Toronto, Ontario
Revenues Continue to Climb
Musicrypt Inc. (TSX-V: MCT, OTCBB: MCYPF), the industry's leading secure digital media distribution company, today announced its results for the first quarter ended March 31, 2006.
The growth in revenue seen in 2005 continued into the first quarter of 2006, as revenues increased 23% over revenues for the first quarter of 2005, and were 15% higher than revenues for the preceding fourth quarter of 2005. The addition of new customers, combined with greater use of Musicrypt’s patented Digital Media Distribution System (DMDS) by existing customers, led the growth in revenues.
“Through the first quarter of 2006 Musicrypt continued its progress on many fronts, producing higher revenues from new and current customers. In the last four months we signed four new revenue generating customers, expanded our strategic alliance with Nielsen BDS, launched version 4.0 of our technology-leading DMDS, made chart history with Warner Music’s superstar artist Pearl Jam’s World Wide Suicide single, augmented our management team and received a US patent grant”, said Musicrypt President & CEO John Heaven.
The loss for the first quarter of 2006 was 19% higher than the first quarter of 2005. However, the loss for the first quarter of 2006 was lower by 20% from the loss for the preceding fourth quarter of 2005. The increase in the first quarter loss compared to the first quarter of 2005 was primarily the result of costs associated with the company’s US market rollout, the expenses for which largely commenced after last year’s first quarter. The loss per share for the first quarter of 2006 was $0.02 per share, unchanged from $0.02 per share for the first quarter of 2005.
Please see the full text of the financial statements and management discussion and analysis available on www.sedar.com.
In further news, Musicrypt has cancelled 400,000 options that had been granted and reserved for incentive compensation. The independent compensation committee of the board has approved the grant of up to 450,000 options for new executive team members, 340,000 of which are issuable when certain performance targets are attained. These options have been priced at the three-month average trading price prior to grant of $0.21, expire five years from the date of grant and are subject to standard vesting and hold period provisions.
About Musicrypt
Musicrypt’s patented Digital Media Distribution System (DMDS) is the leading secure B2B digital delivery solution for the music industry. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. The first application of DMDS replaces the physical distribution of new musical recordings by record companies from the studio, internally, and to radio stations with more secure, more effective and less costly digital distribution of broadcast quality media via the internet. For more information on Musicrypt, please visit www.musicrypt.com or call John Heaven, President & CEO at 905-763-3553.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.