Exhibit 99.1
Sonic Solutions Updates Financial Guidance
NOVATO, Calif.--(BUSINESS WIRE)--Nov. 8, 2005--Sonic Solutions
(Nasdaq:SNIC) management in a conference call today updated financial guidance
for the remaining two quarters in fiscal year 2006 and provided an initial
forecast for fiscal year 2007.
For its third fiscal quarter ending December 31, 2005, the Company
anticipates revenues to be in the range of $37 million to $40 million, and fully
diluted earnings to be between $0.25 and $0.30 per share. For its fourth fiscal
quarter ending March 31, 2006, the Company anticipates revenues to be in the
range of $38 million to $42 million, and fully diluted earnings to be between
$0.28 and $0.38 per share.
For fiscal year 2007, Sonic forecasts that revenue will be between $175
million and $190 million and that operating income will be between $42 and $55
million, or an increase over fiscal 2006 of approximately 100% (Sonic has not
yet selected its method for stock option valuation under SFAS No. 123R,
Share-Based Payment; for purposes of this projection the Company has included an
expense of approximately $8 million for stock option compensation based upon the
stock option compensation expense of approximately $7.7 million in fiscal year
2005 set forth in Footnote 1 of its most recent Annual Report on Form 10-K).
All guidance numbers are based upon U.S. generally accepted accounting
principles.
About Sonic Solutions
Sonic Solutions (Nasdaq: SNIC; http://www.sonic.com) is the leader in
digital media software, providing a broad range of interoperable, platform
independent software tools and applications for creative professionals, business
and home users, and technology partners. Sonic's products range from advanced
DVD authoring systems and interactive content delivery technologies used to
produce the majority of Hollywood DVD film releases, to the award-winning Roxio-
and Sonic-branded CD and DVD creation, playback and backup solutions that have
become the premier choice for consumers, prosumers and business users worldwide.
Sonic products are globally available from major retailers, online at
Sonic.com and Roxio.com, and are bundled with personal computers ("PCs"),
after-market drives and consumer electronic devices. Sonic's digital media
creation engine is the de facto standard and has been licensed by major software
and hardware manufacturers, including Adobe, Microsoft, Scientific-Atlanta,
Sony, and many others. Sonic Solutions is headquartered in Marin County,
California.
Sonic, the Sonic logo, Sonic Solutions, and Roxio are trademarks or
registered trademarks of Sonic Solutions in the United States 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.
Forward-Looking Statements
This press release and Sonic's second quarter ended September 30, 2005
earnings conference call contain forward-looking statements that are based upon
current expectations. Such forward-looking statements include revenue and
earnings per share guidance for the fiscal quarters ending December 31, 2005,
March 31, 2006, the fiscal year ending March 31, 2006 and the fiscal year ending
March 31, 2007; the gross margin, operating margin, effective tax rate and cost
of compliance with the Sarbanes-Oxley Act of 2002, as amended ("SOX"), assumed
for the guidance; the continuing effects of the increase in operating expenses
and headcount in connection with the Roxio acquisition; and favorable
expectations about Sonic's consumer electronics strategy and ability to take
advantage of the convergence of the PC and consumer electronics industries.
These forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results 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, Sonic's ability to successfully integrate
Roxio's Consumer Software Division and former employees into Sonic's business
and realize the anticipated synergies and cost savings from the acquisition;
general customer and market reaction to the Roxio acquisition; the timely
introduction and acceptance of new products, including but not limited to
Sonic's high definition series products; the costs associated with new product
introductions and the possible adverse effect on gross margin; the transition of
products to new hardware configurations and platforms; unforeseen increases in
operating expenses as a result of the Roxio acquisition, new product
introductions, cost of SOX compliance or business expansion; loss of significant
customers due to the Roxio acquisition and other market conditions; risks
related to acquisitions and international operations; and other factors,
including those discussed in Sonic's annual and quarterly reports on file with
the Securities and Exchange Commission. This press release should be read in
conjunction with Sonic's most recent quarterly report on Form 10-Q and Sonic's
other reports on file with the Securities and Exchange Commission, which contain
a more detailed discussion of Sonic's business including risks and uncertainties
that may affect future results. Sonic does not undertake to update any
forward-looking statements.
CONTACT: Sonic Solutions
A. Clay Leighton, 415-893-8000
Fax: 415-893-8008
clay_leighton@sonic.com
or
Market Street Partners
Carolyn Bass, 415-445-3232
Susan Coss, 415-445-3237
investinsonic@sonic.com