Exhibit 99.1
Sonic Solutions Reports Results For First Fiscal Quarter Ended June
30, 2003; Record Quarterly Revenue Drives Record Quarterly Profit
NOVATO, Calif.--(BUSINESS WIRE)--July 30, 2003--Sonic Solutions
(Nasdaq:SNIC) announced today results for the Company's first fiscal
quarter ended June 30, 2003.
Net revenue for the quarter was $12,022,000 compared to $7,384,000
for the same period in the prior fiscal year. Operating income for the
quarter was $2,024,000 and net income per diluted share was $0.08
compared to operating income of $582,000 and net income per diluted
share of $0.03 for the same period of the prior fiscal year.
"We are very pleased by the momentum Sonic continues to generate
with our OEM customers and technology partners, and the fact that it's
now showing up strongly in our reported financial results," commented
Bob Doris, Sonic's president. "In the June quarter Sonic generated the
highest quarterly revenue, gross margin and net income in the history
of the company. This is a great start to what we believe will be a
very rewarding year for our shareholders."
Sonic will hold its fiscal first quarter 2004 earnings conference
call on Wednesday, July 30, 2003 at 1:30 p.m. (PT)/4:30 p.m. (ET).
Investors are invited to listen to Sonic's quarterly conference call
on the investor section of the Sonic Web site at www.sonic.com. A
replay of the call will also be available via Webcast at
www.sonic.com.
Sonic Solutions
Condensed Statement of Operations
(in thousands, except per share amounts)
Three Months Ended
June 30,
(unaudited)
2003 2002
-------- -------
Net revenue $12,022 $7,384
Cost of revenue 1,748 1,907
-------- -------
Gross profit 10,274 5,477
Operating expenses
Marketing and sales 3,092 2,146
Research and development 4,181 1,892
General and administrative 977 857
-------- -------
Total operating expenses 8,250 4,895
Operating income 2,024 582
Other income (expense), net (50) 34
-------- -------
Income before income taxes 1,974 616
Provision for income taxes 331 40
-------- -------
Net income $1,643 576
======== =======
Net income per share applicable to common
shareholders:
Basic $0.09 $0.03
======== =======
Diluted $0.08 $0.03
======== =======
Shares used in computing net income per
share:
Basic 18,434 15,289
======== =======
Diluted 21,557 19,307
======== =======
Sonic Solutions
Condensed Balance Sheets
(in thousands)
June 30, March 31,
2003 2003 *
------------------------
Assets (unaudited)
Current assets:
Cash, cash equivalents and investments $12,022 $9,708
Accounts receivable, net of allowance for
returns and doubtful accounts of $411
and $425, at June 30, 2003 and March 31,
2003, respectively 5,287 5,823
Inventory 746 531
Prepaid expenses and other current assets 915 869
------------ -----------
Total current assets 18,970 16,931
------------ -----------
Fixed assets, net 1,884 1,745
Purchased and internally developed software
costs, net 968 920
Acquired intangibles 1,211 1,345
Goodwill 6,715 6,715
Other assets 1,214 697
------------ -----------
Total assets $30,962 $28,353
============ ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $6,902 $7,087
Deferred revenue and deposits 2,143 1,840
------------ -----------
Total current liabilities 9,045 8,927
------------ -----------
Shareholders' equity:
Common stock 46,613 45,765
Preferred stock 0 0
Accumulated deficit (24,696) (26,339)
------------ -----------
Total shareholders' equity 21,917 19,426
------------ -----------
Total liabilities and shareholders'
equity $30,962 $28,353
============ ===========
* March 31, 2003 balances are derived from the audited financial
statements included in the Company's 2003 Annual Report on Form 10-K.
About Sonic Solutions (NASDAQ: SNIC - News)
Based in Marin County, California, Sonic Solutions
(http://www.sonic.com) is the world's leading supplier of DVD creation
software for professional, industrial and consumer applications. The
majority of major film releases on DVD have been produced on Sonic's
professional DVD authoring systems in studios around the world.
Sonic's MyDVD(R) and DVDit!(R) are the most widely used DVD creation
applications by consumers and video enthusiasts and are the solutions
of choice among the key PC and after-market drive suppliers. Sonic's
RecordNow(TM) is a leading solution for audio and data mastering.
Sonic's AuthorScript(R), the DVD and CD formatting and burning engine
that underlies Sonic's applications, is the most widely deployed DVD
software engine and has been licensed by Adobe, Microsoft, Sony, and
many others.
Forward Looking Statements
The above paragraphs of this press release may contain forward
looking statements that are based upon current expectations. Actual
results could differ materially from those projected in the forward
looking statements as a result of various risks and uncertainties
including, among others, the timely introduction and acceptance of new
products, costs associated with new product introductions, the
transition of products to new hardware configurations and platforms
and other factors, including those discussed in the Company's annual
and quarterly reports on file with the Securities and Exchange
Commission. This press release should be read in conjunction with the
Company's most recent annual report on Form 10-K, Form 10-Q and
Registration Statement on file with the Securities and Exchange
Commission, which contain a more detailed discussion of the Company's
business including risks and uncertainties that may affect future
results. The Company does not undertake to update any forward looking
statements.
Sonic, the Sonic logo, Backup MyPC, CinePlayer, DVD PrePlay, DVD
Producer, Edit-on-DVD, OpenDVD, PrimeTime, RecordNow and Simple Backup
are trademarks of Sonic Solutions. AuthorScript, AutoDVD, DVD-Audio
Creator, DVD Creator, DVDit!, DVD Fusion, MyDVD, NoNOISE, ReelDVD,
Scenarist and Sonic Solutions are registered trademarks of Sonic
Solutions. All other company or product names are trademarks of their
respective owners and, in some cases, are used by Sonic under license.
Specifications, pricing and delivery schedules are subject to change
without notice.
CONTACT: Sonic Solutions
A. Clay Leighton, 415-893-8000 (Chief Financial Officer)
clay_leighton@sonic.com
or
Market Street Partners
Carolyn Bass, 415-321-2455
carolyn@marketstreetpartners.com
Rob Hawkins, 415-321-2455
rob@marketstreetpartners.com