D-BOX Technologies Inc.

D-BOX Technologies Inc.

August 20, 2008 05:42 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 $1,133,533 for its first
quarter of its 2009 fiscal year which ended June 30, 2008 which compares to
revenues of $802,538 for the first quarter of the 2008 fiscal year or a 41%
increase. The net loss for the quarter amounts to $1,061,822 ($0.0116 per
share) which compares to a net loss of $997,850 ($0.0153 per share) for the
corresponding quarter of the fiscal 2008 year.-------------------------------------------------------------------------
    Financial Highlights

    Selected Financial Information
    For the three month period ended June 30, -------------------------------
    (dollar, except loss per share)                 Q1/2009          Q1/2008
    Revenues                                      1,133,533          802,538
    Net Loss                                     (1,061,822)        (997,850)
    Basic and diluted loss per share               ($0.0116)        ($0.0153)

                                              As of June 30,  As of March 31,
                                                       2008             2008

    Cash and cash equivalents                     5,152,573        4,376,881
    Short-term investments                        4,102,610        4,074,953
    Total short-term liquidities                  9,255,183        8,451,834


    Additional Highlights

    - 41% increase in revenues in comparison to the corresponding quarter of
      last year explained by an increase in sales of D-Box systems for the
      home theatre market.

    - Increase in the number point of sales in regards to specialty retail
      chains offering D-BOX systems. Their number stands at close to thirty
      in North-America on June 30, 2008.

    - Strengthening of the D-BOX balance sheet through a private placement
      realised with an important US institution for a gross amount of
      1,750,000 $. The available liquidities as of June 30, 2008 stand at
      approximately $9.3 million compared to $8.5 million as of March 31,

    -------------------------------------------------------------------------Commenting the quarterly accomplishments, Mr. Claude McMaster, President
and Chief Executive Officer of D-BOX stated: "We are very encouraged by the
progression we realised during the quarter. In addition to increasing our
sales of D-BOX systems, we are also able to expand and improve our sales
network through an interesting breakthrough with speciality chains. By making
our systems available to a growing number of consumers, we continue increasing
the notoriousness and visibility of our technology while setting the ground
for the next steps of our development. To do so, we can count on a solid
balance sheet, which will allow us to grow the Company and accelerate the
development of new market segments."

    Three-month period ending June 30, 2008

    For the quarter ended June 30, 2008, revenues increased 41%, amounting to
$1,133,533 compared to $802,538 for the corresponding quarter of last year.
This increase is explained by higher revenues generated by the sale of home
entertainment systems (D-BOX systems), which saw their sales, increase from
$336,585 to $859,136 or a 156% increase. On the other hand, sales generated by
the commercial entertainment sector (products for commercial arcades) amounted
to $274,397 down from the $466,954 realized in the first quarter of 2008.
    For the quarter ended June 30, 2008, gross profit amounted to $465,585
(41% of revenues) compared to $279,449 (35% of revenues) for the corresponding
quarter last year. This favourable evolution of the gross profit is mostly
explained by the increase in revenues.
    Sales and marketing expenses amounted to $753,853 for the quarter ended
June 30, 2008 compared to $543,883 for the corresponding quarter last year.
The hiring of additional resources and the development of marketing tools to
support the increased sales efforts in regards to home entertainment systems
mostly explains this increase.
    Administration expenses amounted to $522,055 for the quarter ended
June 30, 2008 compared to $462 214 for the corresponding quarter of last year.
The increase in administration expenses is mostly explained by additional
payroll expenses caused by the growing number of new employees as well as by
an increase in overall administration expenses explained by the company's
ongoing expansion.
    For the first quarter ended June 30, 2008, financial expenses net of
foreign exchange gains and losses realized on amounted to $6,201 compared to
net financial expenses of $70,808 for the corresponding quarter of last year.
This variation is mostly explained by investment income realized on funds
received following the issuance of equity during the course of the 2008 fiscal
year and during the course of the first quarter of the current fiscal year.


    Generally speaking, D-BOX will focus in the short and midterm on three
main areas of development; home theatre and video games in the home
entertainment sector and traditional movie theatres in the commercial
entertainment sector. In regards to home entertainment, the Company aims to
expand its sales and marketing network with an accrued emphasis on speciality
chains. At the same time, D-BOX will increase development of the home video
game market by introducing a more accessible gaming chair allowing for an
expansion of its targeted market. D-BOX also aims to sign a first agreement
with a manufacturer of gaming devices as well as a first licensing agreement
with a video game development studio.
    Within the commercial entertainment segment, D-BOX is currently in
discussions with certain theatre owners as well as with a limited number of
movie studios with the idea of presenting a first feature presentation
incorporating audio, video and motion (AVM) in a commercial movie theatre.
Eventual penetration of this new market could prove to be a significant source
of revenue while contributing in increasing the recognition of the technology.

    About D-BOX

    D-BOX Technologies designs and manufactures high-technology motion
systems destined mainly for the entertainment industry. Its unique, patented
technology uses D-BOX Motion Code(TM) specifically programmed for each film,
TV program or video game, resulting in motion that is perfectly synchronised
with on-screen action. By forming strong industry alliances, D-BOX's
award-winning motion technology is creating a global standard in the
entertainment world. For more information, please visit www.d-box.com.
    D-BOX 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.
    %SEDAR: 00012304EF

Contact Information

  • Normand Chartrand, Chief Financial Officer,
    D-Box Technologies Inc., (450) 442-3003, extension: 258, nchartrand@d-box.com;
    Marc Jasmin CMA, President, Jasmin Financial Communications Inc., Investor
    relations, (514) 231-2360, mjasmin@d-box.com