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

VANCOUVER, July 15, 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 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
COMPREHENSIVE INCOME

(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.

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

RELATED LINKS
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