Destiny Media TechnologiesAnnounces Second Quarter Results
Vancouver, BC – April 13, 2007 – Destiny Media Technologies (DSNY: OTCBB) today announced financial results for the second quarter and first half of fiscal 2007, highlighted by sharply higher system access fees for its proprietary Play MPE™ secure digital media distribution system and the launch on February 22, 2007 of Clipstream 3, the company's newest-generation solution for playing user-generated audio and video over the Internet.
"Access fees from our proprietary Play MPE™ secure digital media distribution system surged 76% for the first half versus prior year, reflecting continued rapid growth in system usage with the signing of exclusive agreements with Christian and country-oriented labels. In the second quarter alone, the total number of Play MPE transactions, including individual songs and albums distributed over our system, increased 107% to 5,759,058 compared to 2,784,793 for the second quarter of fiscal 2006.
"We expect this revenue growth to accelerate. In March, subsequent to quarter end, we announced an expanded price-per-delivery agreement with Universal Music Group (UMG), under which Play MPE will be UMG's primary method for online distribution of promotional music, video and other content. We are pursuing similar agreements with other major labels and are building a credit card-based upload system to accommodate the promotional media distribution requirements of smaller labels," said Steve Vestergaard, CEO of Destiny Media Technologies.
"As we expected, Clipstream revenue declined for the second quarter versus prior year in anticipation by our customers of the release of Clipstream 3 late in the period. We believe Clipstream 3 is the best software solution for embedding streaming audio and video into web pages. Among its many unique features, our system provides instant video and sound on virtually any internet browser and does not requiring users to install software or open their computers to potential security threats. We are supporting the launch with an aggressive advertising and marketing campaign that we expect will support renewed growth in this business beginning in the current quarter. We have increased staff by 64% in the last month to properly manage the growth we expect going forward. We have full time staff in BC, Alberta, Ontario, Florida, California and Massachusetts, so we can locally support our marketing initiatives."
Vestergaard noted that the company announced an oversubscribed private sale of its common stock on February 26th, for proceeds of $2,160,000. At February 28, 2007, the company reported positive net working capital of $1,733,306 compared to <$59,429> at August 31, 2006.
Play MPE Transaction Results
687 singles totaling 844,396 transactions
360 bundles representing 1,294 songs totaling 1,629,533 transactions
144 albums representing 1,918 songs totaling 2,989,994 transactions
11 box sets representing 297 songs totaling 295,135 transactions
571 singles totaling 776,383 transactions
200 bundles representing 735 songs totaling 891,292 transactions
65 albums representing 890 songs totaling 940,723 transactions
13 box sets representing 335 songs totaling 176,395 transactions
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.