Destiny Media Technologies, Inc. Announces First Quarter Fiscal Year 2017 Results

 Return to profitability / 5% Year over Year Revenue Growth

VANCOUVER, Jan. 17, 2017 /CNW/ - 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 its fiscal 2017 first quarter ended November 30, 2016.

Highlights

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

  • Return to profitability with an overall margin of 12%
  • Total revenue grew by 5% compared the prior year and prior quarter
  • Fourth consecutive Q over Q revenue growth
  • Strongest cash position since August 31, 2014

First Quarter Fiscal 2017 Results

Revenue for the quarter ended November 30, 2016 grew by 5% to $892,229.  The increase is the result of revenue growth in all major territories in which we operate.

Q1 2017 saw the company return to profitability with Net Income of $104,128.   

"We are excited to see positive results from allocation of resources to our profitable Play MPE enterprise," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We are currently working on adding increased accessibility to the Play MPE product which we expect to launch in Q4 of fiscal 2017."

First Quarter Fiscal 2017 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Tuesday, January 17, 2017, to further discuss its first quarter fiscal year 2017 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 34915777. 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. 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, 2016, 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


Ended

Ended


November 30,

November 30,


2016

2015


$

$

Service Revenue 

892,229

847,721




Operating expenses 



General and administrative 

178,906

235,383

Sales and marketing

247,406

350,598

Research and development

324,674

319,040

Depreciation and amortization

41,878

49,829


792,864

954,850

Income (loss) from operations

99,365

(107,129)

Other income



Interest income

4,763

6,122

Net income (loss)

104,128

(101,007)




Other comprehensive loss, net of tax



Foreign currency translation adjustments

(33,369)

(17,756)




Total comprehensive income (loss)

70,759

(118,763)




Net income (loss) per common share, 




basic and diluted

0.00

(0.00)




Weighted average common shares outstanding:




Basic

55,013,874

53,903,984


Diluted

55,013,874

53,903,984

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in United States dollars)

Unaudited

As at




November 30,

August 31,


2016

2016


$

$




ASSETS



Current



Cash and cash equivalents

961,706

662,743

Accounts receivable, net of allowance for



doubtful accounts of $2,645 [Aug 31, 2016 – $4,049] 

483,393

628,135

Other receivables

26,071

15,051

Current portion of long term receivable 

125,053

113,834

Prepaid expenses

43,685

61,525

Deposits

21,876

Total current assets

1,661,784

1,481,288

Deposits

552

22,978

Long term receivable 

30,823

61,642

Property and equipment, net

154,374

174,951

Intangible assets, net

105,785

110,017

Total assets

1,953,318

1,850,876




LIABILITIES AND STOCKHOLDERS' EQUITY



Current



Accounts payable

179,753

108,157

Accrued liabilities

157,126

190,077

Deferred leasehold inducement

19,788

28,962

Deferred revenue

15,010

23,563

Obligation under capital lease – current portion

5,222

5,240

Total current liabilities

376,899

355,999

Obligation under capital lease – long term portion 

4,853

6,472

Total liabilities

381,752

362,471




Stockholders' equity



Common stock, par value $0.001




Authorized: 100,000,000 shares




Issued and outstanding: 55,013,874 shares





[Aug 31, 2016 – issued and outstanding 55,013,874 shares]

55,014

55,014

Additional paid-in capital

9,678,482

9,666,080

Accumulated deficit

(7,792,184)

(7,896,312)

Accumulated other comprehensive (loss)

(369,746)

(336,377)

Total stockholders' equity 

1,571,566

1,488,405

Total liabilities and stockholders' equity

1,953,318

1,850,876

 

SOURCE Destiny Media Technologies, Inc.

For further information: Fred Vandenberg, CFO, Destiny Media Technologies, Inc., 604 609 7736 x236

RELATED LINKS
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