U.S. Deliveries Rise 62%; Revenues Up; New Partnerships, Product Spur
DMDS Adoption
TORONTO, May 30 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced results for the first quarter ended March 31, 2008. Revenues were 3% higher than revenues for the same period in 2007 due to the increased use of YANGAROO's Digital Media Distribution System (DMDS). Cash and cash equivalents were $5,738,000 at March 31, 2008, which, based upon the change in cash in the quarter of $759,000, represents approximately two years of funding. In the United States market, the volume of deliveries made by YANGAROO's DMDS reached 438,000, a 62% increase over last year's first quarter, and a continuation of the trend noted in the fourth quarter of 2007.
YANGAROO has continued to enter into new partnerships, increasing DMDS' brand recognition. The company entered into an agreement with Radio & Records (R&R), the leading radio and record industry publication in the U.S., to market and promote DMDS to the U.S. radio and recording industries. It also signed an agreement with Intermedia Regional Promotions in the UK for the use of DMDS to deliver new releases to radio across the UK through Adstream, Ltd., YANGAROO's UK-based partner.
The company also launched DMDSDirect, a new e-commerce service that allows the independent North American music community greater access to digital delivery of music. DMDSDirect allows users to choose a package of key stations in a given radio format or genre, pay by credit card, and have their music distributed both quickly and digitally to radio stations throughout the U.S. and Canada.
"Our partnerships and new products are continuing to fuel DMDS' adoption and are expected to accelerate revenue growth," said YANGAROO President & CEO John Heaven. "The growth in U.S. deliveries, the revenue increase and UK market progress that occurred during the traditionally slow first quarter is a sign of the increased acceptance of our technology by the global music industry. As we announced yesterday, we have made significant progress with our pending US patent application No.10/431,854 where the Examiner has agreed that the recent office action will be withdrawn and the application submitted for allowance."
The loss for the first quarter of 2008, which increased 53% from the first quarter of 2007, was mainly a result of higher total expenses. The majority of the increase in operating expenses in the first quarter of 2008 stemmed from the company's planned augmentation of its human resources during 2007 and from continuing to enforce and expand its intellectual property rights. Operating expenses in the first quarter of 2008 were below the budgeted target.
Summary of operating results for the first quarter ended March 31, 2008:
First Quarter ($Cdn)
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2008 2007
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Revenue 127,077 122,808
Interest income 55,388 60,483
EBITDA (731,762) (511,717)
Net loss for the period (807,192) (528,693)
Loss per share (basic & diluted) (0.01) (0.01)
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
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 U.S. broadcast chains. U.S. record labels delivered 1.3 million songs via YANGAROO's Digital Media Distribution System (DMDS) in the U.S. in 2007.
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, UK. 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 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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