VANCOUVER, April 16, 2018 /CNW/ - Destiny Media Technologies
(TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based
SaaS solution for digital asset management in the music industry,
today announced financial results for its second quarter ended
February 28, 2018.
Highlights
Highlights for the quarter include:
- Beta release of Play MPE Version 8,
- Revenue growth of 4.2%,
- 12% reduction in expenditures,
- First positive EBITDA and net income in the Company's
historically slow second quarter in five years.
Second Quarter Fiscal 2018 Results
Revenue for the quarter ended February
28, 2018 grew by 4.2% to $815,055 over the same quarter in the previous
year. This growth is primarily due to favorable exchange
rates and the growth in US independent record labels. Combined with
a 12% decrease in overall operating expenditures, to $749,390, the Company had positive income in its
seasonally weakest quarter for the first time in the last five
years.
"We are developing critical product updates to Play MPE,
including the beta launch of version 8 this quarter," said
Fred Vandenberg, Chief Executive
Officer for Destiny Media Technologies, "The great feedback we're
seeing from the beta gives us confidence that these product
updates, along with expected investments in a stronger business
development and sales team, will allow us recapture lost customers,
expand to new territories, and return to stronger revenue
growth."
Destiny Media
Technologies Inc.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
|
(Expressed in United
States dollars)
|
Unaudited
|
|
|
|
|
|
|
Three
months
|
Three
months
|
Six
months
|
Six months
|
|
ended
|
ended
|
ended
|
ended
|
|
February
28,
|
February
28,
|
February
28,
|
February
28,
|
|
2018
|
2017
|
2018
|
2017
|
|
$
|
$
|
$
|
$
|
Revenue
|
815,055
|
781,878
|
1,788,853
|
1,674,107
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
General and
administrative
|
160,218
|
203,922
|
304,052
|
375,424
|
Sales and
marketing
|
259,408
|
269,144
|
531,494
|
533,205
|
Research and
development
|
304,274
|
339,276
|
601,488
|
654,699
|
Depreciation and
amortization
|
25,490
|
41,612
|
51,187
|
83,490
|
|
749,390
|
853,954
|
1,488,221
|
1,646,818
|
Income from
operations
|
65,665
|
(72,076)
|
300,632
|
27,289
|
Other
income
|
|
|
|
|
Interest
income
|
1,704
|
3,871
|
4,029
|
8,634
|
Other income
(expense)
|
7
|
-
|
(3,795)
|
-
|
Net
income
|
67,376
|
(68,205)
|
300,866
|
35,923
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
Foreign currency
translation adjustments
|
11,107
|
19,238
|
(41,009)
|
(14,131)
|
|
|
|
|
|
Total
comprehensive income (loss)
|
78,483
|
(48,967)
|
259,857
|
21,792
|
|
|
|
|
|
Net income (loss)
per common share,
|
|
|
|
|
|
basic and
diluted
|
0.00
|
(0.00)
|
0.01
|
0.00
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
55,013,874
|
55,013,874
|
55,013,874
|
55,013,874
|
Destiny Media
Technologies Inc.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Expressed in United
States dollars)
|
Unaudited
|
As at,
|
February
28,
|
August 31,
|
|
2018
|
2017
|
|
$
|
$
|
|
|
|
ASSETS
|
|
|
Current
|
|
|
Cash and cash
equivalents
|
1,623,131
|
1,342,956
|
Accounts receivable,
net of allowance for
|
|
|
|
doubtful accounts of
$5,324 [August 31, 2017 – $3,383]
|
525,603
|
529,666
|
Other
receivables
|
81,671
|
21,216
|
Current portion of
long term receivable
|
0
|
64,811
|
Prepaid
expenses
|
52,625
|
54,507
|
Deposits
|
580
|
592
|
Total current
assets
|
2,283,610
|
2,013,748
|
Deposits
|
27,360
|
27,923
|
Property and
equipment, net
|
191,532
|
116,208
|
Intangible assets,
net
|
57,149
|
86,824
|
Total
assets
|
2,559,651
|
2,244,703
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
|
|
|
Accounts
payable
|
142,648
|
127,444
|
Accrued
liabilities
|
173,602
|
192,433
|
Deferred leasehold
inducement
|
52,149
|
2,090
|
Deferred
revenue
|
7,329
|
23,685
|
Obligation under
capital lease – current portion
|
2,992
|
6,246
|
Total current
liabilities
|
378,720
|
351,898
|
Total
liabilities
|
378,720
|
351,898
|
|
|
|
Stockholders'
equity
|
|
|
Common stock, par
value $0.001
|
|
|
|
Authorized:
100,000,000 shares
|
|
|
|
Issued and
outstanding: 55,013,874 shares
|
|
|
|
|
[August 31, 2017 –
issued and outstanding 55,013,874 shares]
|
55,014
|
55,014
|
Additional paid-in
capital
|
9,740,482
|
9,712,213
|
Accumulated
deficit
|
(7,306,665)
|
(7,607,531)
|
Accumulated other
comprehensive (loss)
|
(307,900)
|
(266,891)
|
Total
stockholders' equity
|
2,180,931
|
1,892,805
|
Total liabilities
and stockholders' equity
|
2,559,651
|
2,244,703
|
Second Quarter Fiscal 2018 Earnings Conference Call
Destiny Media Technologies will host a conference call at
5:00 p.m. ET (2:00pm PT) on Monday,
April 16, 2018, to further discuss its first quarter fiscal
year 2018 results. Investors and interested parties may participate
in the call by dialing 416-764-8688 or 888-390-0546 and referring
to conference ID # 75835004. 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 ("Destiny") provides software as
service (SaaS) solutions to businesses in the music industry
solving critical problems in distribution and promotion. The core
service, Play MPE® (www.plaympe.com), provides promotional music
marketing to engaged networks of decision makers in radio, film,
TV, and beyond.
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 for the
fiscal year ended August 31, 2017,
which is available on www.sedar.com or www.sec.gov.
View original
content:http://www.prnewswire.com/news-releases/destiny-media-technologies-inc-announces-second-quarter-fiscal-year-2018-results-300630022.html
SOURCE Destiny Media Technologies, Inc.