FINAL TRANSCRIPT
Destiny Media Technologies Inc.
Third Quarter Fiscal 2014 Earnings Release and Conference Call
Event Date/Time: July 14, 2014 — 5:00 p.m. E.T.
Length: 49 minutes
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
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FINAL TRANSCRIPT
July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
CORPORATE PARTICIPANTS
David Mossberg
Three Part Advisors, LLC — Investor Relations
Steve Vestergaard
Destiny Media Technologies Inc. — Chief Executive Officer
Fred Vandenberg
Destiny Media Technologies Inc. — Chief Financial Officer
CONFERENCE CALL PARTICIPANTS
Hubert Mak
Cormark Securities — Analyst
Robert Kecseg
Las Colinas Capital Market — Analyst
Joe Delany
Private Investor
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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FINAL TRANSCRIPT
July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
PRESENTATION
Operator
Good afternoon, ladies and gentlemen. Welcome to Destiny Media Technologies Inc. Third
Quarter Fiscal 2014 Earnings Release and Conference Call.
At this time, all lines are in listen-only mode. Following the presentation, we will conduct a
question-and-answer session. Instructions will be provided at that time for you to queue up for a
question.
If anyone has any difficulties hearing the conference, please press *, 0 for Operator
assistance at any time.
I would like to remind everyone that this call is being recorded on July 14, 2014.
I would now like to turn the conference over to Mr. David Mossberg, Investor Relations.
Please go ahead.
David Mossberg — Investor Relations, Three Part Advisors, LLC
Thank you, Leoni (phon). Thank you, everyone, for joining us on the call today. Before we
begin, we will be referring to today's earnings release, which was sent to the newswire earlier this
afternoon.
I should also remind everyone that this conference call could contain forward-looking
statements about Destiny Media Technologies within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based upon current beliefs and
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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FINAL TRANSCRIPT
July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
expectations of management and are subject to risk and uncertainties, which could cause actual
results to differ materially from the forward-looking statements.
Such risks are more fully discussed in the Company's filings with the Securities and
Exchange Commission and SEDAR. The Company does not assume any obligation to update
information contained in this conference call.
During this call we will discuss certain non-GAAP financial measures. These non-GAAP
financial measures are presented in supplemental disclosures. They should not be considered in
isolation of, or as a substitute for, or superior to financial information prepared in accordance with
GAAP and should be read in conjunction with the Company's financial statements with the SEC and
SEDAR.
The non-GAAP financial measures used by the Company may differ from similarly titled
measures presented by other companies. A reconciliation of non-GAAP financial measures to the
most comparable GAAP financial measure can be found on our earnings press release.
Our speakers today will be Steve Vestergaard, Chief Executive Officer, and Fred
Vandenberg, Chief Financial Officer.
With that, I'll turn the call over to Steve.
Steve Vestergaard — Chief Executive Officer, Destiny Media Technologies Inc.
Thank you. So thanks for attending our 2014 third quarter conference call. I'm going to
start here with a quick summary of the quarter, then I'll turn it over to Fred to do an analysis of the
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
numbers, and then I'll come back and continue with more detail and more colour on our strategy
and progress.
So our revenue grew 16 percent from the previous quarter Q2 2014, which is our
seasonally slow quarter, but more significantly we’re up 8 percent from Q3 last year, so year over
year is up 8 percent.
We've continued to generate positive cash flow even after subsidizing the R&D efforts on
Clipstream. So revenue growth this quarter was led by Play MPE with a number of wins this quarter.
We're working to cross the chasm with our disruptive Clipstream solution, and have been building
out several products around the engine to address various markets.
We've been recruiting a senior executive team, and we'll soon be ready to go on to the
next phase in the Company's growth.
So on that note, I'll turn it over to Fred.
Fred Vandenberg — Chief Financial Officer, Destiny Media Technologies Inc.
Thanks, Steve. Q3 fiscal 2014 is the first quarter where I can compare revenue growth with
Play MPE from the top line down with a comparable quarter in the prior year, that is contractual
terms with UMG in Q3 of 2013 is the same as it is in the current quarter. So when I'm comparing
revenue results we can start at the top line and not be comparing apples and oranges.
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
Play MPE revenue for the quarter grew by 9 percent compared to the prior year, and 18
percent over the immediately preceding quarter. This growth is fairly roughly divided into three
contributors—evenly divided into three contributors.
Play MPE revenue in the United States grew by 8 percent. This is really fuelled by 20
percent growth in USA independent label revenue. This segment has grown in 23 of the last 24
comparable quarters, so that represents six years where virtually every quarter has seen growth in
revenue.
The second one is growth in Australian revenue with the addition of Sony Music
Entertainment Australia, which had gone to a competing system for the last two plus years. And
lastly, we had experienced some positive exchange rates with the euro strengthening relative to the
US dollar.
There are two main areas where there was a small percentage positive impact on revenue,
but are worth commenting on further. First, in Q3 our new agreement took effect in the prior year,
and that had certain contractual adjustments, including a reduction in overall pricing. Since that
time, however, activity with UMG has grown substantially.
Overall usage has grown by 43 percent, while chargeable use has grown by 83 percent.
This growth comes from a number of areas. It's persuasive; we send more releases. Those releases
are larger, and those releases go to more people. And this growth is seen in Europe, the US, and
Australia.
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
During the quarter chargeable use from UMG exceeded the minimum in two of the three
months. However, this overage is not substantial and does not impact the revenue line significantly.
Continued growth, however, in chargeable use will be accretive to revenue.
Secondly, with the new agreement with Sony Music Entertainment Australia, we are now
the only system in Australia that is distributing all major label content. We believe that with this
network of use at Australian radio and with the Australian majors, independent labels or artists in
Australia will be a significantly—it'll be more advantageous to send through Play MPE, and that is, I
think, it'll have a greater chance of being heard at Australian radio if their songs are in Play MPE. We
have seen some recovery of this revenue in Q3, but again, that did not significantly impact revenue.
Moving on to expenses. Total operating unit expenses increased by 2.6 percent. In general,
there is really only minor fluctuations with small increases in a few areas. There was a small increase
in office rent, some cost with Google advertising, and fees associated with a consulting agreement
associated with the building out of the organizational structure and staffing needed to take
Clipstream to market.
The shift in overall costs allocated between sales and marketing and development really
comes from Play MPE staff shifting focus from technical developments to more business
development-type activities. We will continue to send staff to meet with labels regularly throughout
the United States, Australia, and Europe.
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
This along with the completion of the web-based encoder and obtaining marketing metrics
on our US recipient list will be keys to growing revenue over the near term.
Lastly, we were able to grow cash reserves up by approximately 170,000 to over 1 million.
This is primarily the result of cash provided by operations.
And with that, I'll turn it back over to Steve, and I'll be available on the call for questions
later on.
Steve Vestergaard
Thank you, Fred. So I know investors are looking for time lines for further sales growth on
both products. So what I'm going to do is I'm going to recap some of the successes for both
products, what the opportunities are, what the challenges we've identified have been, and how we
found solutions to those challenges.
So it's taking us a bit longer to solve near-term challenges than I'd hoped in previous calls.
But the high-margin growth is coming, and the opportunity for both products is as big as ever.
So I'll start with Play MPE, which is an automated security solution that record companies
use to securely send pre-release music to trusted recipients, such as radio stations. It's based
around our locking and watermarking patents and a suite of encoding, server, and player software
applications, and our own server infrastructure in North America, Europe, and Australia.
So our business model at Play MPE is to charge the record companies a fee for each
recipient they offer free music to. We provide the recipients free tools to access the music, and are
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
integrated into a number of third party systems, making the recurring revenue stream extremely
sticky.
There's a seasonality to usage from one quarter to the next, but a predictability when
comparing same quarters from year to year, so we offer investors the safety of recurrent revenue
stream that profitably pays the bills for existing expenditure levels.
As we add new revenue margins are high, as most of our expenses are fixed. So we're
expecting to be cash flow positive as we roll out Clipstream.
We continue to grow independent revenue, as we've done in every quarter but one in the
last six years, and revenue levels for our UMG contract are finally above the monthly minimums
they are required to pay us. That means UMG growth will show on our reported revenues going
forward.
We're still expecting to grow internationally, and have been expanding sends into new
markets. Revenue impact has been marginal to date, but this growth is still coming, and the efforts
in these new markets over the last few years is expected to bear fruit.
We were able to add a brand-new sub-label, Sony Australia, effective this quarter, and we
were able to license our meta data to Shazam, as per our previously announced contract. The year
one revenues from this contract are minimal, but it offers a big benefit to our customers.
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
So Shazam identifies music for consumers and third party music offerings, and our
customers know they can get their information accurately into Shazam's database the minute the
song is made commercially available.
So we entered into a new global agreement with Universal in May of 2013 that merged a
number of agreements we had with their labels around the world into a single international
agreement. Some of the terms in that contract caused a reduction in total UMG revenue in 2013,
but other terms have accelerated clauses that incented worldwide usage and a term that gave us
minimum monthly revenues.
This agreement made business sense because of the largest major, UMG usage in any new
territory would pave the way for us to do business with the other majors and independents in that
brand-new territory.
So one of our challenges with the majors has been high staff turnover at the executive
level, and some of the people we've dealt with in both Europe and Asia have moved on. This among
other reasons has delayed rollout into the new territories, and there's been some erosion of existing
major revenue at some labels and some key markets as regional competitors with minimal solutions
have been able to take some business away from us, generally because of lower cost, but also
because other solutions are often very simple to use.
So the advantages of our system are overwhelming, but as a relationship-driven business
has meant that we’ve had to invest in meeting new people in the music distribution role to
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
communicate those advantages and to listen to their feedback. These efforts have been productive
and we expect to not only grow usage in these organizations, but also to recover business that has
gone to competitive solutions.
So our solution is extremely powerful with a permission-based account management
system where the administrator at the label can assign different tasks, such as encoding audio or
video, managing lists, creating the alerts, setting permissions, et cetera, to various staff within the
label. But with that sophistication comes complexity, so some of the feedback we are receiving is
that promotions staff would use the system a lot more if a simpler web-based encoder was
available.
So this encoder’s been under development for a couple quarters now. We expect another
big uptick in growth when it launches later this year.
This new software will be easier to use, meaning it will used more widely within the record
labels, but it has all the security reporting of the main system. Importantly, it gives autonomy to the
sub-labels, who currently have to send their—have their sends encoded by head office.
So going forward, the outlook for growing Play MPE revenues while maintaining expenses
is very bullish and the challenges we’ve identified are mostly behind us.
So next I want to discuss our $1 billion-plus revenue opportunity for our disruptive
Clipstream technology. So Clipstream is a new streaming format that plays everywhere without
proprietary streaming servers and player plug-ins.
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
There’s been a lot of confusion on this product. Much of that has been because of my
communication style. So I want to back up and try to bring some clarity to what the offering is and
what our strategy is.
So the first thing is it’s important to note the distinction between the Clipstream engine
and products and services that we’re building around that engine. It’s confusing because companies
that are competitors to some of our new products are actually potential customers for our engine.
So just as a company can make engines that can be licensed for use in cars, motorbikes,
generators, airplanes, et cetera, they can still make their own—they can additionally offer their own
branded cars, motorbikes, generators, airplanes, et cetera. So the opportunity for us is that we can
roll out the products, but we can also license the engine, and that’s our key rollout strategy.
So I’m going to go through them kind of one by one, but starting with the engine. Our
engine has extremely compelling advantages. Some high-level examples include that we can get
high definition quality without player plug-ins. And once the video’s encoded in our format the
video will play 15 years into the future as future browser iterations will be backwards compatible
with our format. So compare that to looking back 15 years ago from today, back then video was
encoded in the Real Networks format. Those videos won’t play today. Publishers hate encoding in
formats that go away over time.
Secondly, our video will play on any standards-based modern browser on any device with
adequate processing resources, including devices that haven’t even been invented yet. Compare
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
that to the cacophony of formats that need to be supported right now, so we save the industry a
fortune in transcoding, which is converting into those various formats and hosting all of those
different formats.
Third, our solution plays well on databases. Because it is simple it is really well suited for
applications like online retail, where it could be used for cheaply producing product, how-to type
videos.
Next, we’ll be the only solution with meaningful security. All of the new HTML5 formats
are completely unencrypted. We can watermark and lock videos to play on only authorized
machines. This creates a business model for renting videos that are protected from piracy, but it
also allows users to protect privacy by isolating who has access to that video.
High-volume users, like advertisers, will appreciate that our solution recycles streams
through caching, saving infrastructure and bandwidth costs. Advertisers also like that we’re the only
mobile-friendly interactive solution, so they can create interactive ads with interactive reporting.
So as we’ve talked to customers, we found that there are over two dozen separate
verticals for us. Each vertical requires its own website, its own pricing model, and its own product or
service with its own feature set. Knowing that we can’t do everything in parallel, we’ve kind of gone
back and we’ve decided to start with four.
So the first is that we’re trying to license the engine directly. So an example customer
would include a large ISP that wants to offer their own branded YouTube style content to their
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
users, or an online bidding site or online dating site that wanted integrated video, or maybe a video
editing software that wanted to save as Clipstream to make video hosting seamless to their
customers. There are literally hundreds of examples like this, and some of our largest opportunities
will come from these big, but long sale cycle customers.
Second, we’ve developed a cloud product. So if you go to my.clipstream.com, you can
actually try it yourself. You don’t have to pay anything to try it. It’s drag-and-drop and automated. It
makes it really easy to create and host video.
Third, we’re selling video questionnaires to market research companies through the
website surveys.clipstream.com. Our customers in turn resell to some of the largest companies in
the world doing test marketing of movie trailers, commercials, product launches, et cetera. So we’re
well set to become a standard in this vertical.
Fourth, we’re test marketing our new ad format. So you can see our format yourself at
tinyurl.com/clipstream-ad, or tinyurl.com/clipstream-survey-ad. Since February, we’ve test
marketed our own ads to the tune of millions of impressions over a dozen separate websites, and
the quality of service has been extremely high, so we’re very proud of this ad technology.
So as we’ve expected during our first phase one soft launch of the engine in our first three
products, early adopters customer feedback has identified a number of weaknesses that we need to
fix. And we’ve actually been doing a lot of development since December.
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
So going through the issues, for the engine itself we found that the way we deliver video
has caused a low quality of experience to some users. In US, the average bandwidth is about 9
megabits per second; most of the world gets more than that.
For us to offer HD quality we only need 4 megabits a second. For us to offer YouTube
quality we need about 2 megabits per second. Unfortunately, we found that a fraction of the users
are getting worse than YouTube quality, and that’s unacceptable.
And the issue is the way our system works is causing the ISP to throttle bandwidth. So I
stress this isn’t a Clipstream issue, but it’s the networking below Clipstream. So Clipstream looks at
the available bandwidth and it automatically degrades the quality to fit whatever bandwidth’s that’s
available.
So we’ve identified that users that get speed tests showing that they’re capable of 10
megabits per second often get actual performance and actual throughput as low as a 0.5 megabit
per second. So I don’t want to get too technical, but I want to get technical enough to show you that
we’ve identified the four issues with networking that have been causing the problems. And two of
the four have already been fixed.
So users should have seen quality start to creep up over the last six weeks, and you’ll see it
continue to creep up. Our goal is for everybody that uses—every viewer that uses Clipstream to get
the 960 HD quality.
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
So we currently use our own servers for the Clipstream logic and Amazon for the actual
raw hosting. We’ve almost finished a new development module that lets us easily integrate into any
third party hosting system, while keeping the auditing and logic on our servers. So we expect to light
up Google hosting as a second supplier to Amazon in the next few weeks.
The main remaining networking issue is about the way JavaScript, the technology we’re
using for playback communicates with servers. So when you connect to a server there’s a delay
when you connect; then the data transfers at high speed. So with the other server-based solutions,
they only connect once and only get the delay once. So when you’re comparing us to them you’re
comparing apples to oranges.
Unfortunately with our solution we encountered the delay every time we send a chunk of
data. So we’ve currently chosen a buffer size of two seconds, which means you only wait two
seconds from when you click play until the video starts playing. But that short buffer size means that
every two seconds there’s another delay, another connection, another delay, which effectively
throttles the effective bandwidth.
So luckily we found solutions and we’ve been working on the solutions for a number of
months, and we’re well on our way to finishing the adaption of Clipstream to eliminate this
connection delay. And we expect most users will get HD when we launch that new version of the
engine.
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
So going through the products. For our cloud product we’ve had a really positive response
from early adopters, such as web developers, but we’ve also identified key required features that
other cloud offerings have that we missed.
So we’ve been building out these features and are finally getting close to being to the end
of the wish list that we’re getting back from early customers. For investors who’ve signed up for the
cloud offering, they may have noticed that every few weeks this year a new suite of features has
been added to the offering. The feedback on the improvements has been extremely positive, and
when we feel that we get to the end of the list we’re going to ramp up our search engine
advertising, which is pretty minimal and targeted right now.
One feature we’ve had demand for in this product is the corporate version that isn’t credit
card driven, but where the company can give individual accounts to individual employees. This will
create a global bill basically segmented into different billing units in the company. We think we’ll be
able to do some really large corporate offerings when this is completed.
Okay. The next product, our market research product; we’ve been under heavy pressure to
launch our security pack from the market research users. So the current offering that we’ve given
them has minimal security.
The new pack, which has very sophisticated security, is in final testing, and we expect
market research usage will increase a lot when it goes live. So you can actually expect an
announcement on this one really shortly.
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
Finally, our ad product at this point is a proof of concept. We can offer it as a service to
advertisers, but it involves doing some encoding by hand because there’s no ad encoding tool yet.
So we’re also trying to understand the features that ad customers require.
So with an old streaming product we had 10 years ago we had signed up 150 ad agencies
to sell into, sell into their customers. We had more than half the Fortune 100 companies using us.
This is a really lucrative model because their sales team sells to the end customer for us,
but it involves integrating it to their existing workflow. So we’ve been working with companies and
consultants in this space to try and build out the features and capabilities they need to turn this
commercial prototype into a product they can pay us for.
This vertical is probably the most lucrative and one we’re going to focus on heavily, but we
need the engine and the other two products kind of finished first.
We’re also working on development for features that will be required for future product
verticals. A really large one is our movie security pack, which will extend the security abilities of the
survey security pack to protect extremely valuable content. So this technology will rely on IP we use
in our Play MPE solution.
So what’s really important to understand is that our advantages and shortcomings vary
depending on the opportunities and depending on the vertical. So as an example, the quality of our
market research and ad product is perfectly fine already today because the video never needs to go
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
full screen, so the networking issue doesn’t come up, whereas that is an issue with the cloud and
movie offering.
On the other hand, people may be willing to wait longer than two seconds for a movie to
buffer, making that issue go away even without any networking fixes. As another example, someone
selling a movie really cares about security, but someone showing an ad would love to have their ad
pirated and they actually don’t want any security.
Another example, a market research company being low volume wouldn’t care about our
recycling of streams, but that would be really important to an ad doing tens of millions of
impressions. So we’re putting a lot of effort into being really deliberate in our approach to
segmenting our offerings and strategies in our first phase, but we’re soon ready to enter the second
phase of our commercial rollout.
So we’ve been aggressively recruiting senior-level executives since the beginning of the
year to run the Clipstream sales unit, and we’ll be building out large sales team underneath them as
the products show commercial traction. And we’ve wanted to have solid product offerings with
early adopters in each vertical as they start to work with us.
I understand why market sentiment has turned a bit negative. The reality of building a
disruptive business takes more time than people might hope, but we expect the Clipstream suite of
products to be just as big as we’ve always said it will be.
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
So to summarize our outlook, we’re taking a disciplined approach to product development
to four verticals and are building a security system for a fifth. Second, we recognize that it’s
important to hire the right people, and we’ve been recruiting with the idea of building an executive
team of people that have done it before and who can do it for us very quickly once the products and
early customers are there for them. We’re timing to bring these high salaried individuals on as we
finish our development phase in the early verticals.
Third, ongoing development in each product category will be customer driven. The new
features will come through the sales team. We think that this is the secret to crossing the chasm of
moving Clipstream into a highly visible mainstream offering that is the first choice for anyone
wanting to do video because the advantages are so clear and compelling.
Four, I’ve been advised not to give time lines or forward-looking guidance, but we’re not
far from showing our first larger traction.
So on that note, I’ll open the call to questions.
Q&A
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session.
Should you have a question, please press #, followed by 1 on your touch-tone phone. If you are
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
using a speakerphone, please lift your handset before pressing any keys. One moment please for
your first question.
Your first question comes from Hubert Mak from Destiny Media (sic) [Cormark Securities].
Please go ahead.
Hubert Mak — Cormark Securities
Hi. Actually, I'm from Cormark Securities. Hey, guys. Maybe a first question I’ll go with Play
MPE. I wasn't quite clear, but I understand from your comments that you're seeing chargeable
transactions from Universal up 83 percent, and I guess you're seeing the exceeding global
minimums for two months. So going forward, can you comment in terms of like should we expect to
see accelerated growth come from UMG as they roll out these international countries? As well, can
you comment as to what's the progress with rolling out internationally, given I think you did
mention you guys were having some challenges with senior execs there, I guess, turnovers. So can
you just kind of comment in terms of the outlook of what you see with UMG specifically?
Steve Vestergaard
Fred, did you want to take that one first?
Fred Vandenberg
Yeah. Sure. I guess the chargeable usage has grown—well, it's almost doubled. It's grown
by 83 percent from the prior year, and that's all under the umbrella of the global minimum. So if
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
you're expecting to see growth beyond that, I don't know if I can answer that question because now
they'll start seeing increases in charges.
They are growing throughout Europe and small growth in the United States and growth in
Australia, so I don't know—what I think is that growth is coming from a number of places. First of
all, what is subject to being charged is growing, the number of deliveries is growing, and I don't
think you—even though they're getting charged more I don't think you slow down that process. I
mean it's pure speculation, but we are seeing them roll out Play MPE in different territories, so I
mean the truth will be told in the future, I think.
Steve Vestergaard
Yeah. Another comment on Universal is they're kind of like the anchored tenant. So if I
own a shopping mall I probably want to have a Walmart in my mall because it almost doesn't matter
how much I make off the Walmart, it builds the rest of my mall, so it'll bring in all the other stores.
And the same thing happens here.
When Universal rolls into a new market it makes it easier for us to sell to Warner and Sony.
They kind of follow Universal's lead because Universal's about 45 percent of the major market, and
then once we have the three majors then the independents really have almost no choice but to use
us.
And Fred was kind of alluding to that with Australia that Australia's a market that we've
completely locked up, and so if I'm an independent and I want to get to radio, if I send them a CD or
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
I use an alternate system, I've got a real low chance of having a song played because radio's only
looking for one place to get the song.
So we are expecting growth from Universal. We don't like to speculate because it's a little
bit out of our control, but Universal will be the catalyst to help us grow with the other majors and
with the independents.
Hubert Mak
Okay. I understand how it brings on additional revenue from other companies or other
music labels. I guess what I'm—maybe the other way to ask is you have two months above
minimums. I know in the past few quarters you guys—it's been at that minimum, right? So now that
you have two months that are over, so presumably you would—should I not—should we not expect
that the revenue from UMG be…
Steve Vestergaard
Yeah. Exactly. So what's been happening is Universal's been growing, but that growth is
being masked because it's been growing below the minimum. So even though they're using it more
they're not paying us more because they were—their usage prehistorically has been below the
minimum. A big catalyst to get them to use it a lot more is that the web-based encoder is going to
allow the promotions staff all over the place to encode directly.
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
Currently a lot of that—if they want to encode something they're having to go through
head office. It's often like a three to five-day wait for them to get head office to encode something
for them, so this web-based encoder's going to increase usage a lot.
Going into new territories is going to increase usage a lot and increasing their
distributions. We're—Fred's being a bit cautious because sometimes in some territories if the billing
goes up they become more careful about who they send to. In the US, for example, they like to keep
their usage close to what their historic US minimum used to be, so I'm assuming that global has
probably given them a line item that they're trying to work underneath.
So we're kind of working to line items. But that said, all the indication is that usage is going
to continue to grow at the rate that it's been growing.
Hubert Mak
Okay. I think I understand what you're trying to say there. Okay. Maybe just a question on
the Clipstream; you made a number of comments here in terms of the, I guess, the four key
verticals, and it sounds like each of those you're getting some feedback, and there's some
technology and proof that needs to be made. Can you maybe just—I don't know if you can just sum
that all together, but call on sort of two key verticals, whether it be advertising—sorry, I guess it’s
not advertising—maybe whether it be web developers, but in terms of basically you guys are
working on improvements can you just concisely tell us like when the technology will be completed,
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
like the time frame? And whether you can comment when we should start seeing maybe revenue
coming through for Clipstream from...
Steve Vestergaard
So revenue's coming through for Clipstream now. In terms—so first of all, the cloud
product is not just a web developer product. That's a product that anybody can use. You could use it
yourself. It's drag-and-drop. It's kind of meant for anybody that wants to put video content on the
web, but it's fairly inexpensive, so typical persons coming in and getting a $5 a month account or a
$20 a month account. So a new user comes in in a quarter would generate $60 for us. It's not
meaningful.
But what we need is that core engine because that's what gets us to the other
opportunities. So for example, the ad vertical behind the scenes is going to be powered by the
cloud. So we need to do the cloud first. And the reason we're targeting web developers is in some
ways they're the pickiest customers, and they help us figure out what's missing from the system.
So if you—I’m kind of going around about in answering your question. Currently, the bulk
of the revenue that we're showing, and I know the revenues this quarter were a bit of a pittance,
but that's all coming from market research. And the reason why it's not more is because the security
pack's not there for them. And a lot of the big—if I'm doing a test marketing in a movie trailer or
something, I don't want the version that I don't use to show up on the Internet somewhere. So
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
we're very, very close to launching that security pack, and that's going to be a big catalyst for
growing the market research.
The ads we can sell today, currently we sell them as a service because there's no encoder
software, so they can't self-serve yet. The bigger offerings with the ads are going to require
integration into both their work flow, but also into existing solutions. So as an example, typically
when an ad goes out it'll go through a real-time bidding network to figure out what ad to show to
what consumers. You probably notice that ads follow you around; different people coming to the
website will see different ads. Then you got to work with their current hosting partner.
That was why it was so important for us to adapt the back end so that we can plug in other
providers. Currently we're supporting—or we're about to support Google, and we're currently
supporting Amazon. And we set it up that if an advertiser has their own relationship with an Akamai
or Rackspace or something like that that we can just plug that in. Then we need to work with
companies that do auditing and the companies that do reporting.
So what we're doing at this stage is we're working with consultants and early ad agencies
to basically tell us what to build. So we're kind of working with them to figure out what their wish
lists are for us to get into that world, into that network.
In terms of the engine, again, I don't like to give artificial deadlines. That's not worked well
for me in the past, but we're very, very close. So as I said, there were four issues that were causing
the networking to be slow. Two of the four have been addressed. The remaining two we’re well
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
under way. When it is fixed, or when the—when everybody’s getting HD we will press release and
announce that. So imminent, but I'm not going to commit to a time line.
Hubert Mak
Okay. Maybe just a last one here; would it be fair to say that the web developers would be
sort of your first key markets, I mean, outside of your market research, but…
Steve Vestergaard
No, actually our—so market research is going to be the first big, big market.
Hubert Mak
Right.
Steve Vestergaard
Currently, we're very targeted. We're targeting web developers, but we'll expand—when
we're ready we'll expand our Google search—Google and other search advertising to target more of
the general population. What will typically happen is you'll have somebody that's a keener working
for a big company, and they'll come across and they'll set up a $5 account with us. But if they like it
they can now go in internally and sell the corporation.
So on the cloud product our biggest revenues are going to come from the corporate sales,
but some of the feedback we've got from the corporate guys is that they want to have a better
billing system. They don't want to be putting through credit cards. They want us to give them a
master bill, and have that master bill be broken into sub-accounts so that they can have maybe
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
accounting’s got an account and maybe marketing's got a different account, and that we need to
break it all out for them.
So as we go through the selling process, with each vertical and then each customer type
within the vertical we're finding little—not huge development, but we're finding little development
projects that we have to build out to make—basically we're digitally shrink wrapping the products.
So we're going from raw technology to something that's really easy for people to buy.
Hubert Mak
Okay. All right. And then are you able to provide (phon) what developers are—or whatever
your uptake is into the cloud, physically what the uptake rate for the cloud offering, is there any sort
of quantitative metrics that you can provide us in terms of so we can see where we're at…
Steve Vestergaard
I mean it's fairly minimal right now, but that's intentional because what we're trying to do
is get just enough customers to give us feedback on what we need to build. I actually don't know the
exact number, but going forward we're going to try and figure out some way to give people a better
sense of that. New investors may not realize it, but on the front page of our corporate site, if you go
to the bottom right, you can click and you can see real-time statistics when MPE songs go out.
We're trying to think through is there something along those lines that we can do to give
people a sense of what's happening? And in future quarters we're probably going to do something
like that.
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
Hubert Mak
Okay. Thanks. I'll pass the line.
Operator
Thank you. Your next question comes from Robert Kecseg from Las Colinas Capital Market.
Please go ahead.
Robert Kecseg — Las Colinas Capital Market
Hi, Steve.
Steve Vestergaard
How’s it going?
Robert Kecseg
Pretty good. I wanted to ask you about the Clipstream. You remember recently I sent you
some questions from a guy that books a lot of different video companies, or video-related
companies, and he was, I guess, kind of not getting the significance of the Clipstream service on the
transcoding. I guess I was wondering, do these web developers really appreciate the benefit that
that creates? That's my (phon) question.
Steve Vestergaard
So you've got to think of a web developer as kind of a middle man in a way. So the web
developer's building a website for some third party. Some third parties care about supporting
mobile and some don't.
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
For example, our corporate site, we actually outsourced it to a web development company
a couple years ago, and they just came back to us and said video doesn't work on mobile. And that's
what a lot of web developers just tell their customers is on a PC it works great; on mobile you just
get a little black box when you come in there.
For the ones that do care they can go through big third parties. So they'll go through like
somebody like a Brightcove or an Akamai—I mean, sorry, well, Akamai does it too, but an Amazon
or Google's got a service actually to do it for them.
Robert Kecseg
Mm-hmm.
Steve Vestergaard
Some of them use YouTube, but the transcoding is still happening behind the scenes. So if
you upload to YouTube, YouTube has the expense of having to translate to those various video
formats. So...
Robert Kecseg
Right.
Steve Vestergaard
The pane, sometimes the pane is hidden, so maybe pushed back through a third party
supplier. So you go to somebody that says, hey, the video plays everywhere, but behind the scenes
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
they had to convert and host it into those various formats. But that's only one of our benefits, so
another benefit is we're simpler.
So it's quick and dirty to make a video. Things like, I talked about like online dating sites or
online retail; they're currently not doing video because it's too difficult, whereas we can integrate
with them and kind of automate the process.
Our security is an obvious big one. Being playerless means that you've got a much higher
install rate, so if I'm an advertiser I'm going to reach more people because everybody's going to be
able to play the video back. I'm not relying on them to have a plug-in installed.
We also go to devices that currently don't have video. A lot of the Internet TVs today are
not compliant with the standard. The new ones as the come out that are standards-based, our video
will just play on those Internet TVs. And so the longevity's another real big one.
If I encode the video in our format, well into the future—I said 15 years, it could be 20
years from now—browsers in the future will still play our video because the browser is required to
be backwards compatible. By comparison to that, if you encoded in H.264 last year, now this year
you've got to encode in H.265, and then you got WebAMP coming out and everything else.
So the advantage is going to really depend on what the vertical is. For web developers in
particular, we're kind of using them as a test audience because, like I said, they're a fairly difficult
technical audience and they give us the best feedback. And they also kind of amplify things because
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
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contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
one web developer could do 100 websites. But that's not the vertical that we're going to be
targeting long term.
Robert Kecseg
Okay. And then kind of connected with that question, are there others out there trying to
develop something along the lines of what Clipstream does as far as the transcoding aspect that you
were talking about so that…
Steve Vestergaard
Yeah. So there's lots of companies that are trying to play everywhere. If you Google the
term ‘multiscreen’, for example, that's a big thing, everybody wants multiscreens. They want their
single video to play on a wide variety of devices.
It’s a big problem for the industry; it’s a problem that we solved. But those companies
tend to solve it—well, always solve it by doing transcoding in behind the scenes. Or the other way
they do it is they'll use a common one like H.264 that reaches a lot of devices, but not all of them.
But in terms of doing what we're doing, there's only one way to get video to play without a
plug-in, and that's the JavaScript, and that's what we've filed all of our patents about. So anybody
that tried to go down this path would be infringing on our patents—our pending patents, I should
say.
Robert Kecseg
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
All right. Okay. And then I just have one question on the Play MPE. It's kind of a repeat
from before, but I was just thinking on your site where it shows the 71,000-plus registered users, do
you have any more feedback on repeat use from the same registered users so that you would see
that it was building and people liked it enough where they were continuing to use it? Because it
seems like 71,000 is a lot; it sounds like a lot.
Steve Vestergaard
Yeah. So the users are not our customers. So they're the recipients. And typically they like
getting free music, so once they're signed up and the labels are sending them music they're not
going anywhere, so they tend to be really sticky.
One issue that we do get, though, is sometimes we get users that the labels don't care
about that much. So for example, maybe I'm a small Internet radio station or something like that. So
we've got a lot of users that don't get that much music, and so there's opportunity for us to grow
things there by maybe playing with our pricing to make it easier for labels to send to more—more of
our lists.
Robert Kecseg
Okay. All right. Great. Thank you.
Steve Vestergaard
Thank you.
Operator
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
Thank you. Ladies and gentlemen, as a reminder, should you have a question, please press
*, followed by 1.
Your next question comes from Joe Delany, private investor. Please go ahead.
Joe Delany — Private Investor
Steve, can you just comment on your stock price and the history of the movement of that?
And where it's trading now and where you think it should be trading?
Steve Vestergaard
You know what? The stock market would make a liar out of me. Investor sentiment is
always hard to predict, so we try to concentrate on the fundamentals.
If I was to guess what happened, people probably got a little exuberant, a little ahead of
where the business was. But it works both ways. The business plods along. I mean we build the
business and then sometimes the sentiment can get behind what's happening.
You know what? I've been purchasing pretty heavily myself in the last few months, so I'm
kind of putting my money where my mouth is. But I'm not in a position to predict what the stock
price is going to do.
Joe Delany
Yeah. But you can give your opinion as to where it should be trading.
Steve Vestergaard
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is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
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July 14, 2014 — 5:00 p.m. E.T.
Destiny Media Technologies Inc. Third Quarter Fiscal 2014 Earnings
Release and Conference Call
I have an opinion where it should be trading, but I don't think it's appropriate for me to
speak to that publicly. I mean I think it should be trading higher, but I'm not going to give you a
number.
Joe Delany
That's fair enough.
Operator
Thank you. Mr. Vestergaard, there's no more questions at this time. Please proceed.
Steve Vestergaard
Okay. Well, thank you. I know sometimes it's intimidating to ask questions in this forum.
Both Fred and I are very approachable, as is David Mossberg and his team at our IR company, Three
Part Advisors. So we're all very accessible, both by phone and e-mail, so if you have any further
questions please feel free to reach out.
Otherwise, thank you for attending, and talk to you in the next quarter.
Operator
Ladies and gentlemen, this concludes your conference call today. We thank you for
participating, and ask that you please disconnect your lines.
*****
"Though CNW Group has used commercially reasonable efforts to produce this transcript, it does not represent or warrant that this transcript
is error-free. CNW Group will not be responsible for any direct, indirect, incidental, special, consequential, loss of profits or other damages or
liabilities which may arise out of or result from any use made of this transcript or any error contained therein."
« Bien que CNW Telbec ait fait tous les efforts possibles pour produire cet audioscript, la société ne peut affirmer ou garantir qu’il ne
contient aucune erreur. CNW Telbec ne peut être tenue responsable de pertes ou profits, responsabilités ou dommages causés par ou
découlant directement, indirectement, accidentellement ou corrélativement à l’utilisation de ce texte ou toute erreur qu’il contiendrait. »
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