D-BOX Technologies Inc.

D-BOX Technologies Inc.

August 24, 2011 05:05 ET

D-BOX Technologies reports a strong increase of its quarterly sales

Buoyed by the company's two segments, revenue growth reaches 90%
for the first quarter ended June 30, 2011

LONGUEUIL, QC, Aug. 24, 2011 - D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology, announced today revenues of $2,409 k for the first quarter ended June 30, 2011 which compares to revenues of $1,267 k for the first quarter of the 2011 fiscal year. Gross profit increased 104% from $563 k in 2011 to $1,147 for the first quarter of the 2012 fiscal year.

Operational highlights

  • As at June 30, 2011, in the commercial theatre segment, 2,480 D-BOX MFX systems are installed or in backlog in regards to 99 theatres worldwide representing a 30% growth rate in comparison to the 1,901 D-BOX MFX systems installed or in backlog as at March 31, 2011;

  • Since March 31, 2011, six feature presentations were obtained from different Hollywood studios including titles such as : Fast Five, Pirates of the Caribbean: on stranger tides, Super 8 and Harry Potter and the Deathly Hallows: part 2, which were all ranked no 1 at the box-office during the weekend of their launch; and

  • D-BOX names Mr. John Carey as Vice-President Worldwide Sales for the company's theatrical segment. Prior to his hire, Mr. Carey held the position of Vice-President, Worldwide sales products and services for Dolby Laboratories Inc.

Financial highlights

  • D-BOX reports quarterly revenues of $2,409 k, representing an increase of 90% compared to the corresponding quarter of the previous fiscal year. More specifically, recurring revenues stemming from utilization rights, rental and maintenance based on the use of MFX systems more than doubled, increasing from $163 k to $474 k in comparison to the first quarter of last year;

  • Sales to OEM's increase in parallel to sales of motion generation systems for commercial theatres. They increase by 43% from $1,096 k to $1,565 k;

  • Cash flows used by operating activities before changes in non-cash operating assets and liabilities amount to $1,125 k in the first quarter of 2012 which compares to $1,065 k $ last year. This variation is explained amongst other things by a non-recurring disbursement of $150 k paid in regards to the graduation to the Toronto Stock Exchange. Considering the investments realised during the quarter in commercial theatre deployment and working capital, D-BOX had cash and cash equivalents of $16,591 k as at June 30, 2011.

For the first quarter ended June 30 (in thousands of CA$ except per-share  amounts)

(see Additional Information section on page 2)
        Q1 2012 Q1 2011
Revenues     2,409 1,267
Net loss     (1,793) (1,442)
Basic and diluted loss per share     (0.0110) (0.0116)
ConsolidatedBalance Sheet data
        June 30, 2011 March 31, 2011
Cash and cash equivalents   16,591 20,940

Commenting on the quarterly realisations, Mr Claude Mc Master, President and Chief Executive Officer of D-BOX declared: "We are currently experiencing a strong progression of our revenues including an accelerated growth of recurring revenues from the commercial theatre segment. In parallel, the OEM segment continues to progress thus offering D-BOX two complementary ways to grow. With a strong cash balance and excellent business development opportunities with major commercial theatre exhibitor chains over the next few months, I can only be very enthusiastic and confident in regards to the future of D-BOX."

First quarter ended June 30, 2011

Revenues for the quarter ended June 30, 2011, which include the sale of motion generation systems to OEMs, movie theatre system sales and revenues in regards to admission tickets sold in commercial theatres amounted to $2,409 k representing a 90% increase in comparison to the $1,267 realized in 2011.

Considering the gradual installation of commercial theatre motion seats (MFX) during the course of the quarter, as of June 30, 2011 there were 2,480 commercial theatre motion seats (MFX) either installed or in backlog in regards to 99 auditoriums around the world which compares to 1,901 commercial theatre motion seats (MFX) installed or backlog in regards to 78 auditoriums as of March 31, 2011. These systems generated $844 k during the quarter, or close to a five-fold increase in comparison to the $171k generated in the corresponding quarter of the previous fiscal year. In regards to revenues generated by Original Equipment Manufacturers (OEM's), they stood at $1,565 k in the first quarter of the 2012 fiscal year which compares to $1,096 k for in the first quarter of the 2011 fiscal year or a 43% increase.

For the quarter ended June 30, 2011, the net loss stands at $1,793 k ($0.0110 per share) which compares to a net loss of $1,442 k ($0.0116 per share) for the last fiscal year. The increase in the loss is explained for the most part by higher sales and marketing expenses relating to the development of the commercial theatre segment compensated by the increase of gross profit.

Additional Information in regards to the Three-month Period ending june 30, 2011

The quarterly financial information should be read in conjunction with the Corporation's interim condensed consolidated financial statements and management and discussion analysis of the quarter ended June 30, 2011 dated August 23, 2011. The quarterly financial information should, amongst others, be read in conjunction to the information relating to the adjustments of the 2011 comparative figures following the adoption of IFRS (International Financial Reporting Standards) which are explained at note 8 of the consolidated financial statements here-above mentioned. These documents are available at www.sedar.com

Outlook

Broadly speaking, D-BOX will focus on two major development areas: commercial theatres and Original Equipment Manufacturers "OEMs", which each target a specific business market. In the short term, D-BOX intends to allocate the vast majority of its resources to the commercial theatre segment which offers the most attractive prospects.

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 obtain new titles from movie studios. In North America, D-BOX intends to widen its offering to larger national chains, more present, amongst others in large urban centres. The Corporation is currently in direct discussion with some large commercial theatre exhibitor chains in North-America and hopes to conclude deals within the next few months. These chains provide the potential to significantly accelerate the speed of deployment and raise the Corporation's current visibility. In Europe and in Asia, the Corporation intends to pursue its development with the goal to breakthrough into major markets within the next few quarters.

As for OEM clients, the Corporation intends to continue developing its business relationships with well-established and recognized partners within their respective segments which possess a certain level of international clout. The Corporation believes this strategy will result in reduced sales and marketing expenses and faster deployment of its motion generation systems. By increasing its visibility and brand awareness, the Corporation believes that its two business segments will eventually experience sustained growth.

About D-BOX

D-BOX Technologies designs, manufactures and commercializes leading edge technology motion systems mainly for the entertainment and simulation industries. With its unique, patented technology, D-BOX Motion CodeTM, motion effects are specifically programmed for each visual content and sent to a motion generating system integrated within either a platform or a seat. The resulting motion is perfectly synchronized with the onscreen content, creating an unmatched realistic, immersive experience. To date, major Hollywood Studios have D-BOX Motion CodeTM available on feature films, DVDs and Blu-raysTM. By reaching agreements with various industry leaders, D-BOX's award-winning motion technology is gradually proving itself as a new global standard. D-BOX is a publicly traded company listed on the Toronto Stock Exchange under the symbol DBO.

D-BOX(R) 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. The Corporation disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Luc Audet
    Vice-President and Chief Financial Officer
    D-BOX Technologies Inc.
    450-442-3003 ext 296
    laudet@d-box.com 

    Investor Relations
    Marc Jasmin CMA, President
    Jasmin Financial Communications
    514-231-2360
    marc@comjasmin.com