Destiny Media Turns A Profit
July 14, 2009 at 5:30 AM (PT)
DESTINY MEDIA TECHNOLOGIES has released Q3 financials showing revenues grew by 42% from the previous quarter (80% over the third quarter in fiscal 2008) on the strength of better than anticipated revenue for its PLAY MPE system. During the quarter the Company became profitable and realized positive cash flow from operations. PLAY MPE revenue grew by 114% from the same quarter in the prior year.
"The Company has 'crossed the chasm' into profitability and we expect revenues, income and positive cash flow to continue to grow into the foreseeable future", DESTINY CFO FRED VANDENBERG said. "We have experienced 17% compounded quarter-over-quarter revenue growth over the past 11 quarters, which has resulted in income from operations. We project revenue to continue to rise in our fourth quarter leading to a conservatively estimated 30% increase in net income and to realize a profit for the year ended AUGUST 31st, 2009."
According to DESTINY CEO, STEVE VESTERGAARD, "We have worked closely with the record labels to build a system that works well with their internal business processes and they are comfortable relying on our system as they phase out physical CD's completely. We expect our profits from PLAY MPE business to grow into the foreseeable future as the labels expand usage internally and we expand internationally. In addition, we expect to layer in new revenue streams for Clipstream products that will begin rolling out in Q1 of next year."