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

VANCOUVER, Nov. 25, 2015 /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 the fourth quarter and fiscal year ended August 31, 2015.

Highlights

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

  • New Clipstream® Fall Release.
  • Introduced server API (application program interface) for the Clipstream® cloud based streaming video hosting solution.
  • Received six patent grants for JavaScript video and watermarking technologies.
  • Expanded Clipstream® into Ad Tech Industry.
  • Solidified the balance sheet with closing of $505,000 in a private placement

Fiscal 2015 Results

Total revenue for fiscal 2015 decreased 7 percent to $3.32 million from $3.57 million during the prior year. Eliminating the negative impact of approximately $313,000 for the effect of foreign exchange rates, total revenue for the year ended August 31, 2015 increased by 2%.  This increase is the result of increased sales for Play MPE® services (eliminating negative foreign exchange rate impacts) where Play MPE® saw increased demand in the independent record label segment in the United States and growth in Australian distributions.  Net loss for fiscal 2015 was ($1.60 million), or ($0.03) per share, versus net loss of ($324,399) or ($0.01) per share in the prior year due primarily to primarily to higher salaries and wages and the write-down of our income tax asset.

"2015 was a year of progress in laying the foundation for future growth at Destiny," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We continued to innovate, furthering our technological advances and have made significant progress in laying the foundation for future growth in both the Play MPE® and Clipstream®."

"For MPE, we continued to rollout our proactive marketing plan, investing in targeted advertising, adding additional re-sellers and internal sales staff.  Additionally, we significantly expanded growth in Australia with both existing major label clients, as well as with new independent labels.  We were also very happy to receive new patents for watermarking that position Destiny to be the leader in the industry for many years."

"On the Clipstream® side of the business, we continued to advance the solution, improving quality and the overall user experience.  We released three new versions during the year, with each addressing specific needs and meeting consumer demands.  We converted 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.  We also released an API that enables third parties to offer the innovative new JavaScript player with cloud based encoding and hosting as a feature in their own offerings."

"We are excited about our prospects going forward and believe we have positioned the company well for growth and profitability in the years to come," concluded Mr. Vestergaard.

Fourth Quarter Fiscal 2015 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Wednesday, November 25, 2015, to further discuss its fourth quarter and fiscal year 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 # 62940387. 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.  

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
(Expressed in United States dollars)


Years ended August 31


2015

2014


$

$




Service revenue

3,323,537

3,572,376




Operating expenses



General and administrative

1,119,468

1,351,991

Sales and marketing

1,441,833

1,378,335

Research and development

1,376,386

1,062,668

Depreciation and amortization

182,863

148,165


4,120,550

3,941,159

Loss from operations

(797,013)

(368,783)

Other income (expenses)



Interest income

42,787

61,366

Other income (expenses)

(420)

18

Loss before provision for income taxes

(754,646)

(307,399)

Income tax expense - deferred

(842,000)

(17,000)




Net loss

(1,596,646)

(324,399)




Foreign currency translation adjustments

(364,374)

(88,914)




Total comprehensive loss

(1,961,020)

(413,313)




Net loss per common share, basic and diluted

(0.03)

(0.01)

 

CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)


As at August 31


2015

2014


$

$




ASSETS



Current



Cash and cash equivalents

387,316

990,007

Accounts receivable, net of allowance for




doubtful accounts of $6,058 [2014 –$5,513]

399,148

544,609

Other receivables

15,471

78,040

Current portion of long term receivable

98,180

115,464

Prepaid expenses

36,042

147,206

Total current assets

936,157

1,875,326

Deposits

32,222

22,870

Long term receivable

167,350

345,830

Property and equipment, net

401,461

315,180

Deferred tax assets – long term portion

842,000

Total assets

1,537,190

3,401,206




LIABILITIES AND STOCKHOLDERS' EQUITY



Current



Accounts payable

139,879

172,617

Accrued liabilities

189,672

203,353

Deferred leasehold inducement

63,217

Deferred revenue

24,712

22,589

Obligation under capital lease – current portion

5,205

Total current liabilities

422,685

398,559

Obligation under capital lease – long term portion

12,071

Total liabilities

434,756

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




[2014 – issued and outstanding 52,993,874 shares]

52,994

52,994

Additional paid-in capital

9,122,132

9,061,325

Accumulated deficit

(7,708,061)

(6,111,415)

Accumulated other comprehensive loss

(364,631)

(257)

Total stockholders' equity 

1,102,434

3,002,647

Total liabilities and stockholders' equity

1,537,190

3,401,206

 

SOURCE Destiny Media Technologies, Inc.

For further information: Contacts: Fred Vandenberg, CFO, Destiny Media Technologies, Inc., 604 609 7736 x236; Investor Relations: Three Part Advisors, Jeff Elliott, 972-423-7070; Dave Mossberg, 817-310-0051

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