D-BOX Technologies Inc.

D-BOX Technologies Inc.

November 15, 2010 03:00 ET

D-BOX announces its highest ever quarterly revenues

LONGUEUIL, QC, Nov. 15 - D-BOX Technologies Inc. (DBO.A on the TSX Venture Exchange) announces revenues of $1,800,369 for the second quarter of its 2011 fiscal year ended September 30, 2010 in comparison to revenues of $908,795 for the second quarter of the 2010 fiscal year. The net loss for the quarter amounts to $1,666,680 ($0.134 per share) which compares to a net loss of $1,553,403 ($0.0154 per share) for the corresponding quarter of the 2010 fiscal year.


Financial Highlights

 
For the three and six-month periods ended September 30(In Canadian dollars - unaudited)
 
  2nd quarter ended September 30 Six-month period ended September 30
  2010 2009 2010 2009
         
Revenues 1,800,369   908,795 3,067,534 2,097,574
Net loss and comprehensive loss (1,666,680) (1,553,403) (3,081,288) (2,967,904)
Loss per share - basic and diluted ($0.0134) ($0.0154) ($0.0248) ($0.0305)
 
          Data from the
consolidated balance sheet
       
    September 30, 2010 March 31, 2010
Cash and cash equivalents    
2,629,912 7,724,497
         


Additional Highlights

  • D-BOX reports the highest ever quarterly revenues of its history, a 98% increase in comparison to the corresponding quarter of the last fiscal year. This reflects for the most part the deployment of MFX systems in commercial theatres and a winning sales strategy with selected Original Equipment Manufacturers (OEM);
  • Significant growth during the quarter of commercial theatre activities of which revenues amount to $624,379 in comparison to $49,225 last year. Revenues from activities with Original Equipment Manufacturers amount to $1,175,990 in comparison to $859,570 representing an increase of 37%;
  • Shortly after the end of the quarter, D-BOX announces a breakthrough of the European commercial theatre market with the first installations of MFX systems in the Netherlands. These installations reflect a new business model by which distributors can be used by the Corporation to accelerate growth and penetrate new markets;
  • D-BOX obtains four new feature presentations from studios while negotiating additional agreements to deploy MFX systems in North America, Europe and Asia. As of today, the Corporation has an installed base of 964 MFX systems deployed in 41 theatres in addition to a backlog calling for the installation of 248 additional MFX systems. This represents a 79% increase of deployed or ordered MFX systems since the end of the previous quarter; and
  • D-BOX signs after the end of the quarter, a multi-year development and sales agreement with US-based WMS Industries Inc., a leader in the design, manufacture and distribution of casino games and machines for the global casino gaming industry to incorporate its motion technology in future WMS products.


Commenting on the quarterly realisations, Mr. Claude Mc Master, President and Chief Executive Officer declared: "This most recent quarter is a reflection of our team's ability to execute our business plan and the ever-growing acceptance of D-BOX as a global motion technology standard. We are encouraged by the progression of our revenues and feel this trend is sustainable based on current business development initiatives and the feedback received from our customers."

Second quarter ended September 30, 2010

Revenues for the second quarter ended September 30, 2010 amounted to $1,800,369 up 98% from the $908,795 achieved for the corresponding period in 2009. Revenues consist of the sale of entertainment products to Original Equipment Manufacturers (OEM) which market the D-BOX technology under private labels, revenues derived from the sale of admission tickets in commercial theatres and the sale of MFX systems.

Revenues generated by commercial theatres amounted to $624,379 which compares to $49,225 for the corresponding quarter of the previous fiscal year. As at September 30, 2010, 678 MFX systems were deployed in 29 theatres which compares to 235 MFX systems deployed in 10 theatres as at September 30, 2009. As of today, 964 MFX systems are installed in 41 movie theatres.

Gross profit amounted to $648,057 (36% of revenues) which compares to $422,345 (46% of revenues) for the corresponding period last year. Net loss and comprehensive loss amounted to $1,666,680 ($0.0134 per share) which compares to $1,553,403 ($0.0154 per share) for the corresponding quarter last year.

Six-month period ended September 30, 2010

Revenues of the six-month period ended September 30, 2010 amounted to $3,067,534 up 46% from the $2,097,574 recorded last year. Revenues generated by commercial theatres amounted to $795,933 in comparison to $63,750 for the same period last year while revenues from sales to Original Equipment Manufacturers (OEM) amounted to $2,271,601 a 12% increase in comparison to the $2,033,824 realized in 2009.

Gross profit amounted to $1,212,314 (40% of revenues) which compares to $968,755 (46% of revenues) for the corresponding period of last year. Net loss and comprehensive loss amounted to $3,081,288 ($0.0248 per share) which compares to $2,967,904 ($0.0305 per share) last year.

Additional information in regards to the three and six-month periods ended September 30, 2010

The financial information in regards to the three and six-month periods ended September 30, 2010 should be read in conjunction with the Corporation's financial statements and Management's Discussion and Analysis dated November 12, 2010. These documents are available at www.sedar.com

Outlook

Generally speaking, D-BOX will set its priorities on two significant development paths, namely commercial theatres and the clientele of Original Equipment Manufacturers (OEM) each one of them addressing their specific market. In the short term, D-BOX intends to allocate the vast majority of its human, financial and material resources to the commercial theatre market offering the most interesting possibilities over this period of time.

In regards to commercial theatres, D-BOX intends to continue signing agreements with new movie exhibitors, to increase the number of motion units installed at existing exhibitors and to obtain new titles from movie studios. In North America, D-BOX now intends to widen its offering to larger national chains, more present, amongst others in large urban centres. These chains provide the potential to significantly accelerate the speed of deployment as well as the Corporation's current visibility.

As for the Original Equipment Manufacturers (OEM) clientele, the Corporation intends to continue its quest for established and recognized partners within their respective markets while possessing an international scope. The Corporation believes this strategy will allow for a reduction of its sales and marketing expenses while allowing for a more rapid deployment of its motion generation systems.

By increasing its visibility and brand awareness, the Corporation believes that all of its business segments will eventually experience sustained growth.

D-BOX also announces that its Board of directors has granted as of November 12, 2010, 100,000 share purchase options to one of its directors. The options were granted under D-BOX's Stock Option Plan. The exercise price of the options is $0.56 per share, being equal to the last closing price of D-BOX's common shares on the TSX Venture Exchange. The options expire in 10 years.

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 CodeTM, uses motion effects specifically programmed for each film, TV series or video game, which are sent to a motion generating system integrated within either a platform or a seat. The resulting motion is perfectly synchronized with all onscreen action, creating an unmatched realistic, immersive experience. To date, D-BOX Motion CodeTM is available on more than 900 titles. Accordingly, many prominent Hollywood studios have started embedding D-BOX Motion CodeTM on selected high definition Blu-rayTM and theatrical 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® is a registered trademark and D-BOX Motion CodeTM 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 AudetMr. Marc Jasmin
    Chief Financial Officer         Partner
    D-BOX Technologies Inc.Jasmin-Dumais Financial Communications Inc.
    450-442-3003, extension 296            514-231-2360
    laudet@d-box.commarc@comjamais.com