TORONTO – Despite setting a company record with revenues 43% higher this quarter than those for the same period in 2008, Yangaroo still posted a net loss for its first quarter of 2009.
The digital media distribution company’s net loss for the quarter ended March 31, 2009 was $610,021, reduced by 24% compared to the first quarter of 2008, which it said was primarily due to the higher revenues combined with lower salaries and consulting, plus general, administrative, marketing and promotion expenses.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter improved 33% over the same period in 2008, and cash and equivalents at quarter end were $2.25 million.
"The growth in revenue shows that DMDS’ adoption across North America continues to accelerate," said president and CEO John Heaven, in the press release. "Not only are existing partners increasingly relying on it, but DMDS 5.0 has been embraced by the Canadian Academy of Recording Arts and Sciences and demonstrated how cost-effective, environmentally friendly and less labour-intensive it is.”
Yangaroo’s digital media distribution system (DMDS) 5.0 was used earlier this year by the awards jury and the Canadian Academy of Recording Arts and Sciences at the 2009 Juno Awards.
In other company news, Yangaroo was granted a U.S. patent for its ‘Content Distribution System and Method’ through 2026. Its DMDS, a secure B2B digital delivery solution geared to the music and advertising industries, is the only such system in North American that has U.S. and Canadian patent protection for “all of its essential features”, the release said.
The company promptly filed a claim for patent infringement earlier this month against Destiny Media Technologies, Destiny Software Productions, and MPE Distribution to cease the use of their system in the United States.
In addition, Yangaroo announced that it has hired former Destiny Media executive and co-founder Dean Ernst as a consultant to help market the its digital delivery system.
The DMDS is a web-based delivery system that uses secure digital file distribution through biometrics, high-value encryption and watermarking. It replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable and cheaper digital delivery of broadcast quality media via the Internet.
