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YANGAROO REPORTS ANNUAL AND FOURTH QUARTER RESULTS ENDING DECEMBER 31ST 2010

^{Published on 2011-04-29 06:06:24 - Market Wire}
 

TORONTO, April 29 /CNW/ - YANGAROO Inc. (TSXV: YOO) (OTCBB: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the year and fourth quarter ended December 31, 2010. Revenue for the fourth quarter of 2010 was 44% higher than the revenue for the same period of 2009 and revenue for the fiscal year of 2010 was 3% higher than the revenue in fiscal 2009.  The increase in revenue is a result of greater use of DMDS for music video delivery by the major labels and the independent sector.  Revenue is expected to continue to increase as billable US music audio and video deliveries grow, independent sector usage increases, and billable advertising delivery volumes rise.

Total operating expenses for the year ended December 31, 2010 increased by 16% compared to the same period in fiscal 2009, primarily due to recruiting costs and management changes, the addition of a new advertising division and debenture interest. In the fourth quarter of 2010, management continued its cost cutting initiative through reducing costs and increasing productivity by consolidating offices.  The Company also reduced its expenditures on consultants by terminating or suspending certain engagements and restructuring compensation terms with existing consultants that more closely link compensation to results. The benefits of the Company's cost cutting measures will be reflected in fiscal 2011.

As part of the Company's annual review for indications of impairment, it determined there to be a reduction in value of $1,543,575 in its long lived asset group, which includes patents, investment in technology and deferred development costs.  The Company believes that its cost savings initiative and the recent restructuring of management will enhance the Company's economic future.

Recent period highlights include a multi-year agreement with Viacom's BET Networks to use YANGAROO's Digital Media Distribution System (DMDS) technology for delivery of all artist and music-related audiovisual content to BET properties, an agreement with the Academy of Country Music to power online review and professional member voting for the 46th Annual Academy of Country Music Awards and receiving the grant of Canada patent number 2,349,797 titled "Biometric Rights Management System". YANGAROO named advertising industry veteran Anthony G. Miller to the board of directors and appointed former advertising executive Karen Dealy to President of U.S. Advertising Operations.

"In the fourth quarter we made great strides in expanding our reach beyond the music industry to the advertising industry. The revenue growth in Q4 is just the beginning." said YANGAROO CEO Scott Wambolt. "With music video revenues continuing to grow, and the advertising rollout well underway, we expect revenue growth to continue and accelerate."

Summary of operating results for the years and fourth quarters ended December 31:

The full text of the financial statements and Management Discussion & Analysis is available at [ www.yangaroo.com ] and at [ www.sedar.com ].

About YANGAROO:

YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS replaces the physical distribution of audio and video content for music, music videos, and advertising to television, radio, media, retailers, award shows and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.

Named one of Canada's Top 100 Tech Companies for 2009 by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.

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.