Destiny Media Announces Third Quarter Results

    




 VANCOUVER, July 17, 2012 /CNW/ - Destiny Media Technologies   (OTCQX: DSNY) is pleased to announce results for the quarter ending May  31, 2012.  Revenues of $1,022,921 reflect a 14% increase from the prior  quarter, but a 13% decline from the prior year.  The decline  as  compared to the prior year quarter is attributable to the recognition  of a single revenue item included in a multi-year agreement that was  recognized in Q3-2011.  European revenues increased 11% over the prior  year and currently represent 44% of our music distribution revenue.   Nine month revenue was approximately the same as in prior year. 

 Operating expenses for the quarter declined from $853,098 in the prior  year to $208,827.  The decline is attributable to a gain on  the  settlement of litigation in Australia.  The company agreed to accept a  settlement with a value of approximately $859,000. The company will  receive the payment, which is secured by real estate and a general  security agreement, over six years.  The outstanding balance attracts  10.25% interest and is recorded as a long term receivable.  Litigation  costs during the period were significant.  Over nine months, the  company spent approximately $607,000 on legal fees.  This expense will  decline significantly in future quarters.  R&D expenses increased 25%  over the prior year, reflecting increased investments in IP,  infrastructure and staffing to support the launch of our new  Clipstream® and Play MPE® products. 

 Net income increased 182% over the prior year to $651,138 ($.01 per  share). 

  





                       Three Months  Three Months  Nine Months  Nine Months

                            Ended         Ended        Ended        Ended

                          May 31,       May 31,       May 31,      May 31,

                             2012          2011         2012         2011

                              $              $            $            $

                                                                 

    Revenue               1,022,921      1,176,473    3,042,363   3,074,183

                                                                           

    Operating expenses                                                     

    General and           (469,548)        262,467      439,574     922,012
    administrative

    Sales and               162,146        184,280      554,816     598,811
    marketing

    Research and            492,041        392,818    1,456,435   1,151,463
    development

    Amortization             24,248         13,533       54,987      44,313

                            208,887        853,098    2,505,812   2,716,599

    Income from             814,034        323,375      536,551     357,584
    operations

    Other income                                                           
    (expenses)

    Other income              4,462             43        4,462       3,073

    Interest income          22,648          1,445       27,619       6,527

    Interest and other          (6)          (143)      (1,186)       (628)
    expense

    Income before           841,138        324,720      567,446     366,556
    income taxes

    Income tax
    recovery (expense)    (190,000)       (94,000)    (190,000)   (106,000)
    - deferred

    Net income (loss)       651,138        230,720      377,446     260,556

    Net income (loss)
    per common
    share,basic and
    diluted                    0.01           0.01         0.01        0.01






  

  

 About Destiny Media Technologies, Inc. Universal, EMI, Warner, Sony and one thousand other labels use Destiny's  secure distribution service to deliver their pre-release music to radio  and other trusted recipients. The company is launching a new cross  platform playerless streaming format that doesn't require streaming  servers and which reaches ten times as many viewers as other solutions  with the same bandwidth and infrastructure by reusing streams.   Publishers can reach smart phones, tablets, e-book readers and  computers from a standard web server without the cost of transcoding. 

Destiny Media Technologies, Inc.


CONTACT:  Media Contact:Fred VandenbergCFO Destiny Media Technologies, Inc.604 609 7736 [e-mail] 


    

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