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

Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results  PR Newswire  VANCOUVER, April 10, 2014  VANCOUVER, April 10,  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 second quarter of fiscal 2014.  Highlights  Highlights during and subsequent to the end of the second quarter include:    *Launched the Clipstream video cloud service for commercial use   *Became the exclusive supplier of digital distribution services for Sony     Music Australia   *Received approval for our first watermarking technology patent in Europe   *Signed an agreement with Shazam to license digital fingerprints and     metadata to its servers  "This quarter marked a significant milestone  for our company with the  launch  of the Clipstream^®  video cloud service,"  said Steve Vestergaard,  President  and Chief Executive Officer  at Destiny Media  Technologies. "We believe  this  product has the  capability to disrupt  the $5 billion  dollar video  encoding  market. We continue to build  our sales and support  staff and as the  service  gains traction,  we have  the opportunity  to rapidly  grow our  revenues  and  profitability. We are making our Play MPE service more user friendly with  the  introduction of applications for  multiple devices and pursuing  opportunities  beyond music delivery."  Second Quarter Results  Service revenue for the  second quarter was  $810,682, versus $880,322  during  the prior year quarter. 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 affected  year over  year  revenue comparisons  during  the quarter,  it  is expected  to  facilitate  an  increase in usage and global expansion.  Net loss for the second quarter  was ($374,833), or ($0.01) per share,  versus  net income of $13,198, or $0.00 per diluted share, in the prior year  quarter.  This quarter's results include an expense  of $344,352 related to stock  based  compensation and  payouts made  for the  repurchase of  stock options  by  the  Company.  Excluding  this  expense,  net  loss  for  the  second  quarter  was  ($30,481), or ($0.00) per share, compared  to net income of $13,198, or  $0.00  per diluted share in the prior year quarter.  Second Quarter Earnings Conference Call  Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on  April 10,  2014, to  further discuss  its second  quarter fiscal  2014  results. Investors  and interested  parties  may participate  in the  call  by  dialing (416) 764-8688  or (888)  390-0546 and  referring to  conference ID  #  07868883. 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    Three     Six Months  Six Months                              Ended         Months       Ended       Ended                          February 28,      Ended      February    February                               2014      February 28,     28,        28,                                $            2013          2014        2013                                               $            $            $                                                                 Revenue                        810,682      880,322   1,733,223   1,944,189  Operating expenses General and                     526,166       198,340     769,665     389,597 administrative Sales and marketing            394,750      203,382      726,391     443,600 Research and                    268,362      457,080      532,846     857,432 development Amortization                    33,061        28,390       64,408      56,046                              1,222,339       887,192    2,093,310   1,746,675 Income (loss) from           (411,657)      (6,870)   (360,087)     197,514 operations Other income Interest income                 15,824        20,068      32,647      40,734 Income (loss) before         (395,833)        13,198   (327,440)     238,248 income taxes Income tax recovery             21,000            —     (3,000)   (65,000) (expense) - deferred Net Income (loss)            (374,833)        13,198   (330,440)     173,248  Other comprehensive income (loss), net of tax Foreign currency             (140,131)      (77,448)   (154,681)    (82,964) translation adjustments                                                                 Total comprehensive           (514,964)     (64,250)    (485,121)     90,284 income (loss)  Net income (loss) per common share,  basic and diluted             (0.01)         0.00       (0.01)        0.00                                                                 Destiny Media Technologies, Inc.                          CONSOLIDATED BALANCE SHEETS                      (Expressed in United States dollars)                                   Unaudited                                                     February 28, August 31,                                                             2014          2013                                                                $            $  ASSETS Current Cash and cash equivalents                               870,939     1,521,552 Accounts receivable, net of allowance for doubtful accounts of $3,143 [August 31, 2013 - $11,392]                                                616,665       419,697 Other receivables                                        73,852        16,636 Current portion of long term receivable                 105,077       99,649 Prepaid expenses                                         42,093        29,653 Deposits                                                 22,355        35,611 Deferred tax assets - current portion                   130,000       130,000 Total current assets                                  1,860,981     2,252,798 Long term receivable                                    387,900      440,889 Property and equipment, net                             262,902       234,969 Deferred tax assets - long term portion                 726,000       729,000 Total assets                                          3,237,783     3,657,656  LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable                                        159,824        79,622 Accrued liabilities                                     317,625       221,720 Deferred leasehold inducement                                 —        2,892 Deferred revenue                                          5,528        70,415 Total liabilities                                       482,977       374,649 Commitments and contingencies Stockholders' equity Common stock, par value $0.001 Authorized: 100,000,000 shares Issued and outstanding: 52,680,845 shares [August 31, 2013 - issued outstanding 51,981,964 shares]                                       52,681        51,982 Additional paid-in capital                            8,885,605     8,929,384 Accumulated deficit                                 (6,117,456)   (5,787,016) Accumulated other comprehensive income (loss)          (66,024)        88,657 Total stockholders' equity                            2,754,806     3,283,007 Total liabilities and stockholders' equity            3,237,783    3,657,656                                                                 Destiny Media Technologies, Inc.                   REG G RECONCILIATION OF NON-GAAP MEASURES  Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA                                         Three Months      Three Months                                            Ended February       Ended February                                                  28, 2014             28, 2013                                                        Net (loss) income                         ($374,833)           $13,198 (Benefit) provision for income             ($21,000)                $0 taxes Interest (income) expense                  ($15,824)         ($20,068) Depreciation and amortization                $33,061           $28,390 expense Share-based compensation                    $344,352                $0 Adjusted EBITDA                            ($34,244)           $21,520    SOURCE Destiny Media Technologies, Inc.  Contact:  Fred Vandenberg CFO, Destiny Media Technologies, Inc. 604 609 7736 x236  Investor Relations: Dave Mossberg Three Part Advisors 817-310-0051  
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