Exhibit 99.1
Sonic Solutions Reports Results For Second Fiscal Quarter Ended
September 30, 2003; Revenue Increase Drives Record Quarterly
Profitability
NOVATO, Calif.--(BUSINESS WIRE)--Oct. 30, 2003--Sonic Solutions
(Nasdaq:SNIC) announced today results for the Company's second fiscal
quarter ended September 30, 2003.
Net revenue for the quarter was $12,695,000 compared to $7,488,000
for the same period in the prior fiscal year. Operating income for the
quarter was $2,261,000 and net income per diluted share was $0.08
compared to operating income of $726,000 and net income per diluted
share of $0.04 for the same period of the prior fiscal year.
Net revenue for the six months ended September 30, 2003 was
$24,717,000 compared to $14,872,000 for the same period in the prior
fiscal year. Operating income for the six months was $4,284,000 and
net income per diluted share was $0.16 compared to operating income of
$1,308,000 and net income per diluted share of $0.07 for the same
period of the prior fiscal year.
"Sonic's revenues grew during the September quarter, as DVD
recorder shipments continued to ramp and as our business expanded on
several fronts," noted Bob Doris, president & CEO of Sonic Solutions.
"The company's financial performance was excellent, on virtually all
income statement and balance sheet metrics. We're very much looking
forward to the last two quarters of our 2004 fiscal year, when we
expect that growth will accelerate, taking Sonic to new levels of
performance."
Sonic will hold its fiscal second quarter 2004 earnings conference
call on Thursday, October 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)
(unaudited)
Three Months Six Months
Ended Ended
September 30, September 30,
2003 2002 2003 2002
------- ------- ------- -------
Net Revenue $12,695 $ 7,488 $24,717 $14,872
Cost of Revenue 1,653 1,789 3,401 3,696
------- ------- ------- -------
Gross Profit 11,042 5,699 21,316 11,176
------- ------- ------- -------
Operating expenses
Marketing and sales 2,890 2,001 5,982 4,147
Research and development 4,840 2,250 9,021 4,142
General and administrative 1,051 722 2,029 1,579
------- ------- ------- -------
Total operating
expenses 8,781 4,973 17,032 9,868
------- ------- ------- -------
Operating income 2,261 726 4,284 1,308
Other income, net 51 28 1 62
------- ------- ------- -------
Income before income
taxes 2,312 754 4,285 1,370
Provision for income taxes 414 18 745 58
------- ------- ------- -------
Net income $ 1,898 736 3,540 1,312
======= ======= ======= =======
Net income per share
applicable to common
Shareholders:
Basic $ 0.09 $ 0.04 $ 0.18 $ 0.08
======= ======= ======= =======
Diluted $ 0.08 $ 0.04 $ 0.16 $ 0.07
======= ======= ======= =======
Shares used in
computing net
income per
share:
Basic 20,118 16,032 19,276 15,660
======= ======= ======= =======
Diluted 23,462 19,138 22,620 18,767
======= ======= ======= =======
Sonic Solutions
Condensed Balance Sheets
(in thousands)
September 30, March 31,
2003 2003 *
-------- --------
Assets (unaudited)
Current assets:
Cash, cash equivalents and investments $ 37,574 $ 9,708
Accounts receivable, net of allowance
for returns and doubtful accounts of
$411, at September 30, 2003 and
March 31, 2003, respectively 4,489 5,823
Inventory 655 531
Prepaid expenses and other current
assets 844 869
-------- --------
Total current assets 43,562 16,931
-------- --------
Fixed assets, net 2,381 1,745
Purchased and internally developed software
costs, net 956 920
Acquired intangibles 1,077 1,345
Goodwill 6,715 6,715
Other assets 1,417 697
-------- --------
Total assets $ 56,108 $ 28,353
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $ 7,054 $ 7,087
Deferred revenue and deposits 2,286 1,840
-------- --------
Total current liabilities 9,340 8,927
-------- --------
Shareholders' equity:
Common stock 69,567 45,765
Preferred stock 0 0
Accumulated deficit (22,799) (26,339)
-------- --------
Total shareholders' equity 46,768 19,426
-------- --------
Total liabilities and
shareholders' equity $ 56,108 $ 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 Producer,
Edit-on-DVD, NoNoise, OpenDVD, Sonic PrimeTime, RecordNow! and Simple
Backup are trademarks of Sonic Solutions. AuthorScript, AutoDVD,
DVDit!, DVD Fusion, MyDVD, PrePlay, ReelDVD, Scenarist, Sonic DVD
Creator 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.
Sonic Solutions -- 101 Rowland Way -- Novato, CA 94945 -- tel:
415.893.8000 -- fax: 415.893.8008 -- www.sonic.com
CONTACT: Sonic Solutions
A. Clay Leighton, 415-893-8000
Chief Financial Officer
clay_leighton@sonic.com
or
Market Street Partners
Carolyn Bass or Rob Hawkins, 415-321-2455
carolyn@marketstreetpartners.com
rob@marketstreetpartners.com