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

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 second quarter of fiscal 2014.


Highlights during and subsequent to the end of the second quarter include :

  • Launched the Clipstream video cloud service for commercial use
  • Became the exclusive supplier of digital distribution services for Sony Music Australia
  • Received approval for our first watermarking technology patent in Europe
  • Signed an agreement with Shazam to license digital fingerprints and metadata to its servers

"This quarter marked a significant milestone for our company with the launch of the Clipstream® video cloud service," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "We believe this product has the capability to disrupt the $5 billion dollar video encoding market. We continue to build our sales and support staff and as the service gains traction, we have the opportunity to rapidly grow our revenues and profitability. We are making our Play MPE service more user friendly with the introduction of applications for multiple devices and pursuing opportunities beyond music delivery."

Second Quarter Results

Service revenue for the second quarter was $810,682, versus $880,322 during the prior year quarter. As previously discussed, the year-over-year decrease in revenue was primarily related to a multi-year renewal of agreements with the Company's largest customer.  While the renewal affected year over year revenue comparisons during the quarter, it is expected to facilitate an increase in usage and global expansion.

Net loss for the second quarter was ($374,833), or ($0.01) per share, versus net income of $13,198, or $0.00 per diluted share, in the prior year quarter. This quarter's results include an expense of $344,352 related to stock based compensation and payouts made for the repurchase of stock options by the Company. Excluding this expense, net loss for the second quarter was ($30,481), or ($0.00) per share, compared to net income of $13,198, or $0.00 per diluted share in the prior year quarter.

Second Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on April 10, 2014, to further discuss its second 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 # 07868883. 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 ( provides a standardized method to securely and cost effectively distribute pre-release music to radio stations and other music industry professionals, before it is ready for sale.  More information can be found at

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. CONDENSED STATEMENT OF OPERATIONS (Expressed in United States dollars) Unaudited

  Three Months Ended February 28, 2014 $ Three Months Ended February 28, 2013 $ Six Months Ended February 28, 2014 $ Six Months Ended February 28, 2013 $
Revenue 810,682 880,322 1,733,223


Operating expenses        
General and administrative 526,166 198,340 769,665 389,597
Sales and marketing 394,750 203,382 726,391 443,600
Research and development 268,362 457,080 532,846 857,432
Amortization 33,061 28,390 64,408 56,046
  1,222,339 887,192 2,093,310 1,746,675
Income (loss) from operations (411,657) (6,870) (360,087) 197,514
Other income        
Interest income 15,824 20,068 32,647 40,734
Income (loss) before income taxes (395,833) 13,198 (327,440) 238,248
Income tax recovery (expense) - deferred 21,000 (3,000) (65,000)
Net Income (loss) (374,833) 13,198 (330,440) 173,248
Other comprehensive income (loss), net of tax        
Foreign currency translation adjustments (140,131) (77,448) (154,681) (82,964)
Total comprehensive income (loss) (514,964) (64,250) (485,121) 90,284
Net income (loss) per common share, basic and diluted (0.01) 0.00 (0.01) 0.00

Destiny Media Technologies, Inc. CONSOLIDATED BALANCE SHEETS (Expressed in United States dollars) Unaudited

  February 28, 2014 $ August 31, 2013 $
  $ $
Cash and cash equivalents 870,939 1,521,552
Accounts receivable, net of allowance for doubtful accounts of $3,143 [August 31, 2013 - $11,392] 616,665 419,697
Other receivables 73,852 16,636
Current portion of long term receivable 105,077 99,649
Prepaid expenses 42,093 29,653
Deposits 22,355 35,611
Deferred tax assets – current portion 130,000 130,000
Total current assets 1,860,981 2,252,798
Long term receivable 387,900 440,889
Property and equipment, net 262,902 234,969
Deferred tax assets – long term portion 726,000 729,000
Total Assets 3,237,783 3,657,656


Accounts payable 159,824 317,625
Accrued liabilities 317,625 221,720
Deferred leasehold inducement - 2,892
Deferred revenue 5,528 70,415
Total liabilities 482,977 374,649
Commitments and contingencies    
Stockholders’ equity    
Common stock, par value $0.001
Authorized: 100,000,000 shares
Issued and outstanding: 52,680,845 shares [August 31, 2013 - issued outstanding 51,981,964 shares]
52,681 51,982
Additional paid-in capital 8,885,605 8,929,384
Accumulated Deficit (6,117,456) (5,787,016)
Accumulated other comprehensive income (loss) (66,024) 88,657
Total stockholders’ equity 2,754,806 3,283,007
Total liabilities and stockholders’ equity 3,237,783 3,657,656

Destiny Media Technologies, Inc. REG G RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA

  Three Months Ended February 28, 2014 $ Three Months Ended February 28, 2013 $
Net income (loss) (374,833) 13,198
(Benefit) provision for income taxes ($21,000) $0
Interest (income) expense ($15,824) ($20,068)
Depreciation and amortization expense $33,061 $28,390
Share-based compensation $344,352  $0
Adjusted EBITDA ($34,244) $21,520

For further information:

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

Investor Relations:
Dave Mossberg
Three Part Advisors

Keith Loh