Fifth Consecutive Year of Revenue Growth; US Deliveries Increase 266%
TORONTO, April 29 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the year and fourth quarter ended December 31, 2007. YANGAROO achieved its fifth consecutive year of revenue growth in 2007, reporting a 22% increase in revenue (which excludes interest income) over fiscal 2006. Cash and cash equivalents were at a record high of $6,497,000 at December 31, 2007, exceeding budgeted targets and considerably greater than in any previous year.
In the U.S. market, the volume of U.S. deliveries made by YANGAROO's Digital Media Distribution System (DMDS) grew by 266% to 1.3 million, marking another historic milestone in the technology's adoption. During the third quarter alone, U.S. deliveries exceeded 300,000, a first for quarterly volumes. In the fourth quarter of 2007, the number of U.S. deliveries made on DMDS doubled over the fourth quarter of 2006 to 437,000. The company is actively working with its US users to monetize these growing volumes.
"Through our continued expansion in Canada, the U.S. and the U.K. markets, we experienced tremendous growth in 2007," said YANGAROO President & CEO John Heaven. "In 2007 we completed the largest financing in the company's history, increased revenues for the fifth year in a row, launched our U.K. based service, expanded our product offerings, re-branded the company, bolstered the management and technology team, moved the company's stock exchange listing up to Tier 1, vigorously prosecuted our patent infringement claim against a competitor, moved to larger premises to accommodate growth, and aggressively pursued our pending US patent application. These developments and others make us confident that we will continue to see our business flourish in 2008."
Planned additions to operating expenses, which were under budget for both the year and the fourth quarter, were the primary reason for the increase in the loss in 2007. The company utilized funds from the financing completed in the first quarter to reinforce areas that were previously under-resourced. The majority of the increase in operating expenses in 2007 stemmed from the planned augmentation of human resources and from continuing to enforce and expand YANGAROO'S intellectual property rights.
Summary of operating results for the years and fourth quarters ended December 31:
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$CDN Year 4th Quarter
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2007 2006 2007 2006
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Revenue 524,956 430,142 137,650 124,441
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Interest income 280,757 13,979 70,348 2,063
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EBITDA (2,573,990) (1,860,211) (803,358) (416,429)
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Net loss for
the period (2,665,159) (2,113,587) (851,610) (489,405)
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Loss per share
(basic & diluted) (0.04) (0.07) (0.01) (0.01)
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The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
In further news, the board of directors has granted 210,000 options with an exercise price of $0.22 and an expiry date of April 18, 2013 to four executives. These options were earned under the management team compensation plan established for 2007 by the independent compensation committee of the board. The board of directors has adopted a policy of setting option exercise prices at the greater of the three month weighted average trading price and the closing price on the day before the grant. The compensation committee has also established a performance compensation plan for the management team for 2008. Under the plan the management team is eligible to earn up to 430,000 options, which the board has granted with an exercise price of $0.22 and expiry date of April 18, 2013. None of these options will be exercisable unless specific performance criteria in the plan are achieved in 2008.
About YANGAROO:
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery of broadcast quality media via the Internet.
YANGAROO's DMDS has made over five million deliveries of over 11,000 songs from more than 500 record labels to destinations which include radio stations representing over 35 US broadcast chains. DMDS is the only system that can digitally deliver music across the U.S., Canada and the UK. YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB:YOOIF. For further information please contact John Heaven, President and CEO at 905-763-3553 or visit www.yangaroo.com.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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