Exhibit 99.1
Sonic Solutions Reports Record Results for Fourth Quarter and
Fiscal Year Ended March 31, 2004;
10th Consecutive Quarter of Increasing Revenues Drives All-Time Record Profits
NOVATO, Calif.--(BUSINESS WIRE)--May 4, 2004--Sonic Solutions (Nasdaq:SNIC)
announced today the financial results for the Company's fourth quarter and
fiscal year ended March 31, 2004.
Net revenue for the quarter was $17,302,000 compared to $9,467,000 for the
same period in the prior fiscal year. Net income for the quarter was $4,336,000
or $0.17 per diluted share compared to net income of $145,000 or $0.01 per
diluted share for the same period in the prior fiscal year.
Net revenue for the fiscal year ended March 31, 2004 was $56,853,000
compared to $32,718,000 for the prior fiscal year. Net income for the fiscal
year was $11,084,000 or $0.46 per diluted share compared to net income of
$2,537,000 or $0.13 per diluted share for the prior fiscal year.
Sonic will hold its fourth quarter and fiscal year ended March 31, 2004
earnings conference call on Tuesday, May 4, 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)
Three Months Twelve Months
Ended Ended
March 31, March 31,
(unaudited) (audited)
2004 2003 2004 2003
------- ------- ------- -------
Net Revenue $17,302 $ 9,467 $56,853 $32,718
Cost of Revenue 1,917 1,974 7,052 7,446
------- ------- ------- -------
Gross Profit 15,385 7,493 49,801 25,272
------- ------- ------- -------
Operating expenses
Marketing and sales 3,343 2,548 12,629 8,762
Research and development 5,724 3,825 19,731 10,625
General and administrative 1,466 792 4,669 3,101
------- ------- ------- -------
Total operating expenses 10,533 7,165 37,029 22,488
------- ------- ------- -------
Operating income 4,852 328 12,772 2,784
Other income (expense), net 136 (70) 238 (47)
------- ------- ------- -------
Income before income taxes 4,988 258 13,010 2,737
Provision for income taxes 652 113 1,926 200
------- ------- ------- -------
Net income $ 4,336 145 11,084 2,537
======= ======= ======= =======
Net income per share
applicable to common
Shareholders:
Basic $ 0.20 $ 0.01 $ 0.54 $ 0.15
======= ======= ======= =======
Diluted $ 0.17 $ 0.01 $ 0.46 $ 0.13
======= ======= ======= =======
Shares used in computing
net income per share:
Basic 21,766 17,564 20,459 16,391
======= ======= ======= =======
Diluted 25,197 20,807 23,889 19,311
======= ======= ======= =======
Sonic Solutions
Condensed Balance Sheets
(in thousands)
(audited)
March 31, March 31,
2004 2003
---------- ---------
Assets
Current assets:
Cash, cash equivalents and investments $ 36,182 $ 9,708
Accounts receivable, net of allowance for
returns and doubtful accounts of
$243 and $425, at March 31, 2004 and
2003, respectively 9,443 5,823
Inventory 560 531
Prepaid expenses and other current assets 1,400 869
-------- --------
Total current assets 47,585 16,931
-------- --------
Fixed assets, net 3,610 1,745
Purchased and internally developed software
costs, net 1,042 920
Acquired intangibles 2,898 1,345
Goodwill 15,533 6,715
Other assets 277 697
-------- --------
Total assets $ 70,945 $ 28,353
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 10,122 $ 7,087
Deferred revenue and deposits 4,965 1,840
Capital Leases 60 0
-------- --------
Total current liabilities 15,147 8,927
-------- --------
Capital lease, net of current portion 75 0
-------- --------
Total liabilities 15,222 8,927
Shareholders' equity:
Common stock 70,994 45,765
Cumulative foreign translation adjustment (16) 0
Accumulated deficit (15,255) (26,339)
-------- --------
Total shareholders' equity 55,723 19,426
-------- --------
Total liabilities and shareholders' equity $ 70,945 $ 28,353
======== ========
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. 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, PrePlay, DVD Producer,
Edit-on-DVD, HyperMux DL, NoNOISE, Sonic PrimeTime, RecordNow!, Simple Backup,
Sonic JumpSafe and Sonic SmartBalance are trademarks of Sonic Solutions.
AuthorScript, AutoDVD, DVDit!, DVD Fusion, MyDVD, OpenDVD, 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 Walker, 415-445-3234
carolyn@marketstreetpartners.com
rwalker@marketstreetpartners.com