Vancouver, British Columbia--(Newsfile Corp. - October 24, 2019) - Destiny Media Technologies, Inc. (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based solution for promotional music marketing, today provided an update on recent corporate activities.
On October 2, 2019, the Company received a notice letter requesting the nomination of new candidates for election as directors of the Company at the next annual general meeting in February 2020. The letter was received from the Company's former CEO who was dismissed in June 2017 and who has filed a statement of claim against the Company and its directors. The nomination was deficient in numerous substantial aspects and is invalid. As a result, the matter cannot be brought before the meeting. The letter also contained numerous false statements. The Company today provided clarity with respect to some of those statements.
Over the past two years, the Company has focused on improving through:
- Narrowing the Company's focus to its core business, Play MPE®, eliminating investments in unrelated development projects without a defendable business case,
- Significantly improving the team by making a number of personnel adjustments necessary to improve the Company's ability to execute on product, marketing and business development, and
- Increasing the Company's overall investment to grow revenue, market share and addressable markets.
While personnel adjustments were made throughout the two year period, reductions were made initially followed by additions and other key changes which were weighted towards the second half of fiscal 2019. These adjustments include:
- doubling the size of the business development and marketing group,
- upgrading the skill set and completely revamping the product group, and
- increasing the development capacity of the software engineering group through additions and replacements including the Director of Engineering.
These actions were undertaken to solidify an industry leading position within the music industry, provide much needed and long overdue product improvements to facilitate revenue growth. As a result of these efforts the Company has enjoyed early successes including:
- The release of an upgraded, Mac accessible and easier to use distribution platform (Q4-2018),
- Improved foreign exchange adjusted Play MPE® revenue. The Company has moved from net reductions in revenue (observed in Q2 and Q3 2018), to nominal increases in the following two quarters (Q4-2018 and Q1-2019) and then to increases of more than 10% (Q2 and Q3 2019). These improvements are observed through the recovery of previous customers, expanded use with existing customers and the start of use in new market segments including; Major Record Label use in the Baltic countries, and the commencement of use in new genres of music in the USA (Jazz, Pop, Urban etc),
- Commencement of trial use for new customers in South Africa, Canada, and the UK, and
- Improved cash position created through the elimination of unproductive costs prior to investments in new staffing.
Looking forward the Company sees tremendous opportunities initially through growing usage of the Play MPE® platform in new markets. The Company's immediate focus will be to continue to make improvements to the business development processes and improvements to the product that will facilitate both, the success of our business development conversion efforts and expanded use through self-serve customers.
The Company's increased investments towards the end of fiscal 2019 follows growth in revenue and previous cost reductions achieved through staff adjustments and the elimination of unproductive projects and expenditures. The Company expects to fund expanded investments with current revenue and will continue to evaluate additional opportunities as revenue growth permits.
The music industry is undergoing a secular growth stage by adapting to digital consumption. Over the medium term, the Company sees many opportunities to capitalize on changes within the industry and will continue to evaluate additional services to expand addressable markets leveraging customer successes and the industry's leading Play MPE® platform.
For more information on the response to the letter can be found here: Response Letter
About Destiny Media Technologies, Inc.
Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond.
SOURCE Destiny Media Technologies, Inc.
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 for the fiscal year ended August 31, 2018, which is available on www.sedar.com or www.sec.gov.
For further information:
Fred Vandenberg, firstname.lastname@example.org CEO,
Destiny Media Technologies, Inc., 604-609-7736 x236;
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49120