YANGAROO Reports Continued Revenue Growth in 2008



    
    Sixth Consecutive Year of Revenue Growth; U.S. Deliveries Increase By
    60% Over 2007
    

    TORONTO, April 30 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the
industry's leading secure digital media distribution company, today announced
its results for the year and fourth quarter ended December 31, 2008. YANGAROO
achieved its sixth consecutive year of revenue growth in the year, reporting a
10% increase in revenue (which excludes interest income) over fiscal 2007.
Cash and cash equivalents were $3,030,000 at December 31, 2008, representing
over a year of funds on hand.
    Highlights from 2008 included allowance of the company's US patent
application No. 10/431,854 titled Content Distribution System and Method, 60%
growth in U.S. delivery volume to surpass 2 million, 120% growth in Canadian
deliveries, development of the new industry-leading Digital Media Distribution
System (DMDS) 5.0 platform, launch of the ecommerce portal DMDSDirect to
expand market reach into the independent music sector, registering the 2,000th
U.S. radio station on DMDS, integration of DMDS with leading radio station
automation systems iMediaTouch, MusicMaster and Powergold, extending
agreements with Universal and Warner Music Canada and powering the JUNO Awards
for the Canadian Academy of Recording Arts and Sciences (CARAS) with DMDS 5.0.
    "Adoption of DMDS in the North American record and radio industries
continued at a rapid pace," said YANGAROO's President and CEO John Heaven.
"The significant growth in both U.S. and Canadian usage of DMDS illustrates
that it is becoming an indispensable tool for the music industry. Despite the
economic downturn in 2008, our revenues increased for the sixth consecutive
year. Growth in independent music sector revenues led this vibrant group to
account for approximately half of our revenues. While the onset of the
recession appeared to dampen the rate of revenue growth in the last half of
2008, we expect that the achievements of 2008 will drive increased revenue
growth through 2009."
    Approximately half of the increase in the loss for the year was due to an
increase in amortization expenses and reduced interest income. The remainder
of the increase was primarily due to planned increases in operating expenses
that were related to the development of DMDS 5.0 and the enforcement and
expansion of YANGAROO's intellectual property rights. These operating expenses
remained under the budget target for the year and are being reduced as
development of DMDS 5.0 is completed. The loss for the fourth quarter of 2008
was lower by 11% compared to the same period last year as salaries and
consulting costs decreased by 22% in the fourth quarter.
    Summary of operating results for the years and fourth quarters ended
December 31:

    
    -------------------------------------------------------------------------
              $CDN                     Year                 4th Quarter
    -------------------------------------------------------------------------
                                 2008        2007        2008        2007
    -------------------------------------------------------------------------
    Revenue                      578,813     524,956     138,024     137,650
    -------------------------------------------------------------------------
    Interest income              139,230     280,757      17,660      70,348
    -------------------------------------------------------------------------
    EBITDA                    (2,885,125) (2,573,990)   (648,929)   (803,358)
    -------------------------------------------------------------------------
    Net loss for the period   (3,264,043) (2,665,159)   (760,455)   (851,610)
    -------------------------------------------------------------------------
    Loss per share (basic &
     diluted)                       (.04)       (.04)       (.01)       (.01)
    -------------------------------------------------------------------------
    

    The full text of the financial statements and Management Discussion &
Analysis is available at www.yangaroo.com and at www.sedar.com.

    About YANGAROO:

    YANGAROO's patented Digital Media Distribution System (DMDS) is a leading
secure B2B digital delivery solution for the music and advertising industries.
DMDS is a web-based delivery system that pioneers secure digital file
distribution by incorporating biometrics, high-value encryption and
watermarking. DMDS replaces the physical distribution of musical recordings
and advertising to radio, media, retailers and other authorized recipients
with more accountable, effective, and far less costly digital delivery of
broadcast quality media via the Internet.
    YANGAROO's DMDS has made over six million deliveries of over 21,000 songs
from more than 600 record labels to destinations which include radio stations
representing over 35 U.S. broadcast chains. U.S. record labels made over 2
million deliveries of songs via DMDS in 2008. DMDS is the only system that can
digitally deliver music across the U.S., Canada and the U.K.

    YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K.
YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and
in the U.S. under OTCBB:YOOIF. For further information, please contact John
Heaven at 905-763-3553 or visit www.yangaroo.com.

    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.

    %SEDAR: 00018809E




For further information:

For further information: Matthew Caldecutt, Gina Preoteasa, Trylon SMR,
(212) 725-2295, matthew@trylonsmr.com, gina@trylonsmr.com

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