Destiny Media Technologies, Inc. Announces Second Quarter Fiscal Year 2016 Results

VANCOUVER, April 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 the second quarter ended February 29, 2016.

Highlights

Highlights during the second quarter include:

• Quarterly revenue increase 3% (YOY)
• Quarterly expenditures drop by 25% (YOY)
• Quarterly loss shrinks by 79% (YOY)
• Migration of Play MPE® system to a cloud computing platform

Second Quarter Results

Play MPE® revenue grew in Europe, USA and Australia for an overall increase of 1.4% or 8.5% after factoring in an unfavorable reduction in the Euro relative to the US dollar.  Clipstream began to see positive revenue increases.

Expenditures dropped by 25% due to a reduction in costs associated with restructuring, favorable exchange rates, and a reduction in director and officer compensation.

Net loss for the second quarter declined by 79% to ($75,383), or ($0.00) per share, versus a net loss of ($364,457), or ($0.01) during the prior year.  

"During the quarter we began to see the positive results from restructuring that took place in the prior year with revenues increasing and expenses declining. While Clipstream® is obviously at a very early commercial stage, the company saw progress in revenue in its hosted solution, enterprise plan, and market research clients, showing a 328% increase compared to the prior year's quarter," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies.  "With the technology restructure completed in the quarter, the Company can move forward with product design enhancements to grow revenue."

Second Quarter Fiscal 2016 Earnings Conference Call
Destiny Media Technologies will host a conference call at 4:30 p.m. ET (1:30pm PT) on April 14th, 2016, to further discuss its second quarter fiscal 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 # 74540260. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.

About Destiny Media Technologies, Inc. 
Destiny Media Technologies 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 an automated high availability self-serve video hosting service built around a proprietary Javascript playback system. This approach, which is protected by two dozen pending and granted patents is much more secure and flexible than standard video approaches. 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. It is protected by granted security and watermark patents. More information can be found at www.dsny.com.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
			(Expressed in United States dollars)
	Three Months	Three Months	Six Months	Six Months
	Ended	Ended	Ended	Ended
	February 29,	February 28,	February 29,	February 28,
	2016	2015	2016	2015
	$	$	$	$
Service revenue	763,897	743,193	1,611,618	1,698,263
Operating expenses
General and administrative	158,207	246,922	393,590	540,580
Sales and marketing	302,188	422,493	652,786	753,506
Research and development	331,722	411,282	650,762	775,251
Depreciation and amortization	53,196	38,998	103,025	74,783
	845,313	1,119,695	1,800,163	2,144,120
Loss from operations	(81,416)	(376,502)	(188,545)	(445,857)
Other income (expenses)
Interest income	6,033	12,045	12,155	25,091
Net loss	(75,383)	(364,457)	(176,390)	(420,766)
Foreign currency translation adjustments	(19,309)	(164,827)	(37,065)	(265,787)
Total comprehensive loss	(94,692)	(529,284)	(213,455)	(686,553)
Net loss per common share, basic and diluted	(0.00)	(0.01)	(0.00)	(0.01)

CONSOLIDATED BALANCE SHEETS
As at		(Expressed in United States dollars)
		February 29,	August 31,
		2016	2015
		$	$
ASSETS
Current
Cash and cash equivalents		673,008	387,316
	Accounts receivable, net of allowance for
	doubtful accounts of $7,018 [2015 – $6,129]	430,141	399,148
	Other receivables	35,671	15,471
	Current portion of long term receivable	102,830	98,180
Prepaid expenses		37,092	36,042
Total current assets		1,278,742	936,157
Deposits		22,241	32,222
	Long term receivable	113,830	167,350
	Property and equipment, net	403,126	401,461
Total assets		1,817,939	1,537,190
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable		167,075	139,879
Accrued liabilities		176,748	189,672
Deferred leasehold inducement		44,852	63,217
Deferred revenue		5,179	24,712
Obligation under capital lease – current portion		4,867	5,205
Total current liabilities		398,721	422,685
Obligation under capital lease – long term portion		9,075	12,071
Total liabilities		407,796	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
	[2015 – issued and outstanding 52,993,874 shares]	55,014	52,994
Additional paid-in capital		9,641,276	9,122,132
Accumulated deficit		(7,884,451)	(7,708,061)
Accumulated other comprehensive loss		(401,696)	(364,631)
Total stockholders' equity		1,410,143	1,102,434
Total liabilities and stockholders' equity		1,817,939	1,537,190

SOURCE Destiny Media Technologies, Inc.

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