D-BOX Technologies Inc.

D-BOX Technologies Inc.

February 23, 2010 11:15 ET

D-BOX announces increased revenues for its third quarter

LONGUEUIL, QC, Feb. 23 - D-BOX Technologies Inc. (DBO.A on the TSX venture exchange) announces revenues of $1,314,968 for the third quarter of its 2010 fiscal year which ended December 31, 2009 which compares to revenues of $1,227,340 for the third quarter of the 2009 fiscal year. The net loss for the quarter amounts to $1,440,576 ($0.0139 per share) which compares to a net loss of $1,259,202 ($0.0134 per share) for the corresponding quarter of the 2009 fiscal year. For the nine-month period ended December 31, 2009, D-BOX announces revenues of $3,412,542 which compares to revenues of $3,365,783 for the first nine months of the previous fiscal year. The net loss for the first nine-months of the 2010 fiscal year amounts to $4,408,480 ($0.044 per share) which compares to a net loss of $3,805,627 ($0.041 per share) for the corresponding period of last year.

Recent highlights

- The Corporation completes on February 17, 2010 a financing for a gross
      amount of $7,242,510 consisting of the issuance of 20,692,886 common
      shares and 10,346,443 share purchase warrants. Each share purchase
      warrant allows its holder to purchase one additional common share of
      D-BOX at a price of $0.55 for a twelve month period ending February
      17,2011. This amount will add up to existing liquidities and will
      mostly be used to accelerate the deployment in commercial theatres.

    - The Corporation posts, for the quarter ended December 31, 2009, the
      highest revenues of its history, $1,314,968

    - D-BOX continues its breakthrough in the commercial theatre market;

        - Presentation of three new feature presentations during the quarter
          and two more in the months of January and February for a total of
          eleven since the month of April 2009.

        - Installation of 152 new motion units in six theatres during the
          quarter bringing the total number of motion systems deployed to 318
          across thirteen theatres, reflecting a growth rate of 92% during
          the quarter.

    - As at December 31, 2009, more than 50,000 tickets had been sold for a
      feature presentation of a film embedded with D-BOX technology.


    Selected Financial Highlights (unaudited)
    For the three-month period ended December 31
    (in dollars, except loss per share)          ----------------------------
                                                     Q3/2010       Q3/2009
                                                 December 31,  December 31,
                                                        2009          2008

    Revenues                                       1,314,968     1,227,340

    Net loss and comprehensive loss               (1,440,576)   (1,259,202)

    Basic and diluted loss per share                 (0.0139 $)    (0.0134 $)

                                                       As at         As at
                                                 December 31,     March 31,
    Balance sheet data                                  2009          2009

    Cash and cash equivalents                      2,362,136     2,982,806

    Short-term investments                                 -     1,614,677
    Total short-term liquidities                   2,362,136     4,597,483


Commenting the quarterly accomplishments, Mr. Claude Mc Master, President and Chief Executive Officer of D-BOX stated: "We are very encouraged by the progression of our revenues and by the observed deployment in regards to the commercial theatre segment. We intend over the course of the next few months to multiply our efforts towards this new market while obtaining the best possible content from supporting studios."

Additional information in regards to the three and nine-month periods ending December 31, 2009

The financial information in regards to the three and nine-month periods ended December 31, 2009 should be read in conjunction with the Corporation's financial statements and interim management and discussion analysis dated February 22, 2010. These documents are available at www.sedar.com

Commercial Strategy

In general, D-BOX will focus its development initiatives on three major areas: movie theatres, video games, and home theatre.

ln the commercial theatre market, the Corporation intends to continue signing agreements with new exhibitors, to increase the number of motion units (MFX seats) installed at existing ones and to obtain additional content from movie studios. ln regards to the home entertainment segment which includes the video gaming and home theatre markets, the Corporation aims to expand its distribution network mostly thru new OEM (Original Equipment Manufacturers) agreements aimed to complement direct sales efforts (Video Games). D-BOX believes that further tapping into these markets could drive significant revenues while boosting recognition of its technology.

About D-BOX

D-BOX Technologies designs and manufactures leading edge high-technology motion systems mainly suited to the needs of the entertainment industry. With its unique patented technology, D-BOX Motion Code(TM), it uses motion codes specifically programmed for each film, TV program or video game, which are sent to a motion generating system integrated within either a platform or a seat. The resulting motion is perfectly synchronised with all onscreen action, creating an unmatched realistic, immersive experience. To date, D-BOX Motion Code(TM) is available on over 900 titles. Accordingly, many prominent Hollywood studios have started embedding D-BOX Motion Code(TM) on selected high definition Blu-ray(TM) releases. By reaching agreements with the leaders of both the motion picture and gaming industries, D-BOX's award-winning motion technology is gradually proving itself as a new global standard in the entertainment world.

D-BOX is a publicly traded company listed on the TSX Venture exchange under the symbol DBO.A. For further information please see www.d-box.com.

D-BOX(R) is a registered trademark and D-BOX Motion Code is a trademark of D-BOX Technologies Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

Disclaimer in regards to Forward-Looking Statements

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. We disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

%SEDAR: 00012304E

Contact Information

  • Mr. Luc Audet, Chief Financial Officer, D-BOX Technologies Inc., (450) 442-3003, extension: 296, laudet@d-box.com; Mr. Marc Jasmin, CMA, Partner, Jasmin-Dumais Financial Communications Inc., (514) 231-2360, marc@comjamais.com