Destiny Media Technologies, Inc. Announces First Quarter Fiscal Year 2016 Results
VANCOUVER, Jan. 14, 2016 /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 cross-platform player-less video streaming format, today announced its financial results for its fiscal 2016 first quarter ended November 30, 2015.
Highlights
Highlights during and subsequent to the end of the first quarter include:
- Renewed Agreement with Universal Music Group for Use of its Play MPE® Distribution System
- Successfully Migrated the Play MPE® Digital Distribution System to the Cloud.
- Introduced the new Clipstream® Fall Release.
- Received six patent grants for JavaScript video and watermarking technologies.
- Expanded Clipstream® into Ad Tech Industry.
- Introduced server API (application program interface) for the Clipstream® cloud based streaming video hosting solution.
- Solidified the balance sheet with closing of $505,000 in a private placement
First Quarter Fiscal 2016 Results
Revenue for the quarter ended November 30, 2015 was $847,721 a decrease of 11.2% compared to the first quarter of 2014. The decrease in revenue was due primarily to the impact of a decline in value of the Euro relative to the US Dollar. Eliminating the negative impact of approximately $76,000 for the effect of foreign exchange rates, total revenue for the first quarter would have decreased by 3.2%.
During the first quarter 2016, revenue from the Play MPE® segment decreased 11.4 percent versus the same period last year, also due primarily to the negative impact of foreign exchange rates.
Net loss for the first quarter was ($101,007), or ($0.00) per share, versus a net loss of ($56,309), or ($0.00) during the prior year. The loss was primarily due to the effect of unfavorable exchange rates for the Euro and Australian dollar.
"We have had some exciting achievements over the last several months," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "The finalization of the Universal Music contract sets a solid revenue base for our Play MPE business going forward. We also recently completed the migration of our MPE digital distribution system to the cloud, which will result in cost savings and opportunity for new product offerings that should drive revenue growth in the future. Additionally, we are in the final stages of completing our Clipstream cloud offering, which should lead to opportunities for incremental growth on the Clipstream side of the business."
First Quarter Fiscal 2016 Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Thursday, January 14, 2016, to further discuss its first quarter fiscal year 2016 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 82895022. 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, 2014, which is available on www.sedar.com or www.sec.gov.
| CONDENSED CONSOLIDATED STATEMENTS OF |
|||
| (Expressed in United States dollars) |
|||
| Unaudited |
|||
| Three months ended November 30, |
|||
| 2015 |
2014 |
||
| $ |
$ |
||
| Service revenue |
847,721 |
955,070 |
|
| Operating expenses |
|||
| General and administrative |
235,383 |
293,658 |
|
| Sales and marketing |
350,598 |
331,013 |
|
| Research and development |
319,040 |
363,969 |
|
| Depreciation and amortization |
49,829 |
35,785 |
|
| 954,850 |
1,024,425 |
||
| Income (loss) from operations |
(107,129) |
(69,355) |
|
| Other income |
|||
| Interest income |
6,122 |
13,046 |
|
| Net loss |
(101,007) |
(56,309) |
|
| Other comprehensive loss, net of tax |
|||
| Foreign currency translation adjustments |
(17,756) |
(100,960) |
|
| Total comprehensive loss |
(118,763) |
(157,269) |
|
| Net loss per common share, basic and diluted |
(0.00) |
(0.00) |
|
| Weighted average common shares outstanding: |
|||
| Basic |
53,903,984 |
52,993,874 |
|
| Diluted |
53,903,984 |
52,993,874 |
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
| (Expressed in United States dollars) |
|||
| (unaudited) |
|||
| As at |
|||
| November 30, |
August 31, |
||
| 2015 |
2015 |
||
| $ |
$ |
||
| ASSETS |
|||
| Current |
|||
| Cash and cash equivalents |
642,028 |
387,316 |
|
| Accounts receivable, net of allowance for |
|||
| doubtful accounts of $5,985 [Aug 31, 2015 – $6,129] |
548,168 |
399,148 |
|
| Other receivables |
26,998 |
15,471 |
|
| Current portion of long term receivable |
101,004 |
98,180 |
|
| Prepaid expenses |
37,829 |
36,042 |
|
| Total current assets |
1,356,027 |
936,157 |
|
| Deposits |
22,521 |
32,222 |
|
| Long term receivable |
141,601 |
167,350 |
|
| Property and equipment, net |
412,479 |
401,461 |
|
| Total assets |
1,932,628 |
1,537,190 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current |
|||
| Accounts payable |
148,784 |
139,879 |
|
| Accrued liabilities |
201,837 |
189,672 |
|
| Deferred leasehold inducement |
53,933 |
63,217 |
|
| Deferred revenue |
14,711 |
24,712 |
|
| Obligation under capital lease – current portion |
4,828 |
5,205 |
|
| Total current liabilities |
424,093 |
422,685 |
|
| Obligation under capital lease – long term portion |
10,571 |
12,071 |
|
| Total liabilities |
434,664 |
434,756 |
|
| Commitments and contingencies |
|||
| Stockholders' equity |
|||
| Common stock, par value $0.001 |
|||
| Authorized: 100,000,000 shares |
|||
| Issued and outstanding: 55,013,874 shares |
|||
| [Aug 31, 2015 – issued and outstanding 52,993,874 shares] |
55,014 |
52,994 |
|
| Additional paid-in capital |
9,634,405 |
9,122,132 |
|
| Accumulated deficit |
(7,809,068) |
(7,708,061) |
|
| Accumulated other comprehensive loss |
(382,387) |
(364,631) |
|
| Total stockholders' equity |
1,497,964 |
1,102,434 |
|
| Total liabilities and stockholders' equity |
1,932,628 |
1,537,190 |
|
SOURCE Destiny Media Technologies, Inc.
Fred Vandenberg, CFO, Destiny Media Technologies, Inc., 604 609 7736 x236; Investor Relations: Three Part Advisors, Jeff Elliott, 972-423-7070; Dave Mossberg, 817-310-0051
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