Toronto, Canada
US Deliveries Increase Over 700%
Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the industry's leading secure digital media distribution company, today announced its results for the first quarter ended March 31, 2007. Revenues for the first quarter of 2007 were 40% higher than for the same quarter last year. Revenues from the vibrant independent music sector grew by two-thirds, augmenting growth in major label customer billings. Musicrypt’s US market presence also accelerated through the first quarter, as the number of deliveries made via DMDS in the US rose to 271,000, over seven times those made in the first quarter of 2006.
“This continued rapid revenue growth is very encouraging to see, especially in the post holiday and March break period when music promotion activity is traditionally slow,” said Musicrypt President & CEO John Heaven. “Our financial position at March 31, 2007 is the strongest in our history, bolstered by the proceeds of the $10 million financing completed in the quarter.”
Summary of operating results for the three months ended March 31 ($Cdn):
| | 2007 | 2006 |
| Revenue | 122,809 | 87,748 |
| EBITDA | (511,430) | (482,524) |
| Net loss for the period | (528,693) | (530,115) |
| Loss per share (basic & diluted) | (0.01) | (0.02) |
The full text of the financial statements and Management Discussion & Analysis is available at www.musicrypt.com and at www.sedar.com.
In further news, the board of directors has granted 300,000 options with an exercise price of $0.32 and expiry date of May 24, 2012 to three officers, which were earned under a performance compensation plan approved by the independent compensation committee of the board in 2006. The exercise price for the previously announced grant of 150,000 options to an officer has been set at $0.35 per share and the expiry date as April 12, 2012. The board of directors has adopted a policy of setting option exercise prices at the greater of the three month weighted average trading price and the closing price on the day before the grant.
About Musicrypt:
Musicrypt's patented Digital Media Distribution System (DMDS) is the leading secure B2B digital media 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. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery of broadcast quality media via the Internet. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT and in the U.S. under OTCBB:MCYPF. For more information on Musicrypt, please call John Heaven at 905-763-3553 or visit www.musicrypt.com.
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.