Destiny Announce Record Q3 Revenues Up 40% from Q2

Sequential Revenue Growth in 15 of the Last 19 Quarters Averaged 20%

Vancouver, BC – July 14th, 2011 – Destiny Media Technologies (TSXV: DSY) (OTCBB: DSNY) is pleased to announce results for the quarter and period ending May 31, 2011. Revenues of $1,176,473 are the highest in the company's history and reflect an increase of 40% over the previous quarter and 24% over the same quarter in the prior year. Income before income taxes of $324,720 is 33% higher than Q3 2010.

Company CFO, Fred Vandenberg comments “While we are pleased with our growing profit, we are continuing to build the foundations for future revenue increases with a current focus on creating local support and addressing area requirements for other international markets including France, Germany and Japan and increasing usage where penetration is strong. We expect new expenditures from expanded development, support, sales and marketing staff to result in positive impacts to both revenue and net income. After the quarter, we settled three long running legal disputes where we received intellectual property rights and a lump sum settlement amount of $600,000 which is not yet reflected in the financial results. We expect a significant reduction in legal costs associated with this dispute.

According to company CEO, Steve Vestergaard, the period was one of great progress for the company. “We received what we consider to be an extremely valuable patent for watermarking. This proprietary technology is a solution for owners of both video and audio content who wish to protect their content from piracy.

We signed a number of new and renewal agreements for our Play MPE® service, including a renewal of our global agreement with Universal Music and a number of independent and international regional major agreements. The partnership we announced in May with a subsidiary of Dentsu for Asian distribution is expected to impact Q1 2012.

We've been investing aggressively in infrastructure and engineering, with three Clipstream® projects, a complete rewrite of the Play MPE® system and a major integration with a third party scheduling and reporting system with the various initiatives under development for up to three years. We expect these projects to start launching this quarter and next. We were pleased to be recognized by Profit Magazine as one of Canada's fastest growing companies and see great opportunity ahead.”

  Three Months

Ended

May 31, 2011

$

Three Months

Ended

May 31, 2010

$

Nine Months

Ended

May 31, 2011

$

Nine Months Ended

May 31, 2010

$

Revenue 1,176,473 952,383 3074,183 2,869,775
Operating expenses        
General and administrative

262,467

255,487 922,012 768,013
Sales and marketing 184,280 184,801 598,811 578,289
Research and development 392,818 283,757 1,151,463 879,668

Amortization

13,533 14,669 44,313 38,789
  853,098 738,714 2,716,599 2,264,759
Income from operations 323,375 213,669 357,584 605,016
Other income (expenses)        
Other income 43 30,156 3,073 88,466
Interest income 1,445 641 6,527 2,706
Interest and other expense (143) (537) (628) (2,410)
Income before income taxes 324,720 243,929 366,556 693,778
Income tax expense - deferred (94,000) (106,000)
Net Income 230,720 243,929 260,556 693,778
Net income per common share, basic and diluted 0.01 0.00 0.01 0.01

 

About Destiny Media Technologies

Destiny Media (http://www.dsny.com) is the developer of the Play MPE® system (http://www.plaympe.com) which the recording industry uses to securely distribute new pre-release music through the internet to trusted recipients such as radio, media and VIP's. Real time usage statistics are available at http://www.plaympe.com/v4/company/plaympestats.php and a product overview is available at http://dsny.com/pres/index.htm

Company Contact:

Steve Vestergaard

CEO Destiny Media Technologies, Inc.

604 609 7736 x222

steve@dsny.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.

 

Keith Loh