Destiny Media Technologies, Inc. Provides Q3 Results
Vancouver B.C. – July 13, 2006 – Destiny Media Technologies (BB:DSNY.OB) is pleased to announce third quarter financials results.
For the quarter ended May 31, 2006, revenue of $278,520 represented an increase of 24% from the quarter ending February 28, 2006, 53% from the quarter ending November 30, 2006 and 80% over the same quarter in fiscal 2005. The net loss was reduced 83% from the previous quarter to $28,437.
The revenue increase is the result of a number of items including a 36% increase to the Promo Only™ MPE™ access and delivery fees from the second quarter of fiscal 2006. Revenues per label will remain small until the labels are able to stop sending physical CD’s, but we have been increasing the number of labels on contract. We also began using the MPE™ system to deliver music digitally to jukeboxes.
We experienced an increase of 55% in revenue from our Clipstream™ suite of products in the third quarter ending May 31, 2006 from the quarter ending February 28, 2006. The increase is due in part to a general increase in demand, the commencement of retail sales of Clipstream™ through our Japanese reseller and a focus on solutions for strong verticals such as market research (http://www.surveyclip.com).
Steve Vestergaard, Destiny CEO explains the strategy going forward. “Our focus this quarter has been on establishing business units that can provide recurring, growing revenue streams.
The MPE based music preview service is generating contracted revenues from three out of the four major labels as the Promo Only MPE system is recognized as the US standard. We expect these numbers to grow significantly as we are able to share some of the savings the labels will achieve as they are able to drop physical distribution completely. We also expect another major MPE based product to launch in the next two weeks.
Demand for Clipstream™ has been very strong as streaming video has gone mainstream. We have been investing heavily in R&D and launched an IPTV product in Q3. We expect to release major upgrades to Clipstream™ audio and video in Q4 that will meet many of our customer requests.
Clipstream™ reaches more users than any other solution at a fraction of the bandwidth cost and its enhanced security allows users to lock their content. Clipstream™ is the only instant play solution that works well for longer clips and it enables users to seek forward to parts of the clip that haven’t even been downloaded yet. The new versions will add the best available quality, making Clipstream™ an extremely compelling solution for content owners.”
About Destiny Media Technologies
Destiny Media Technologies, Inc. (www.dsny.com) (DSNY.OB) is a leader in developing easy-to-use tools for distributing media through the internet. The company's suite of streaming and downloadable products includes: Clipstream ™, Destiny Media Player ™, Radio Destiny ™, and MPE ™. Established in 1991, the company is headquartered in Vancouver, Canada.
For additional information contact:
CEO Destiny Media Technologies, Inc.
P: 604 609 7736 x222
F: 604 609 0611
"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.