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

VANCOUVER, April 14, 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 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 increased 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 April 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

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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