Destiny Media Technologies, Inc. Announces First Quarter Fiscal 2014 Results

VANCOUVER, Jan. 14, 2014 /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 new cross-platform player-less video streaming format, today announced its financial results for the first quarter of fiscal 2014.

Net income for the first quarter was $44,393, or $0.00 per diluted share, versus net income of $160,050, or $0.00 per diluted share, in the prior year quarter. Service revenue for the first quarter was $922,541, versus $1,063,867 during the prior year quarter. Service revenue grew by 7% over the fourth quarter in fiscal 2013. As previously discussed, the year-over-year decrease in revenue was primarily related to a multi-year renewal of agreements with the Company's largest customer.  While the renewal temporarily affected revenue during the quarter, it is expected to facilitate an increase in usage and global expansion.

"We introduced our Clipstream^® video cloud service with a soft launch at the end of the first quarter," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "This marks a significant milestone for the company and we believe Clipstream® has the potential to change the way video is delivered over the Internet."

First Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 14, 2014, to further discuss its fourth quarter and fiscal 2013 results. Investors and interested parties may participate in the call by dialing [phone] or [phone] and referring to conference ID # 02343908. 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, 2013, which is available on www.sedar.com or www.sec.gov.

Destiny Media Technologies, Inc.
CONDENSED STATEMENT OF OPERATIONS
(Expressed in United States dollars)
Unaudited
			Three months ended November 30,
			2013	2012
			$	$
Service revenue			922,541	1,063,867
Operating expenses
General and administrative			243,499	191,257
Sales and marketing			331,641	240,218
Research and development			264,484	400,352
Depreciation and amortization			31,347	27,656
			870,971	859,483
Income from operations			51,570	204,384
Other income (expenses)
Interest income			16,823	20,666
Interest and other expense			—	—
Income before provision for income taxes			68,393	225,050
Deferred income tax recovery (expense)			(24,000)	(65,000)
Net income			44,393	160,050
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments			(14,550)	(5,516)
Total comprehensive income (loss)			29,843	154,534

Destiny Media Technologies, Inc.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Unaudited
					November 30,			August 31,
					2013			2013
					$			$
ASSETS
Current
Cash and cash equivalents					1,458,487			1,521,552
Accounts receivable, net of allowance for doubtful accounts of $8,495 [August 31, 2013 - $11,392]					594,012			419,697
Other receivables					7,517			16,636
Current portion of long term receivable					104,217			99,649
Prepaid expenses					42,350			29,653
Deferred tax assets - current portion					130,000			130,000
Total current assets					2,336,583			2,217,187
Deposits					23,495			35,611
Long term receivable					422,426			440,889
Property and equipment, net					280,186			234,969
Deferred tax assets - long term portion					705,000			729,000
Total assets					3,767,690			3,657,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable					142,990			79,622
Accrued liabilities					248,151			221,720
Deferred leasehold inducement					—			2,892
Deferred revenue					40,880			70,415
Total liabilities					432,021			374,649
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
	Issued and outstanding: 52,021,353 shares
		[August 31, 2013 - issued outstanding 51,981,964 shares]			52,021			51,982
Additional paid-in capital					8,952,164			8,929,384
Accumulated Deficit					(5,742,623)			(5,787,016)
Accumulated other comprehensive income					74,107			88,657
Total stockholders' equity					3,335,669			3,283,007
Total liabilities and stockholders' equity					3,767,690			3,657,656

 

SOURCE: Destiny Media Technologies, Inc.

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

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