D-BOX announces its first quarter results

LONGUEUIL, QC, Aug. 20, 2008 (Canada NewsWire via COMTEX) -- D-Box Technologies Inc. (DBO.A on the TSX venture exchange) announces revenues of $1,133,533 for its first quarter of its 2009 fiscal year which ended June 30, 2008 which compares to revenues of $802,538 for the first quarter of the 2008 fiscal year or a 41% increase. The net loss for the quarter amounts to $1,061,822 ($0.0116 per share) which compares to a net loss of $997,850 ($0.0153 per share) for the corresponding quarter of the fiscal 2008 year.

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....Financial Highlights

....Selected Financial Information
....For the three month period ended June 30, -------------------------------
....(dollar, except loss per share) .................Q1/2009 ..........Q1/2008
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....Revenues ......................................1,133,533 ..........802,538
....Net Loss .....................................(1,061,822) ........(997,850)
....Basic and diluted loss per share ...............($0.0116) ........($0.0153)

....................................... As of June 30, ..As of March 31,
....................................... 2008 .............2008

....Cash and cash equivalents .....................5,152,573 ........4,376,881
....Short-term investments ........................4,102,610 ........4,074,953
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....Total short-term liquidities ..................9,255,183 ........8,451,834
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....Additional Highlights

....- 41% increase in revenues in comparison to the corresponding quarter of
......last year explained by an increase in sales of D-Box systems for the
......home theatre market.

....- Increase in the number point of sales in regards to specialty retail
......chains offering D-BOX systems. Their number stands at close to thirty
......in North-America on June 30, 2008.

....- Strengthening of the D-BOX balance sheet through a private placement
......realised with an important US institution for a gross amount of
......1,750,000 $. The available liquidities as of June 30, 2008 stand at
......approximately $9.3 million compared to $8.5 million as of March 31,
......2008.

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Commenting the quarterly accomplishments, Mr. Claude McMaster, President and Chief Executive Officer of D-BOX stated: "We are very encouraged by the progression we realised during the quarter. In addition to increasing our sales of D-BOX systems, we are also able to expand and improve our sales network through an interesting breakthrough with speciality chains. By making our systems available to a growing number of consumers, we continue increasing the notoriousness and visibility of our technology while setting the ground for the next steps of our development. To do so, we can count on a solid balance sheet, which will allow us to grow the Company and accelerate the development of new market segments."

Three-month period ending June 30, 2008

For the quarter ended June 30, 2008, revenues increased 41%, amounting to $1,133,533 compared to $802,538 for the corresponding quarter of last year. This increase is explained by higher revenues generated by the sale of home entertainment systems (D-BOX systems), which saw their sales, increase from $336,585 to $859,136 or a 156% increase. On the other hand, sales generated by the commercial entertainment sector (products for commercial arcades) amounted to $274,397 down from the $466,954 realized in the first quarter of 2008.

For the quarter ended June 30, 2008, gross profit amounted to $465,585 (41% of revenues) compared to $279,449 (35% of revenues) for the corresponding quarter last year. This favourable evolution of the gross profit is mostly explained by the increase in revenues.

Sales and marketing expenses amounted to $753,853 for the quarter ended June 30, 2008 compared to $543,883 for the corresponding quarter last year. The hiring of additional resources and the development of marketing tools to support the increased sales efforts in regards to home entertainment systems mostly explains this increase.

Administration expenses amounted to $522,055 for the quarter ended June 30, 2008 compared to $462 214 for the corresponding quarter of last year. The increase in administration expenses is mostly explained by additional payroll expenses caused by the growing number of new employees as well as by an increase in overall administration expenses explained by the company's ongoing expansion.

For the first quarter ended June 30, 2008, financial expenses net of foreign exchange gains and losses realized on amounted to $6,201 compared to net financial expenses of $70,808 for the corresponding quarter of last year. This variation is mostly explained by investment income realized on funds received following the issuance of equity during the course of the 2008 fiscal year and during the course of the first quarter of the current fiscal year.

Outlook

Generally speaking, D-BOX will focus in the short and midterm on three main areas of development; home theatre and video games in the home entertainment sector and traditional movie theatres in the commercial entertainment sector. In regards to home entertainment, the Company aims to expand its sales and marketing network with an accrued emphasis on speciality chains. At the same time, D-BOX will increase development of the home video game market by introducing a more accessible gaming chair allowing for an expansion of its targeted market. D-BOX also aims to sign a first agreement with a manufacturer of gaming devices as well as a first licensing agreement with a video game development studio.

Within the commercial entertainment segment, D-BOX is currently in discussions with certain theatre owners as well as with a limited number of movie studios with the idea of presenting a first feature presentation incorporating audio, video and motion (AVM) in a commercial movie theatre. Eventual penetration of this new market could prove to be a significant source of revenue while contributing in increasing the recognition of the technology.