Destiny Media Technologies, Inc. Announces Fiscal 2013 Third Quarter Results

VANCOUVER, July 15, 2013 /CNW/ - Destiny Media Technologies (TSXV: DSY) (OTCQX: DSNY), the global standard for the secure distribution of pre-release music to radio and the developer of a new cross-platform player-less video streaming format, today announced its financial results for the third quarter and nine-month period ended May 31, 2013. Net income for the third quarter was $26,595, or $0.00 per diluted share, versus net income of $651,138, or $0.01 per diluted share, in the prior year quarter. The prior year's results were aided by a $694,000 net recovery of litigation costs that did not recur this year. Net income for the nine-month period was $199,843 versus $377,446 in the previous nine-month period.

Revenue for the third quarter was $873,866 versus $1,022,921 in the prior year quarter. For the nine-month period, revenue decreased 7.4 percent to $2,818,055.  The decrease in revenue from Play MPE^®, which represents approximately 96 percent of third quarter and year-to-date revenue, was primarily related to a change in contractual terms with a significant customer and consolidation within the record label industry.

"As expected, our third quarter revenue was affected due to a change in contractual terms with a major Play MPE customer. However, usage among this customer, as well as other major and independent record labels increased during the quarter, particularly in the United States and Scandinavia," said Steve Vestergaard, Chief Executive Officer of Destiny Media Technologies. "With greater incentive to increase long-term usage, our significant customer is beginning to expand into new territories. As we establish beachheads in these new markets, we expect this to drive greater usage among the other majors and independent labels, as well as more favorable revenue comparisons."

"We continue to make progress towards the launch of our Clipstream^® video cloud system. This product should be available during the first quarter of fiscal 2014."

Third Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 1:00 p.m. EDT (10:00am PDT) on July 16, 2013, to further discuss its third quarter results. Investors and interested parties may participate in the call by dialing [phone] or [phone] and referring to conference ID #52236938. 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 (TSX:DSY, OTC: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 99% cost savings by reducing the use of transcoding, infrastructure and bandwidth.  Play MPE® (www.plaympe.com) provides a standardized method to securely and cost effectively distributes 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, 2012, which is available on www.sedar.com or www.sec.gov.

Destiny Media Technologies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in United States dollars)
Unaudited
	Three Months Ended			Nine Months Ended
	May 31,	May 31,		May 31,	May 31,
	2013	2012		2013	2012
Revenue	$873,866	$1,022,921		$2,818,055	$3,042,363
Operating expenses
General and administrative	285,857	(469,548)		675,454	439,574
Sales and marketing	207,492	162,146		651,092	554,816
Research and development	336,083	492,041		1,193,515	1,456,435
Amortization	28,746	24,248		84,792	54,987
	858,178	208,887		2,604,853	2,505,812
Income from operations	15,688	814,034		213,202	536,551
Other income (expenses)
Other income	—	4,462		—	4,462
Interest income	18,907	22,648		59,641	27,619
Interest and other expense	—	(6)		—	(1,186)
Income before income taxes	34,595	841,138		272,843	567,446
Income tax expense - deferred	8,000	190,000		73,000	190,000
Net Income	26,595	651,138		199,843	377,446
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(13,465)	(44,320)		(96,429)	(63,174)
Total comprehensive income	13,130	606,818		103,414	314,272
Net income per common share,
basic and diluted	0.00	0.01		0.00	0.01
Weighted average common shares outstanding:
Basic	51,961,922	51,881,309		52,021,101	50,955,546
Diluted	52,651,928	52,663,722		52,703,717	51,362,308

Destiny Media Technologies, Inc.
CONDENSED CONSOLIDATED BALANCED SHEETS
(Expressed in United States dollars)
Unaudited
		May 31, 2013		August 31, 2012
ASSETS
Current
Cash and cash equivalents		$1,225,754		$1,275,423
Accounts receivable, net of allowance for   doubtful accounts of $11,605 [August 31, 2012 - $6,053]		603,509		440,053
Other receivables		13,686		48,508
Current portion of long term receivable		105,062		104,056
Prepaid expenses		32,990		27,059
Deferred tax assets - current portion		258,000		258,000
Total current assets		2,239,001		2,153,099
Deposits		36,279		37,847
Long term receivable		504,841		625,098
Property and equipment, net		242,720		287,958
Deferred tax assets - long term portion		616,000		689,000
Total assets		3,638,841		3,793,002
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable		59,796		199,930
Accrued liabilities		225,374		250,623
Deferred leasehold inducement		7,364		5,843
Deferred revenue		59,775		55,671
Total liabilities		352,309		512,067
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
	Issued and outstanding: 51,961,922 shares   [August 31, 2012 - issued and outstanding 52,091,004 shares]	51,962		52,091
Additional paid-in capital		8,911,269		9,008,957
Accumulated Deficit		(5,813,187)		(6,013,030)
Accumulated other comprehensive income		136,488		232,917
Total stockholders' equity		3,286,532		3,280,935
Total liabilities and stockholders' equity		3,638,841		3,793,002

SOURCE: Destiny Media Technologies, Inc.

Contacts:
Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236

Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051