D-BOX Technologies Inc.

D-BOX Technologies Inc.

February 23, 2009 02:00 ET

D-Box announces its best ever quarterly sales

    LONGUEUIL, QC, Feb. 23  - D-Box Technologies Inc. "D-BOX"
(DBO.A on the TSX venture exchange) announces revenues of $1,227,340 for the
third quarter of its 2009 fiscal year, ended December 31, 2008 which compares
to revenues of $949,117 for the third quarter of the 2008 fiscal year, ended
December 31, 2007. The net loss for the quarter amounts to $1,259,202 ($0.0134
per share) which compares to a net loss of $1,251,133 ($0.0145 per share) for
the corresponding quarter of the fiscal 2008 year.Selected Financial Information

    For the three month period
     ended December 31
    (in dollars, except loss per share)
                                                  Q3/2009            Q3/2008
                                        December 31, 2008  December 31, 2007
    Revenues                                    1,227,340            949,117
    Net Loss and comprehensive loss            (1,259,202)        (1,251,133)
    Basic and diluted loss per share             ($0.0134)          ($0.0145)
                                                    As at              As of
                                        December 31, 2008     March 31, 2008

    Cash and cash equivalents                   1,836,169          4,376,881
    Short-term investments                      4,145,464          4,074,953
    Total short-term liquidities                5,981,633          8,451,834


    Additional Highlights

       - Sales increased 29% to reach a quarterly record of $1,227,340 which
         compares to $949,117 $ achieved last year. ;

       - D-BOX introduces at the Consumer Electronic Show (CES) held in Las
         Vegas its new hybrid GPH-120 system (Video games and Home Theatre)
         which will carry a suggested retail price of $US 2,999 allowing to
         target a new category of consumers. This system is scheduled to be
         commercially available early in the summer of 2009 coinciding with
         an expansion of the distribution network. ;

       - The acceptance of D-BOX's technology continues to progress as
         witnessed by the total number of Blu-Ray (TM) embedded movies by
         D-BOX's supporting studios. Their cumulative number increased to
         36 titles as at December 31, 2008 compared to 7 titles as at
         December 31, 2007. Considering the titles in Blu-Ray (TM) format and
         those in DVD format, D-BOX's library now counts more than 850
         titles. ; and

       - D-BOX announces that the Mann Chinese 6 Theatre of Los Angeles has
         accepted to present the first feature presentation incorporating its
         motion technology. The first commercial presentation of a motion
         picture incorporating audio, video and motion (AVM) would be a
         worldwide premiere.

    -------------------------------------------------------------------------Commenting on the quarterly accomplishments, Mr. Claude Mc Master,
President and Chief Executive Officer of D-BOX stated: "We continue to advance
in the right direction as witnessed by the increase in quarterly sales and the
signing of new business agreements. Furthermore, we believe we've recently
taken the proper steps to support this trend by announcing the near-term
commercial launch of our more affordable hybrid system, the GPH-120, mainly
targeting the video game market, one of the most promising for D-BOX."
    According to our plan, the commercial launch of this system which will
carry a suggested retail price of $US 2,999 should coincide with the addition
of new distributors as well as with the introduction of a direct Web based
sales model for the video gaming sector. At the same time, we anticipate
presenting a first motion picture incorporating audio, video and motion (AVM),
a worldwide premiere, at Los Angeles' Mann Chinese 6 Theatre. Despite
targeting a separate market, this excellent showcase should significantly
enhance our visibility and stimulate interest for home theatre and video
gaming systems."

    Three-month period ending December 31, 2008

    For the third quarter of fiscal 2009 ended December 31, 2008, revenues
totalled $1,227,340 compared with $949,117 for the corresponding period last
year or a 29% increase. This increase is explained by sales of home
entertainment products which increased from $511,108 to $874,033 or 71%. This
increase stands at 39% when we exclude this quarter's favourable impact of the
$US exchange rate fluctuation compared to the same quarter last year. Sales to
manufacturing clients in the commercial entertainment segment decreased 19% to
$353,306 which compares to $438,009 last year. Our main commercial customer
within the arcades' sector felt the slowdown associated with the current
global economic context.
    For the third quarter, gross profit amounted to $551,046 (45% of sales)
compared with $302,318 (32% of sales) for the prior year corresponding period.
This gross profit variation is mainly explained by the higher sales volume and
the favourable impact of the evolution of the exchange rate.
    For the third quarter of fiscal 2009, net loss and comprehensive loss
amounted to $1,259,202 ($0.0134 per share) compared with a net loss of
$1,251,133 ($0.0145 per share) for the corresponding period last year. The
increase in gross margin compensated for higher sales and marketing,
administrative and research and development expenses.
    The financial information in regards to the three-month period ended
December 31, 2008 which is described above as well as the information in
regards to the nine-month period ended December 31, 2008 described hereafter
should be read in conjunction with the financial statements and the interim
management and discussion analysis dated December 31, 2008. These documents
are available at www.sedar.com

    Nine-month period ended December 31, 2008

    For the nine-month period ended December 31, 2008, revenues amounted to
$3,365,783, up 16% from $2,900,388 for the corresponding period last year.
This revenue growth was driven by a 44% increase in sales of home
entertainment products to $2,448,733 from $1,703,288 a year ago. This increase
stands at 35% when we exclude the favourable evolution of the exchange rate
between both periods and is explained by the addition of new points of sale,
including the expansion of the Corporation's network of specialty stores, the
positioning of resources and sales and marketing initiatives, as well as
increased market share prompted by new product launches over the past year.
Furthermore, sales to manufacturers in the commercial entertainment segment
fell 23%, totalling $917,050 in the first nine months of fiscal 2009 compared
with $1,197,100 for the corresponding period of 2008. While, they remained
significant, the weighting in terms of total revenues of sales generated from
the arcades market fell from 41% of total revenues last year to 27% of total
revenues for the current fiscal year.
    For the nine-month period, net loss and comprehensive loss amounted to
$3,805,627 ($0.0410 per share) compared with $3,033,892 ($0.0383 per share)
for the corresponding period last year. The increase in net loss and
comprehensive loss for the nine-month period is mainly attributable to higher
costs related to the payroll expansion in sales and marketing aimed at growing
the Corporation's business and developing new opportunities.


    Generally speaking, D-Box will focus development initiatives on three
major areas: video games, movie theatres and home theatre.
    In the home entertainment segment, the Corporation intends to expand its
sales and distribution network for its motion systems. More specifically, the
Corporation expects to interest new distributors to its hybrid GPH-120 system
which is scheduled to be available within a few months with a suggested retail
price of $US 2 999. At the same time, D-BOX will accelerate the development of
its direct sales structure (Internet) in order to support the expansion of its
product line.
    As previously indicated, in regards to the commercial entertainment
market, D-BOX will concentrate its efforts to ensure a successful launch at
the Mann Chinese 6 theatre in Los Angeles of a world premiere, the first
commercial version of a feature presentation incorporating audio, video and
motion (AVM). At the same time, the Corporation will continue its negotiations
with other exhibitors as well as with movie studios to obtain new titles.
Tapping into this potential new market could drive significant revenues in the
medium term while boosting recognition of D-BOX technology which in turn could
stimulate the sales of home entertainment systems.
    Current economic conditions may create challenging markets for the sale
of D-BOX products and have an impact on the Company's future profitability.

    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)" 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 more than 850 titles. Accordingly, many prominent
Hollywood studios have started embedding D-BOX MOTION CODE (TM) on many  
Blu-ray (TM) format 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: 00012304EF

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., Investor
    Relations, (514) 231-2360, marc@comjamais.com