D-BOX Technologies Inc.

D-BOX Technologies Inc.

August 20, 2009 05:09 ET

D-BOX announces its first quarter results

    LONGUEUIL, QC, Aug. 20  - D-Box Technologies Inc. (DBO.A on
the TSX venture exchange) announces revenues of $1,188,779 for the first
quarter of its 2010 fiscal year which ended June 30, 2009 which compares to
revenues of $1,133,533 for the first quarter of the 2009 fiscal year or a 4.9%
increase. The net loss for the quarter amounts to $1,414,501 ($0.0151 per
share) which compares to a net loss of $1,061,822 ($0.0116 per share) for the
corresponding quarter of the fiscal 2009 year.-------------------------------------------------------------------------

    Selected Financial Highlights

    For the three-month period
     ended June, 30,
     (in dollars, except
     loss per share)                       ----------------------------------
                                                   Q1/2010           Q1/2009
                                             June 30, 2009     June 30, 2008
    Revenues                                     1,188,779         1,133,533
    Net loss and comprehensive loss             (1,414,501)       (1,061,822)
    Basic and diluted loss per share              ($0.0151)         ($0.0116)

    Balance sheet data                                As at            As at
                                            June 30, 2009(*)  March 31, 2009

    Cash and cash equivalents                     1,417,113        2,982,806
    Short-term investments                        1,615,772        1,614,677
    Total short-term liquidities(*)               3,032,885        4,597,483
    (*) A financing for an additional gross amount of $3.5 million was
        completed on July 23, 2009.


    Additional Highlights

    - D-BOX enters the commercial theatre market with 166 systems installed
      in seven North-American cities as at August 19, 2009, the presentation
      of three feature presentations incorporating its motion technology and
      two additional titles announced for the following weeks, including a
      first 3-D feature presentation.

      D-BOX continues to actively develop this new market, targeting a
      commercial model based for the most part on a royalty on each ticket

    - The Corporation completes after the end of the first quarter a
      financing for a gross amount of $3,500,000 consisting of the issuance
      of 8,750,000 common shares and 4,375,000 purchase warrants. Each
      purchase warrant entitles the holder to purchase one additional common
      share of D-BOX at a price of $0.65 for an eighteen month period ending
      January 23, 2011.

    -------------------------------------------------------------------------Commenting the quarterly accomplishments, Mr. Claude Mc Master, President
and Chief Executive Officer of D-BOX stated: "We are very enthusiastic about
the significant progress we achieved in the last few months. More precisely,
the receptivity towards our commercial theatre systems was excellent,
suggesting a quite promising future for D-BOX. We intend over the next few
quarters to wisely deploy our capital, accelerating the development of this
new market while launching new and more affordable systems in the video gaming
and home theatre markets."

    Three-month period ending June 30, 2009

    For the first quarter of the 2010 fiscal year ended June 30, 2009,
revenues increased 4.9%, amounting to $1,188,779 compared to $1,133,533 for
the corresponding quarter of last year. The increase in sales generated from
the commercial entertainment sector more than compensated for the decrease in
sales of home entertainment systems. For the quarter ended June 30, 2009,
gross profit amounted to $546,410 (46% of revenues) compared to $465,585 (41%
of revenues) for the corresponding quarter of the 2009 fiscal year. This
favourable evolution of the gross profit is explained by the increase in
revenues, a more favourable mix of products sold and by the positive impact of
the variation of the CAN $ in comparison to the US $.
    For the period, sales and marketing expenses amounted to $989,795
compared to $753,853 for the corresponding quarter last year. This increase is
mostly explained by additional expenses incurred in regards to the deployment
of the D-BOX technology in the commercial theatre market.
    Research and development expenses reached $308,200 for the first quarter
of the current fiscal year which compares to $245,298 for the corresponding
period last year reflecting expenses in regards to the development of new and
more affordable products.
    Administration expenses amounted to $520,143 for the quarter ended June
30, 2009 compared to $522,055 for the corresponding quarter of last year.
    Financial expenses net of investment income and foreign exchange gains
and losses amounted to $142,773 compared to $6,201 for the corresponding
quarter of last year. This variation is mostly explained by the fluctuation of
the exchange rate between the CAN $ and US $ and by lower interest income on
investments.Additional information in regards to the three-month period ending
    June 30, 2009The financial information in regards to the three-month period ended June
30, 2009 should be read in conjunction with the Corporation's financial
statements and interim management and discussion analysis dated August 19,
2009. These documents are available at www.sedar.com


    Generally speaking, 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 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 mostly aims at expanding its sales and marketing
network coinciding with the launch of the new hybrid GPH-120 system scheduled
to be available shortly. D-BOX believes that further tapping into these
markets could drive significant revenues while boosting recognition of its

    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 850 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: 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., (514)
    231-2360, marc@comjamais.com