Exhibit 99.1
Sonic Solutions Reports Results for Second Quarter Ended September 30, 2004;
Quarterly Revenue Increases 37%; Quarterly Net Income Increases 88% Year Over
Year
NOVATO, Calif.--(BUSINESS WIRE)--Nov. 8, 2004--Sonic Solutions
(Nasdaq:SNIC) announced today the financial results for the Company's
second quarter ended September 30, 2004.
Net revenue for the quarter was $17,437,000 compared to
$12,695,000 for the same period in the prior fiscal year. Net income
for the quarter was $3,575,000 or $0.14 per diluted share compared to
net income of $1,898,000 or $0.08 per diluted share for the same
period in the prior fiscal year.
Net revenue for the six months was $35,346,000 compared to
$24,717,000 for the same period in the prior fiscal year. Net income
for the six months was $7,562,000 or $0.29 per diluted share compared
to net income of $3,540,000 or $0.16 per diluted share for the same
period in the prior fiscal year.
Sonic will hold its second quarter ended September 30, 2004
earnings conference call on Monday, November 8, 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 Ended Six Months Ended
September 30, September 30,
2004 2003 2004 2003
------- ------- ------- -------
Net Revenue $17,437 $12,695 $35,346 $24,717
Cost of Revenue 1,639 1,653 3,500 3,401
------- ------- ------- -------
Gross Profit 15,798 11,042 31,846 21,316
------- ------- ------- -------
Operating expenses
Marketing and sales 3,686 2,890 7,598 5,982
Research and development 7,107 4,840 13,655 9,021
General and administrative 1,387 1,051 2,587 2,029
------- ------- ------- -------
Total operating expenses 12,180 8,781 23,840 17,032
------- ------- ------- -------
Operating income 3,618 2,261 8,006 4,284
Other income, net 171 51 231 1
------- ------- ------- -------
Income before income taxes 3,789 2,312 8,237 4,285
Provision for income taxes 214 414 675 745
------- ------- ------- -------
Net income $ 3,575 1,898 7,562 3,540
======= ======= ======= =======
Net income per share
applicable to common
Shareholders:
Basic $ 0.15 $ 0.09 $ 0.33 $ 0.18
======= ======= ======= =======
Diluted $ 0.14 $ 0.08 $ 0.29 $ 0.16
======= ======= ======= =======
Shares used in computing
net income per share:
Basic 23,422 20,118 22,733 19,276
======= ======= ======= =======
Diluted 26,400 23,462 25,711 22,620
======= ======= ======= =======
Sonic Solutions
Condensed Balance Sheets
(in thousands)
September 30, March 31,
2004 2004 (a)
------------- ---------
(unaudited)
Assets
Current assets:
Cash, cash equivalents and investments $ 66,239 $ 36,182
Accounts receivable, net of allowance for
returns and doubtful accounts of
$243 and $343, at March 31, 2004 and
September 30, 2004, respectively 9,471 9,443
Inventory 734 560
Prepaid expenses and other current assets 2,276 1,399
-------- --------
Total current assets 78,720 47,584
-------- --------
Fixed assets, net 4,329 3,610
Purchased and internally developed
software costs, net 1,405 1,042
Acquired intangibles 2,491 2,898
Goodwill 15,533 15,533
Other assets 511 278
-------- --------
Total assets $102,989 $ 70,945
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,845 $ 1,145
Accrued liabilities 8,112 8,977
Deferred revenue and deposits 4,701 4,965
Capital leases 66 60
-------- --------
Total current liabilities 14,724 15,147
-------- --------
Capital lease, net of current portion 38 75
-------- --------
Total liabilities 14,762 15,222
Shareholders' equity:
Common stock 95,942 70,994
Cumulative foreign translation adjustment (22) (16)
Accumulated deficit (7,693) (15,255)
-------- --------
Total shareholders' equity 88,227 55,723
-------- --------
Total liabilities and shareholders' equity $102,989 $ 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 - News)
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, DVDit,
InterActual, MyDVD, and RecordNow 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 or Rob Walker, 415-445-3234
carolyn@marketstreetpartners.com email
rwalker@marketstreetpartners.com email