Exhibit 99.1
Sonic Solutions Reports Record Results for
First Quarter Ended June 30, 2004;
11th Consecutive Quarter of Increasing Revenues
NOVATO, Calif.--(BUSINESS WIRE)--Aug. 2, 2004--Sonic Solutions
(Nasdaq:SNIC) announced today the financial results for the Company's
first quarter ended June 30, 2004.
Net revenue for the quarter was $17,909,000 compared to
$12,022,000 for the same period in the prior fiscal year. Net income
for the quarter was $3,987,000 or $0.16 per diluted share compared to
net income of $1,643,000 or $0.08 per diluted share for the same
period in the prior fiscal year.
Sonic will hold its first quarter ended June 30, 2004 earnings
conference call on Monday, August 2, 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 Ended
June 30,
(unaudited)
2004 2003
-------- --------
Net Revenue $17,909 $12,022
Cost of Revenue 1,861 1,748
-------- --------
Gross Profit 16,048 10,274
-------- --------
Operating expenses
Marketing and sales 3,912 3,092
Research and development 6,548 4,181
General and administrative 1,200 977
-------- --------
Total operating expenses 11,660 8,250
-------- --------
Operating income 4,388 2,024
Other income (expense), net 60 (50)
-------- --------
Income before income taxes 4,448 1,974
Provision for income taxes 461 331
-------- --------
Net income $ 3,987 1,643
======== ========
Net income per share applicable to common
Shareholders:
Basic $ 0.18 $ 0.09
======== ========
Diluted $ 0.16 $ 0.08
======== ========
Shares used in computing
net income per share:
Basic 22,044 18,434
======== ========
Diluted 25,461 21,557
======== ========
Sonic Solutions
Condensed Balance Sheets
(in thousands)
June 30, March 31,
2004 2004 (a)
--------- ---------
(unaudited)
Assets
Current assets:
Cash, cash equivalents and investments $ 67,781 $ 36,182
Accounts receivable, net of allowance for
returns and doubtful accounts of $243 and
$284, at March 31, 2004 and June 30, 2004,
respectively 6,990 9,443
Inventory 596 560
Prepaid expenses and other current assets 1,197 1,399
--------- ---------
Total current assets 76,564 47,584
--------- ---------
Fixed assets, net 3,800 3,610
Purchased and internally developed software costs,
net 1,195 1,042
Acquired intangibles 2,689 2,898
Goodwill 15,533 15,533
Other assets 298 278
--------- ---------
Total assets $100,079 $ 70,945
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,419 $ 1,145
Accrued liabilities 8,690 8,977
Deferred revenue and deposits 5,165 4,965
Capital Leases 65 60
--------- ---------
Total current liabilities 15,339 15,147
--------- ---------
Capital lease, net of current portion 50 75
--------- ---------
Total liabilities 15,389 15,222
Shareholders' equity:
Common stock 95,977 70,994
Cumulative foreign translation adjustment (19) (16)
Accumulated deficit (11,268) (15,255)
--------- ---------
Total shareholders' equity 84,690 55,723
--------- ---------
Total liabilities and shareholders' equity $100,079 $ 70,945
========= =========
(a) March 31, 2004 balances are derived from the audited financial
statements included in the Company's 2004 Annual Report on Form
10-K.
About Sonic Solutions (Nasdaq:SNIC)
Based in Marin County, California, Sonic Solutions (Nasdaq "SNIC")
(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. InterActual, a subsidiary of Sonic Solutions, is the
leading provider of software and services that enable cutting-edge DVD
interactivity in computers and next-generation home entertainment
platforms. 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.
Sonic, the Sonic logo, Sonic Solutions, AuthorScript, AutoDVD,
Backup MyPC, CinePlayer, DVD Fusion, DVDit, DVD Producer, Edit-on-DVD,
HyperMux DL, InterActual, MyDVD, NoNOISE, OpenDVD, PrePlay, RecordNow,
ReelDVD, Scenarist, Simple Backup, Sonic DVD Creator, Sonic JumpSafe,
Sonic PrimeTime, and Sonic SmartBalance, are trademarks or registered
trademarks of Sonic Solutions in the U.S. and/or other countries. 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, 415-445-3234
carolyn@marketstreetpartners.com
Rob Walker, 415-445-3234
rwalker@marketstreetpartners.com