D-BOX Technologies Inc.

D-BOX Technologies Inc.

June 19, 2009 10:05 ET

D-BOX demonstrates a significant increase of its fourth quarter sales

    LONGUEUIL, QC, June 19  - D-BOX Technologies inc. "D-BOX",
(DBO.A on the TSX Venture Exchange) announces revenues of $4,442,655 for its
2009 fiscal year ending March 31, 2009, a 23% increase in comparison to the
$3,625,434 achieved for its 2008 fiscal year ended March 31, 2008. The net
loss for the year amounts to $5,327,138 ($0.0572 per share) which compares to
a net loss of $4,916,997 ($0.0603 per share) for the 2008 fiscal year.-------------------------------------------------------------------------

    For the three-month
     and fiscal year ended
     March 31
     (in dollars per share --------------------------------------------------
     with the exception of                                     Fiscal year
     the loss per share)   Q4/2009       Q4/2008          2009          2008
    Revenues             1,076,872       725,046     4,442,655     3,625,434
    Net Loss            (1,521,511)   (1,883,105)   (5,327,138)   (4,916,997)
    Basic and diluted
     loss per share        (0.0162)      (0.0220)      (0.0572)      (0.0603)

    Additional Highlights :

    - Annual sales increased 23% while quarterly sales increased 49% compared
      to last year's corresponding periods;
    - D-BOX realises a breakthrough in the commercial theatre market with the
      recent installation of systems in four US cities and the presentation
      of two feature presentations incorporating motion technology. D-BOX
      continues to actively develop this new market, targeting a commercial
      model based for the most part on a royalty on each ticket sold;
    - D-BOX introduces during the year its new hybrid GPH-120 system (Video
      games and Home Theatre) which will carry a suggested retail price of
      $US 2,999 (plus accessories) allowing to target a new category of
      consumers. This system is scheduled to be commercially available
      shortly coinciding with an expansion of the distribution network.


    Commenting on the yearly realisations, Mr. Claude Mc Master, President and
CEO of D-BOX stated: " We continue to advance in the right direction as
witnessed by the progression of our sales and the accelerated development of
promising new markets. The recent launch in commercial theatres of the first
feature presentations incorporating audio, video and motion (AVM) has proven
to be an important success and amongst others, opens the road to a very
interesting business model. We will continue to develop this market, which
through an increase in visibility, should stimulate and support the eventual
development of our traditional markets of home theatre and video gaming."

    Fiscal year ended March 31, 2009

    For the fiscal year ended March 31, 2008, revenues totalled $4,442,655 or
a 23% increase compared with the $3,625,434 achieved in 2008. This increase is
explained by sales of home entertainment systems which increased from
$2,165,590 last year to $2,883,502 this year or 33%. This is partly explained
by the allocation of resources and targeted sales and marketing efforts
combined with the introduction of new products during the course of the last
year. Sales to manufacturing customers in the commercial entertainment segment
increased 7% to $1,559,153 which compares to $1,459,844 in 2008.
    During the fiscal year ended March 31, 2009, gross profit amounted to
$1,686,828 (38% of revenues) compared to $1,320,634 (36% of revenues) in 2008.
This increase in gross margins is mostly explained by a higher sales volume
and the favourable impact of exchange rate fluctuations which acted as a
counterpart to higher manufacturing overhead costs explained by the expansion
and outfitting of our production facilities earlier in the fiscal year.
    For the fiscal year ended March 31, 2009, net loss and comprehensive loss
amounted to $5,327,138 ($0.0572 per share) compared with $4,916,997 ($0.0603
per share) for the 2008 fiscal year. The increase in net loss and
comprehensive loss in fiscal 2009 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, namely in the video
gaming and commercial theatre markets.

    Three-month period ended March 31, 2009

    For the fourth quarter ended March 31, 2008, revenues amounted to
$1,076,872, up 49% from $725,046 for the corresponding period last year. Sales
of systems for home entertainment decreased 6% amounting to $434,769 for the
current fiscal year in comparison to $462,301 last year. On the other hand,
sales generated by manufacturing customers on the commercial entertainment
side of the business, including our most significant customer in the arcades
business, amounted to $642,103 up 144% when compared to $262,742 of sales
generated in the fourth quarter of last year.
    For the fourth quarter ended March 31, 2009, gross profit amounted to
$338,748 (31% of revenues) compared with $236,213 (33% of revenues) for the
corresponding period last year. This fluctuation of gross margin is also
explained by the increase in the volume of sales and the favourable impact of
exchange rate variances which offset the previously mentioned increase of
fixed manufacturing costs.
    For the fourth quarter ended March 31, 2009, net loss and comprehensive
loss amounted to $1,521,511 ($0.0162 per share) compared with $1,883,105
($0.0220 per share) for the fourth quarter of the 2008 fiscal year. The
decrease in the quarterly net loss and comprehensive is mainly explained by
the significant increase in sales, by better gross margins and the by the
governmental assistance and refundable tax credits booked during the quarter.

    Additional information in regards to the fiscal year and three-month
    period ending Marc 31, 2009

    The financial information in regards to the three-month period and fiscal
year ended March 31, 2009 should be read in conjunction with the financial
statements and the interim management and discussion analysis dated June 17,
2009. These documents are available at www.sedar.com


    Generally, D-Box will focus development initiatives on three major areas:
movie theatres, video games, and home theatre.
    In the commercial theatre market, the Corporation intends to sign
agreements with new exhibitors, to increase the number of sets installed at
existing ones and to obtain additional movies from the studios. D-BOX believes
that tapping into this potential new market could drive significant revenues
while boosting recognition of D-BOX technology which in turn could stimulate
the sales of home entertainment systems. In regards to the video game market,
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.
    The Corporation will continue to closely monitor its level of cash while
targeting a capital structure allowing for the realization of its business
plan including the deployment of new commercial theatre rooms and the sales
and marketing of its systems. As at March 31, 2009, there existed uncertainty
in regards to the Corporation's ability to continue its activities without
having to raise additional capital. The Corporation is seeking financing which
will to ensure ongoing activities and the realization of its plan.

    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