US Deliveries Triple in Period; Independent Sector Revenues Grow 51%
TORONTO, Nov. 29 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the
industry's leading secure digital media distribution company, today announced
its results for the nine months and quarter ended September 30, 2007. Revenues
(which exclude interest income) for the nine month period ended September 30,
2007 were 27% higher than for the same period in 2006. The loss for the nine
months increased 12%, but remained below the company's budget target. The
company's liquidity position remained strong and above plan with $6,925,000
cash on hand and total liabilities of $217,000 at the quarter end.
In the US market, the adoption of YANGAROO's Digital Media Distribution
System (DMDS) accelerated through the first three quarters, as the number of
deliveries made via DMDS in the US rose to 846,000 by the end of September.
The number of US deliveries in the nine month period was more than triple
those made in the same period of 2006. The company made 211,000 US deliveries
in the month of October alone, of which over 60% were made by major US labels.
This October volume is more than double the volume for the entire first half
In Canada, YANGAROO's DMDS remained the de-facto standard for B2B
(business to business) digital delivery of new music files for the record and
radio industry. No competitor's system was in commercial use at any major
record label in Canada to date in 2007. EMI, Sony BMG, Universal and Warner
Music Canada were all using DMDS commercially and independent sector use
continued to expand. Revenues from the Canadian and US independent sector for
the nine month period increased 51% over the same period last year.
"It is clear that the US music industry is coming to rely on DMDS as an
essential tool for distribution of promotional releases, just as the industry
did in Canada. We are now working closely with US major labels to monetize
their growing usage of DMDS," said YANGAROO President & CEO John Heaven. "The
increase in revenues for the third quarter is very encouraging as it included
the traditionally slow July and August period for music releases. Planned
increases in human resources combined with patent enforcement costs led to
higher expenses in the period, however total expenses remained under budget."
The company continued to make headway with its second US patent
application, as the US patent examiner has not issued rejections in reliance
on any of the prior art listed by a competitor as being relevant to the
application, and in November dismissed as improper a submission made by the
Summary of operating results for the nine months and quarter ended
September 30, 2007 ($Cdn):
Nine Months Quarter
2007 2006 2007 2006
---- ---- ---- ----
Revenue 387,306 305,701 133,858 106,465
Interest income 210,408 11,916 78,210 5,789
EBITDA (1,770,633) (1,433,781) (633,265) (455,361)
Net loss for the period (1,813,550) (1,624,182) (652,295) (524,314)
Loss per share
(basic & diluted) (0.03) (0.05) (0.01) (0.02)
The full text of the financial statements and Management Discussion &
Analysis is available at www.yangaroo.com and at www.sedar.com.
In further news, the board of directors of YANGAROO has granted three
external directors 25,000 options each with an exercise price of $0.13 and
expiry date of November 27, 2012. The board of directors has adopted a policy
of setting option exercise prices at the greater of the three month weighted
average trading price and the closing price on the day before the grant.
YANGAROO's DMDS has made over four million deliveries of over
11,000 songs from more than 500 record labels to destinations which include
radio stations representing over 35 US broadcast chains such as CBS/Infinity,
Citadel, Clear Channel, Cox, Cumulus, Emmis, EntreVision, Entercom, Federated
Media, Sirius, Journal, DMX, Jones Radio, AOL, Music Choice, Radio One, Salem
Communications, Univision, Westwood One, Regent, Premiere Radio, Next Media,
XM Satellite Radio, Waitt Media and many others. DMDS is the only system that
can deliver music across the US, Canada and the UK.
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 has
offices in Toronto, New York, Los Angeles, and London, UK. 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, President
and CEO of YANGAROO Inc. 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.
For further information:
For further information: PR Contact for YANGAROO: Beth Shechner or
Tiffany Guarnaccia, Trylon SMR, New York, (212) 725-2295, email@example.com