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

Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results 
VANCOUVER, April 10, 2014 /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 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         Three     Six Months    Six Months
                       Months        Months       Ended         Ended
                        Ended         Ended       February   February 28, 
                    February 28,  February 28,     28,           2013
                        2014          2013         2014           $
                          $             $            $
                                                             
    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             394,750       203,382     726,391        443,600
    marketing
    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)       (411,657)       (6,870)   (360,087)        197,514
    from operations
    Other income
    Interest               15,824        20,068      32,647         40,734
    income 
    Income (loss)
    before income       (395,833)        13,198   (327,440)        238,248
    taxes
    Income tax
    recovery               21,000       —     (3,000)       (65,000)
    (expense) -
    deferred
    Net Income          (374,833)        13,198   (330,440)        173,248
    (loss)
     
    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            (0.01)          0.00      (0.01)           0.00
    diluted
                               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          (66,024)        88,657
    (loss)
    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                  ($21,000)                   $0
    income taxes
    Interest (income) expense                ($15,824)            ($20,068)
    Depreciation and                           $33,061              $28,390
    amortization expense
    Share-based compensation                  $344,352                   $0
    Adjusted EBITDA                          ($34,244)              $21,520



SOURCE  Destiny Media Technologies, Inc. 
Fred Vandenberg CFO, Destiny Media Technologies, Inc. 604 609 7736 x236 
Investor Relations: Dave Mossberg Three Part Advisors 817-310-0051 
To view this news release in HTML formatting, please use the following URL: 
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CO: Destiny Media Technologies, Inc.
ST: British Columbia
NI: SOF ERN  
-0- Apr/10/2014 20:01 GMT
 
 
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