YANGAROO REPORTS THIRD QUARTER RESULTS
Nov. 29, 2010 (Canada NewsWire Group) --
TORONTO, Nov. 29 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the nine months and third quarter ended September 30, 2010. Revenues for the nine month period decreased 8% over revenues for the nine month period of 2009. This change is primarily a result of $81,000 of timing differences in recurring award show revenues that were recognized in the first nine months of 2009, but are to be recognized later in 2010 and in early 2011. The loss for nine months ended September 30, 2010 was 30% ($564,000) higher compared to the same period in 2009, primarily due to bolstering the management team and debenture interest. Increases in recruiting expense of $236,000, interest expense of $100,000, amortization of intangible assets of $60,000 and stock option expense of $38,000 contributed to the increased loss.
Recent period highlights include a multi-year agreement with Viacom's BET Networks to use YANGAROO's Digital Media Distribution System (DMDS) technology for delivery of all artist and music-related audiovisual content to BET properties, an agreement with the Academy of Country Music to power online review and professional member voting for the forthcoming 46th Annual Academy of Country Music Awards and receiving the grant of Canada patent number 2,349,797 titled "Biometric Rights Management System". During the third quarter, YANGAROO named advertising industry veteran Anthony G. Miller to the board of directors and appointed former DG FastChannel Inc. executive Karen Dealy to President of U.S. Advertising Operations. Dealy is working closely with the YANGAROO team on launching the new advertising delivery division, which will offer the advertising community a fast, secure and cost-effective way to deliver HD and SD video as well as audio advertisements to broadcasters.
"This past quarter we made great strides in expanding our reach beyond the music industry to the advertising industry. With the hire of Karen Dealy and naming Anthony Miller to our board, we're forging a winning strategy in this key market. As we meet with key partners, we are seeing that our solution resonates with both agencies and broadcasters," said YANGAROO CEO Scott Wambolt. "With regards to the music industry, we're continuing with our strategy of structuring smart deals with top broadcasters like MTV and BET Networks to accept music video content via DMDS."
Summary of operating results for the periods ended September 30th:
$CDN Nine Months Third Quarter
2010 2009 2010 2009
Revenue 553,553 604,439 171,729 218,211
Interest income 2,854 10,044 2,071 945
EBITDA (1,850,450) (1,452,515) (785,862) (365,996)
Net loss for the period (2,444,938) (1,881,298) (981,287) (545,626)
Loss per share (basic & diluted) (0.03) (0.02) (0.01) (0.01)
The loss for the third quarter of 2010 increased 80% ($436,000) compared to the third quarter of 2009. This increase was primarily due to increases in the general and administrative expense of $233,000 (174%), which includes the higher recruiting expense, and in salaries and consulting expense of $136,000 (36%), plus interest expense of $48,000 on convertible debentures that were issued in the first half of 2010. Timing differences of $47,000 in recurring award show revenues that were recognized in the third quarter of 2009, but are to be recognized later in 2010 and in early 2011 also contributed to the higher loss.
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 audio and video content for music, music videos, and advertising to television, radio, media, retailers, award shows and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.
Named one of Canada's Top 100 Tech Companies for 2009 by Canadian Business, 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 Scott Wambolt at 416-534-0607 ext 111 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.
%SEDAR: 00018809E
Contact:
Gina Preoteasa
Trylon SMR
212/905-6060
gina@trylonsmr.com
Source: Canada Newswire (November 29, 2010 - 9:00 AM EST)
News by QuoteMedia
www.quotemedia.com
AI
