 2010

Revenues for the third quarter ended December 31, 2010 amounted to $1,364,706 up 4% from the $1,314,968 in the corresponding period of the 2010 financial year. Since 94% of revenues are realized in US dollars, sales growth would have been 8% excluding unfavourable exchange rate fluctuations.

Sales to Original Equipment Manufacturers (OEM) amounted to $1,101,749 in the third quarter of the 2011 financial year representing a 12% decrease (9% when excluding the impact of foreign exchange). This amount compares to $1,255,409 realized in the corresponding period of the 2010 financial year.

Revenues generated by commercial theatres increased 342% to $262,957 in the third quarter which compares to $59,559 for the corresponding quarter of the previous financial year. As at December 31, 2010, 1,095 D-BOX MFX seats were installed in 47 theatre rooms in comparison to 678 systems installed in 29 theatre rooms on December 31, 2009, representing a 62% increase.

Gross profit amounted to $595,764 (44% of revenues) which compares to $539,518 (41% of revenues) for the corresponding period last year. Excluding depreciation and amortization, which mostly relates to goods intended for lease, gross profit amounted to $725,823 (53% of revenues) which compares to $548,863 (42% of revenues). For the third quarter of the 2011 financial year, net loss and comprehensive loss amounted to $1,836,290 ($0.0141 per share)) which compares to $1,440,576 ($0.0139 per share) for the corresponding quarter last year.

Nine-month Period ended December 31, 2010

Revenues of the nine-month period ended December 31, 2010 amounted to $4,432,240 up 30% from the $3,412,542 recorded last year. Since 92% of revenues are realized in US dollars, sales growth would have been 39% when excluding the unfavorable evolution of the exchange rate. Sales to Original Equipment Manufacturers (OEM) amounted to $3,373,350, a 3% increase (10% when excluding the impact of foreign exchange) in comparison to $3,289,234 for the corresponding period of the 2010 financial year.

Revenues generated by commercial theatres amounted to $1,058,890 which compares to $123,308 for the corresponding period of the previous financial year.

Gross profit amounted to $1,808,078 (41% of revenues) which compares to $1,508,273 (44% of revenues) for the corresponding period last year. Excluding depreciation and amortization, gross profit amounted to $2,116,299 (48% of revenues) which compares to $1,533,811(45% of revenues).

Additional Information in Regards to the Three and Nine-month Periods ended December 31, 2010

The financial information in regards to the three and nine-month periods ended December 31, 2010 should be read in conjunction with the Corporation's financial statements and Management's Discussion and Analysis dated February 22, 2011. These documents are available at www.sedar.com

Outlook

Generally speaking, D-BOX will set its priorities on two significant development paths, namely commercial theatres and the clientele of Original Equipment Manufacturers (OEM) each one of them addressing their specific market. In the short term, D-BOX intends to allocate the vast majority of its human, financial and material resources to the commercial theatre market which should offer the most interesting possibilities over this period of time.

In regards to commercial theatres, D-BOX intends to continue signing agreements with new movie exhibitors, to increase the number of motion units installed at existing exhibitors and to obtain new titles from movie studios. In North America, D-BOX now intends to widen its offering to national chains, more present, amongst others in large urban centres. These chains provide the potential to significantly accelerate the speed of deployment as well as the Corporation's current visibility.

As for the Original Equipment Manufacturers (OEM) clientele, the Corporation intends to continue its quest for established and recognized partners within their respective markets while possessing an international scope. The Corporation believes this strategy will allow for a reduction of its sales and marketing expenses while allowing for a more rapid deployment of its motion generation systems.

By increasing its visibility and brand awareness, the Corporation believes that all of its business segments will eventually experience sustained growth.

About D-BOX

D-BOX Technologies designs and manufactures leading edge high-technology motion systems mainly suited to the needs of the entertainment industry. This unique and patented technology, D-BOX Motion CodeTM, uses motion effects specifically programmed for each film, TV serie or video game, which are sent to a motion generating system integrated within either a platform or a seat. The resulting motion is perfectly synchronized with all onscreen action, creating an unmatched realistic, immersive experience. To date, many prominent Hollywood studios have started embedding D-BOX Motion CodeTM on selected high definition Blu-rayTM, DVD and theatrical releases. By reaching agreements with the leaders of both the motion picture and gaming industries, D-BOX's award-winning motion technology is gradually proving itself as a new global standard in the entertainment world. D-BOX is a publicly traded company listed on the TSX Venture exchange under the symbol DBO.A. For further information please see www.d-box.com

D-BOX® is a registered trademark and D-BOX Motion CodeTM is a trademark of D-BOX Technologies Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

Disclaimer in Regards to Forward-looking Statements

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management when formulated, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

1 Source : National Association of Theatre Owners.


SOURCE D-BOX TECHNOLOGIES INC.

For further information:

Mr. Luc Audet
Chief Financial Officer
D-BOX Technologies Inc.
450-442-3003, extension 296        
laudet@d-box.com
 
Mr. Marc Jasmin, President
Jasmin Financial Communications Inc.
514-231-2360
marc@comjasmin.com
http://www.comjasmin.com

Organization Profile

D-BOX TECHNOLOGIES INC.

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