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Destiny
Media Technologies, Inc Announces
First Profitable Quarter Since Inception
Quarter over Quarter Revenue Growth for Eight
Consecutive Quarters
Nov.
21, 2002
Destiny
Media Technologies Inc. (OTCBB: DSNY, Berlin: DME; 935 410)
is pleased to announce that it has achieved fourth quarter
net income of $108,846. Sales are 23% higher than the previous
quarter and 182% higher than the same quarter in 2001. Revenue
for the year increased from $345,643 in 2001 to $769,326 in
2002. The loss for the year fell from $1,556,869 (.06 per
share) to $377,688 (.01 per share).
Steve
Vestergaard, company CEO, comments on fiscal 2002, "We
invested in establishing a sales distribution channel of 90
partners in 11 countries. This strategy is paying dividends
as combined sales in Europe and Asia have increased from 9%
of total sales in 2001 to 27% in 2002. As the partners become
familiar with our product, pricing and sales cycle, we expect
this international revenue stream to increase significantly.
We've
grown revenues while reducing expenses 30% from fiscal 2001.
We've focused on selling into the mature market verticals
that are currently generating sales, while better supporting
existing users. Most of our customers are renewing their annual
license agreements, so revenue going forward is becoming much
more predictable.
We've
eliminated our long term debt and are in a strong position
to improve shareholder value in fiscal 2003. During the quarter,
Destiny divested itself of Wonderfall Productions, Inc., a
wholly owned subsidiary, to concentrate on core business competencies.
This transaction reduced the overall corporate long term debt
on the consolidated statements from $185,343 to zero."
Because
Clipstream™ plays almost instantly from within a web
page and because it reaches almost three times the installed
base of the player based solutions, it is well suited to replace
static banner advertisements with the richness of thirty second
television commercials playing from within the page or email.
Many mainstream advertisers have run Clipstream ™ enabled
campaigns. Examples include: Audi, BMW, CART (Championship
Auto Racing Team), Disney, Electronic Arts, HBO, HMV, HSBC,
IBM, ING Group, Land Rover, Mazda, Microsoft, Molsons, MGM,
Sony, Stockhouse, Templeton, Tribute, Volkswagen, Volvo and
Z100 (New York). Revenues are anticipated to increase as these
advertisers move from small prototype test campaigns to large
consumer campaigns.
The newest
opportunities for the company include market research and
distance education. Major online market research companies,
such as Greenfieldonline, Openvenue and Target Rx are using
Clipstream™ for online surveys and testing television
commercials. Destiny has become a member of the elearningbc.com
alliance and is exploring partnerships with a number of possible
partners in the space.
Some
of the new market verticals the company has achieved success
at in the last year include advertising, online market research,
and distance education.
In
July, Destiny was approached to join a technology consortium
led by Royal Roads University to build Clipstream™ authoring
support into the e-learning LOGIC project (Learning Object
Generator in Case Studies). In August the Canadian Federal
Government announced that they would fund half of the $1.4
million initiative as part of Canarie (Canada's advanced Internet
development organization). Other partners in the consortium
include Telus and the Justice Institute of BC. This high profile
initiative will assist Clipstream™ in gaining market
share in the rapidly growing e-learning sector.
Destiny
will be investing in an aggressive European marketing campaign
to support the recently announced Berlin stock exchange listing
in Q1 2003. This new listing combined with the increased distribution
channels will create a higher level of European market awareness.
The company is also launching the recently announced Pirate
Radio retail product (http://www.pirateradio.com) this quarter.
We do not expect to be profitable in Q1 2003 but expect to
return to profitability in Q2.
About
Destiny
Destiny
Media Technologies, Inc. (http://www.dsny.com) is a leader
in developing easy-to-use tools for distributing digital media
through the Internet. The company's suite of streaming and
downloadable products includes: Clipstream™, Destiny
Media Player™, Radio Destiny™, Pirate Radio™
and MPE™. Established in 1991, the operating subsidiary,
Destiny Software Productions, Inc. is headquartered in Vancouver,
Canada.
For more
information contact:
| Destiny
Media Technologies, Inc. |
Steve
Vestergaard
steve@dsny.com
President & CEO
Destiny Media Technologies, Inc.
604-609-7736 ext. 222
|
"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.
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