DESTINY MEDIA TECHNOLOGIES INC. 
By VANCOUVER, Jan. 14, 2014 /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 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 (416) 764-8688 or (888) 390-0546 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.
