TORONTO, April 29 /CNW/ - YANGAROO Inc. (TSXV: YOO) (OTCBB: YOOIF), the
industry's leading secure digital media distribution company, today
announced its results for the year and fourth quarter ended December
31, 2010. Revenue for the fourth quarter of 2010 was 44% higher than
the revenue for the same period of 2009 and revenue for the fiscal year
of 2010 was 3% higher than the revenue in fiscal 2009. The increase in
revenue is a result of greater use of DMDS for music video delivery by
the major labels and the independent sector. Revenue is expected to
continue to increase as billable US music audio and video deliveries
grow, independent sector usage increases, and billable advertising
delivery volumes rise.
Total operating expenses for the year ended December 31, 2010 increased
by 16% compared to the same period in fiscal 2009, primarily due to
recruiting costs and management changes, the addition of a new
advertising division and debenture interest. In the fourth quarter of
2010, management continued its cost cutting initiative through reducing
costs and increasing productivity by consolidating offices. The
Company also reduced its expenditures on consultants by terminating or
suspending certain engagements and restructuring compensation terms
with existing consultants that more closely link compensation to
results. The benefits of the Company's cost cutting measures will be
reflected in fiscal 2011.
As part of the Company's annual review for indications of impairment, it
determined there to be a reduction in value of $1,543,575 in its long
lived asset group, which includes patents, investment in technology and
deferred development costs. The Company believes that its cost savings
initiative and the recent restructuring of management will enhance the
Company's economic future.
Recent period highlights include a multi-year agreement with Viacom's
BET Networks to use YANGAROO's Digital Media Distribution System (DMDS)
technology for delivery of all artist and music-related audiovisual
content to BET properties, an agreement with the Academy of Country
Music to power online review and professional member voting for the
46th Annual Academy of Country Music Awards and receiving the grant of
Canada patent number 2,349,797 titled "Biometric Rights Management System". YANGAROO named advertising industry veteran Anthony G. Miller to the
board of directors and appointed former advertising executive Karen
Dealy to President of U.S. Advertising Operations.
"In the fourth quarter we made great strides in expanding our reach
beyond the music industry to the advertising industry. The revenue
growth in Q4 is just the beginning." said YANGAROO CEO Scott Wambolt.
"With music video revenues continuing to grow, and the advertising
rollout well underway, we expect revenue growth to continue and
Summary of operating results for the years and fourth quarters ended
Net loss for the period
Loss per share (basic & diluted)
The full text of the financial statements and Management Discussion &
Analysis is available at www.yangaroo.com and at www.sedar.com.
YANGAROO's patented Digital Media Distribution System (DMDS) is a
leading secure B2B digital delivery solution for the music and
advertising industries. DMDS replaces the physical distribution of
audio and video content for music, music videos, and advertising to
television, radio, media, retailers, award shows and other authorized
recipients with more accountable, effective, and far less costly
digital delivery of broadcast quality media via the Internet.
Named one of Canada's Top 100 Tech Companies for 2009 by Canadian
Business, YANGAROO has offices in Toronto, New York, Los Angeles, and
Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the
symbol YOO and in the U.S. under OTCBB: YOOIF.
The statements contained in this release that are not purely historical
are forward-looking statements and are subject to risks and
uncertainties that could cause such statements to differ materially
from actual future events or results. Such forward-looking statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this release.
SOURCE YANGAROO Inc.
For further information:
Scott Wambolt at 416-534-0607 ext.111 or visit www.yangaroo.com.