Destiny Media Technologies, Inc Announces First Profitable Quarter Since Inception
Destiny Media Technologies Inc. (OTCBB: DSNY, Berlin: DME; 935 410) is pleased to announce that it has achieved fourth quarter net income of $108,846. Sales are 23% higher than the previous quarter and 182% higher than the same quarter in 2001. Revenue for the year increased from $345,643 in 2001 to $769,326 in 2002. The loss for the year fell from $1,556,869 (.06 per share) to $377,688 (.01 per share).
Steve Vestergaard, company CEO, comments on fiscal 2002, "We invested in establishing a sales distribution channel of 90 partners in 11 countries. This strategy is paying dividends as combined sales in Europe and Asia have increased from 9% of total sales in 2001 to 27% in 2002. As the partners become familiar with our product, pricing and sales cycle, we expect this international revenue stream to increase significantly.
We've grown revenues while reducing expenses 30% from fiscal 2001. We've focused on selling into the mature market verticals that are currently generating sales, while better supporting existing users. Most of our customers are renewing their annual license agreements, so revenue going forward is becoming much more predictable.
We've eliminated our long term debt and are in a strong position to improve shareholder value in fiscal 2003. During the quarter, Destiny divested itself of Wonderfall Productions, Inc., a wholly owned subsidiary, to concentrate on core business competencies. This transaction reduced the overall corporate long term debt on the consolidated statements from $185,343 to zero."
Because Clipstream™ plays almost instantly from within a web page and because it reaches almost three times the installed base of the player based solutions, it is well suited to replace static banner advertisements with the richness of thirty second television commercials playing from within the page or email. Many mainstream advertisers have run Clipstream ™ enabled campaigns. Examples include : Audi, BMW, CART (Championship Auto Racing Team), Disney, Electronic Arts, HBO, HMV, HSBC, IBM, ING Group, Land Rover, Mazda, Microsoft, Molsons, MGM, Sony, Stockhouse, Templeton, Tribute, Volkswagen, Volvo and Z100 (New York). Revenues are anticipated to increase as these advertisers move from small prototype test campaigns to large consumer campaigns.
The newest opportunities for the company include market research and distance education. Major online market research companies, such as Greenfieldonline, Openvenue and Target Rx are using Clipstream™ for online surveys and testing television commercials. Destiny has become a member of the elearningbc.com alliance and is exploring partnerships with a number of possible partners in the space.
Some of the new market verticals the company has achieved success at in the last year include advertising, online market research, and distance education.
In July, Destiny was approached to join a technology consortium led by Royal Roads University to build Clipstream™ authoring support into the e-learning LOGIC project (Learning Object Generator in Case Studies). In August the Canadian Federal Government announced that they would fund half of the $1.4 million initiative as part of Canarie (Canada's advanced Internet development organization). Other partners in the consortium include Telus and the Justice Institute of BC. This high profile initiative will assist Clipstream™ in gaining market share in the rapidly growing e-learning sector.
Destiny will be investing in an aggressive European marketing campaign to support the recently announced Berlin stock exchange listing in Q1 2003. This new listing combined with the increased distribution channels will create a higher level of European market awareness. The company is also launching the recently announced Pirate Radio retail product (http://www.pirateradio.com) this quarter. We do not expect to be profitable in Q1 2003 but expect to return to profitability in Q2.
Destiny Media Technologies, Inc. (http://www.dsny.com) is a leader in developing easy-to-use tools for distributing digital media through the Internet. The company's suite of streaming and downloadable products includes: Clipstream™, Destiny Media Player™, Radio Destiny™, Pirate Radio™ and MPE™. Established in 1991, the operating subsidiary, Destiny Software Productions, Inc. is headquartered in Vancouver, Canada.
For more information contact:
|Destiny Media Technologies, Inc.|
President & CEO
Destiny Media Technologies, Inc.
604-609-7736 ext. 222
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.