DESTINY MEDIA TECHNOLOGIES INC. VANCOUVER, Jan. 14, 2016 /PRNewswire/ - 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
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(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.
