VANCOUVER, July 17, 2012 /CNW/ - Destiny Media Technologies (TSXV: DSY)
(OTCQX: DSNY) is pleased to announce results for the quarter ending May
31, 2012. Revenues of $1,022,921 reflect a 14% increase from the prior
quarter, but a 13% decline from the prior year. The decline as
compared to the prior year quarter is attributable to the recognition
of a single revenue item included in a multi-year agreement that was
recognized in Q3-2011. European revenues increased 11% over the prior
year and currently represent 44% of our music distribution revenue.
Nine month revenue was approximately the same as in prior year.
Operating expenses for the quarter declined from $853,098 in the prior
year to $208,827. The decline is attributable to a gain on the
settlement of litigation in Australia. The company agreed to accept a
settlement with a value of approximately $859,000. The company will
receive the payment, which is secured by real estate and a general
security agreement, over six years. The outstanding balance attracts
10.25% interest and is recorded as a long term receivable. Litigation
costs during the period were significant. Over nine months, the
company spent approximately $607,000 on legal fees. This expense will
decline significantly in future quarters. R&D expenses increased 25%
over the prior year, reflecting increased investments in IP,
infrastructure and staffing to support the launch of our new
Clipstream® and Play MPE® products.
Net income increased 182% over the prior year to $651,138 ($.01 per
General and administrative
Sales and marketing
Research and development
Income from operations
Other income (expenses)
Interest and other expense
Income before income taxes
Income tax recovery (expense) - deferred
Net income (loss)
Net income (loss) per common share, basic and diluted
About Destiny Media Technologies, Inc.
Universal, EMI, Warner, Sony and one thousand other labels use Destiny's
secure distribution service to deliver their pre-release music to radio
and other trusted recipients. The company is launching a new cross
platform playerless streaming format that doesn't require streaming
servers and which reaches ten times as many viewers as other solutions
with the same bandwidth and infrastructure by reusing streams.
Publishers can reach smart phones, tablets, e-book readers and
computers from a standard web server without the cost of transcoding.