Vancouver’s Destiny Media Technologies announced today that third quarter revenues grew by 42% from the previous quarter and 80% over the third quarter in fiscal 2008 on the strength of better than anticipated revenue for its Play MPE system.
Most importantly, Destiny Media became profitable and realized positive cash flow from operations.
“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”, commented Destiny CFO, Fred Vandenberg.
“We have experienced 17% compounded quarter over quarter revenue growth over the past eleven 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 31, 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.”
Play MPE® may well be on its way to becoming the global standard with over one thousand labels including all the majors having chosen it to send their new music to radio.
Destiny Media’s stock price (OTC BB: DSNY.OB) was up 75% mid-day trading at 35 cents bringing it’s market capitalization to US $18 Million.
In May Toronto’s Yangaroo filed a claim for patent infringement in the US requesting that the court issue an injunction against Destiny Media. Destiny quickly filed a motion to dismiss based on a lack of evidence.
Yangaroo’s stock price (YOO.V) was flat at 10 cents throughout the day and closed with a market cap of $7.5 Million.