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

Vancouver, BC – July 14, 2014 – 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 third quarter of fiscal 2014 ended May 31, 2014.


  •          3Q FY14 revenue increased eight percent year over year to $942,472, and 16 percent sequentially from 2Q FY14
  •          3Q FY14 net income of $80,100 versus $26,595 during 3Q FY13
  •          3Q FY14 operating cash flow of $148,597 during the quarter
  •         Licensing agreement to transmit digital fingerprints and meta data to Shazam
  •         Commenced service as exclusive supplier of digital distribution services to Sony Music Entertainment Australia
  •         Chargeable transactions with Universal Music Group grew by 83% and exceeded the global commitment two of three months during the quarter

“We saw meaningful revenue traction in our Play MPE business this quarter and continue to take a disciplined approach to adding sales, marketing and development resources to the enhancement and new service offerings of our Clipstream® video cloud service,” said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. “To further accelerate the growth of our Play MPE business, we are developing a web based encoder to allow for a more user friendly experience, and pursuing opportunities to expand Play MPE into content segments beyond music delivery.”

“Continued expansion of Play MPE® use within the U.S. independent music sector was a key contributor to the growth in third quarter revenue. This segment has experienced growth in 23 of the last 24 comparable quarters. Also, in two months during the quarter, our largest major label customer exceeded their level of committed usage. Continued growth in usage from this customer will now drive Play MPE® revenue going forward,” said Fred Vandenberg, Chief Financial Officer of Destiny Media Technologies. “Through our licensing agreement with Shazam, we have simplified the process for the labels to introduce new music, and have strengthened Play MPE’s position as the industry’s leading secure delivery of pre-release music.” 

Third Quarter Results

Service revenue for the third quarter of 2014 increased eight percent to $942,472, versus $873,866 during the prior year quarter. On a sequential basis, revenue increased 16 percent from the second quarter of fiscal 2014. The increase in revenue was primarily related to increased usage by U.S. independent labels and in Australia, as well as a more favorable exchange rate versus the Euro.

Net income for the third quarter was $80,100, or $0.00 per diluted share, versus net income of $26,595, or $0.00 per diluted share, in the prior year quarter.

Cash and cash equivalents on hand at the end of the third quarter was $1,038,930 versus $870,939 at the end of the second quarter. The company generated $148,597 of operating cash flow during the third quarter.

Third Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 14, 2014, to further discuss its third 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 # 03977398. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at 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 ( 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 

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 or 


Destiny Media Technologies, Inc.


(Expressed in United States dollars)



                                                                                       Three Months      Three Months           Nine Months        Nine Months

                                                                                             Ended                  Ended                      Ended                  Ended

                                                                                           May 31,               May 31,                  May 31,               May 31,

                                                                                              2014                    2013                        2014                    2013

                                                                                                 $                          $                              $                          $


Revenue                                                                               942,472               873,866                2,675,695            2,818,055


Operating expenses

General and administrative                                                    271,855               285,857                1,041,520               675,454

Sales and marketing                                                              330,830               207,492                1,057,221               651,092

Research and development                                                    237,790               336,083                   770,636            1,193,515

Amortization                                                                           39,655                 28,746                   104,063                 84,792

                                                                                              880,130               858,178                2,973,440            2,604,853

Income (loss) from operations                                             62,342                 15,688                 (297,745)              213,202

Other income

Interest income                                                                        14,758                 18,907                     47,405                 59,641

Income (loss) before income taxes                                       77,100                 34,595                 (250,340)              272,843

Income tax recovery (expense) - deferred                                 3,000                  (8,000)                                         (73,000)

Net Income (loss)                                                                  80,100                 26,595                 (250,340)              199,843


Other comprehensive income (loss), net of tax

Foreign currency translation adjustments                                75,804                (13,465)                  (78,877)               (96,429)


Total comprehensive income (loss)                                    155,904                 13,130                 (329,217)              103,414


Net income (loss) per common share,

  basic and diluted                                                                     0.00                     0.00                      (0.00)                     0.00

Destiny Media Technologies, Inc.


(Expressed in United States dollars)





                                                                                                                               May 31,               August 31,

                                                                                                                                      2014                          2013

                                                                                                                                         $                                $




Cash and cash equivalents                                                                                    1,038,930                  1,521,552

Accounts receivable, net of allowance for
doubtful accounts of $
5,535 [August 31, 2013 – $11,392]                                 486,165                     419,697

Other receivables                                                                                                       67,613                       16,636

Current portion of long term receivable                                                                    112,205                       99,649

Prepaid expenses                                                                                                       33,962                       29,653

Deposits                                                                                                                     22,962                       35,611

Deferred tax assets – current portion                                                                       130,000                     130,000

Total current assets                                                                                            1,891,837                  2,252,798

Long term receivable                                                                                                374,643                     440,889

Property and equipment, net                                                                                    315,126                     234,969

Deferred tax assets – long term portion                                                                   729,000                     729,000

Total assets                                                                                                          3,310,606                  3,657,656




Accounts payable                                                                                                     102,526                       79,622

Accrued liabilities                                                                                                    202,207                     221,720

Deferred leasehold inducement                                                                                                                  2,892

Deferred revenue                                                                                                       31,100                       70,415

Total liabilities                                                                                                        335,833                     374,649

Commitments and contingencies

Stockholders’ equity

Common stock, par value $0.001

Authorized: 100,000,000 shares

Issued and outstanding: 52,865,173 shares
[August 31, 2013 – issued outstanding 51,981,964
shares]                                52,865                       51,982

Additional paid-in capital                                                                                      8,949,484                  8,929,384

Accumulated deficit                                                                                             (6,037,356)                (5,787,016)

Accumulated other comprehensive income                                                                  9,780                       88,657

Total stockholders’ equity                                                                                  2,974,773                  3,283,007

Total liabilities and stockholders’ equity                                                          3,310,606                  3,657,656


Destiny Media Technologies, Inc.


Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA



 Three Months Ended May 31, 2014


Three Months Ended May 31, 2013

Net (loss)income




(Benefit) provision for income taxes




Interest (income) expense




Depreciation and amortization expense




Adjusted EBITDA






Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236

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