Exhibit 99.1
Sonic Solutions Reports Results For Third Fiscal Quarter Ended
December 31, 2003
NOVATO, Calif.--(BUSINESS WIRE)--Feb. 3, 2004--Sonic Solutions
(NASDAQ: SNIC)
-- Revenue increase drives record quarterly profitability
-- Revenue of $14.8 million, up 77% over prior year
-- Net income of $3.2 million or $0.13 per share, up 197% over
prior year
Sonic Solutions (NASDAQ:SNIC) announced today results for the
Company's third fiscal quarter ended December 31, 2003.
Net revenue for the quarter was $14,834,000 compared to $8,379,000
for the same period in the prior fiscal year. Operating income for the
quarter was $3,636,000 and net income per diluted share was $0.13
compared to operating income of $1,147,000 and net income per diluted
share of $0.06 for the same period of the prior fiscal year.
Net revenue for the nine months ended December 31, 2003 was
$39,551,000 compared to $23,251,000 for the same period in the prior
fiscal year. Operating income for the nine months was $7,920,000 and
net income per diluted share was $0.29 compared to operating income of
$2,456,000 and net income per diluted share of $0.13 for the same
period of the prior fiscal year.
Sonic will hold its fiscal third quarter 2004 earnings conference
call on Tuesday, February 3, 2004 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 Nine Months
Ended Ended
December 31, December 31,
2003 2002 2003 2002
-------- ------- -------- --------
Net Revenue $14,834 $8,379 $39,551 $23,251
Cost of Revenue 1,734 1,777 5,135 5,472
-------- ------- -------- --------
Gross Profit 13,100 6,602 34,416 17,779
-------- ------- -------- --------
Operating expenses
Marketing and sales 3,304 2,067 9,286 6,214
Research and development 4,986 2,658 14,007 6,800
General and administrative 1,174 730 3,203 2,309
-------- ------- -------- --------
Total operating expenses 9,464 5,455 26,496 15,323
-------- ------- -------- --------
Operating income 3,636 1,147 7,920 2,456
Other income (expense), net 101 (39) 102 23
-------- ------- -------- --------
Income before income taxes 3,737 1,108 8,022 2,479
Provision for income taxes 529 29 1,274 87
-------- ------- -------- --------
Net income $3,208 1,079 6,748 2,392
======== ======= ======== ========
Net income per share
applicable to common
Shareholders:
Basic $0.15 $0.06 $0.34 $0.14
======== ======= ======== ========
Diluted $0.13 $0.06 $0.29 $0.13
======== ======= ======== ========
Shares used in computing
net income per share:
Basic 21,516 16,680 20,023 16,000
======== ======= ======== ========
Diluted 24,770 19,131 23,377 18,327
======== ======= ======== ========
Sonic Solutions
Condensed Balance Sheets
(in thousands)
December 31, March 31,
2003 2003 *
----------- ----------
Assets (unaudited)
Current assets:
Cash, cash equivalents and investments $38,930 $9,708
Accounts receivable, net of allowance for
returns and doubtful accounts of $265 and
$425, at December 31, 2003 and March 31, 2003,
respectively 8,943 5,823
Inventory 344 531
Prepaid expenses and other current assets 1,028 869
----------- ----------
Total current assets 49,245 16,931
----------- ----------
Fixed assets, net 3,043 1,745
Purchased and internally developed software
costs, net 978 920
Acquired intangibles 943 1,345
Goodwill 6,715 6,715
Other assets 1,432 697
----------- ----------
Total assets $62,356 $28,353
=========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $7,398 $7,087
Deferred revenue and deposits 4,493 1,840
----------- ----------
Total current liabilities 11,891 8,927
----------- ----------
Shareholders' equity:
Common stock 70,056 45,765
Preferred stock 0 0
Accumulated deficit (19,591) (26,339)
----------- ----------
Total shareholders' equity 50,465 19,426
----------- ----------
Total liabilities and
shareholders' equity $62,356 $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)
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. Such
forward-looking statements include, without limitation, statements
concerning or relating to implications of the Company's revenues and
financial results for the third quarter ended December 31, 2003,
including any statements containing words such as "believes,"
"expects," and words of similar import or statements of management's
opinion. These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, including financial results, market performance or
achievements to differ materially from any future results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause such differences
include, but are not limited to, the timely introduction and
acceptance of new products, costs associated with new product
introductions, the transition of products to new hardware
configurations and platforms, risks related to the Company's
acquisitions, and other factors detailed in the Company's filings with
the Securities and Exchange Commission, including its recent filings
on Forms 10-K, 10-Q and 8-K, including, but not limited to, those
described in the Company's Form 10-Q for the fiscal quarter ended
September 30, 2003. 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.
CONTACT: Sonic Solutions
A. Clay Leighton, 415-893-8000
clay_leighton@sonic.com
or
Market Street Partners
Carolyn Bass or Rob Hawkins, 415-321-2455
carolyn@marketstreetpartners.com
rob@marketstreetpartners.com