EXHIBIT 99.1
Sonic Solutions Receives Notice from Nasdaq Due to Inability to
Timely File Form 10-Q
NOVATO, Calif.--(BUSINESS WIRE)--Feb. 16, 2007--Sonic Solutions(R)
(NASDAQ:SNIC) today announced that it will appeal and request a
hearing before a Nasdaq Listing Qualifications Panel (Panel) in
response to its receipt on February 13, 2007 of a Nasdaq Staff
Determination from The Nasdaq Stock Market stating that Sonic's common
stock is subject to delisting from The Nasdaq Global Select Market.
The notice, which Sonic expected, was issued as a result of Sonic's
inability to timely file its Quarterly Report on Form 10-Q for the
quarter ended December 31, 2006. Timely filing of periodic reports
with the Securities and Exchange Commission is a requirement for
continued listing under Nasdaq Marketplace Rule 4310(c)(14). There can
be no assurance that the Panel will grant Sonic's request for
continued listing.
As previously announced on February 1, 2007, Sonic has commenced a
voluntary review of its historical and current stock option grant
practices and related accounting. Based on the review, the audit
committee and Sonic management have preliminarily concluded that,
under applicable accounting guidance, Sonic lacks sufficient
documentation for certain historical option grants and that the
measurement dates associated with these option grants will need to be
adjusted. Further, as previously announced, the audit committee, after
consultation with management and the Company's board of directors, has
determined that the Company's annual and interim financial statements
may no longer be relied upon.
Sonic believes it will have to record additional non-cash charges
for stock-based compensation expense and restate previous financial
statements, and that such charges will be material. Sonic is not yet
able to determine the amount of such charges or the resulting tax and
accounting impact of these actions. Sonic intends to file its restated
financial results and related periodic reports as quickly as possible.
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(R)-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 as well
as online at Sonic.com and Roxio.com, and are bundled with 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 is
headquartered in Marin County, California.
Sonic, the Sonic logo, Sonic Solutions, and Roxio are trademarks
or registered trademarks of Sonic Solutions in the U.S. and/or other
countries. All other company or product names are trademarks or
registered trademarks of their respective owners and, in some cases,
are used by Sonic under license.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995:
All statements included or incorporated by reference in this
release, other than statements or characterizations of historical
fact, are forward-looking statements. These forward-looking statements
are based on our current expectations, estimates and projections about
our business and industry, management's beliefs, and certain
assumptions made by us, all of which are subject to change.
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "intends," "plans," "predicts," "believes,"
"seeks," "estimates," "may," "will," "should," "would," "could,"
"potential," "continue," "ongoing," similar expressions, and
variations or negatives of these words. These forward-looking
statements are not guarantees of future results and are subject to
risks, uncertainties and assumptions that could cause our actual
results to differ materially and adversely from those expressed in any
forward-looking statement.
These risks and uncertainties include, but are not limited to, our
ability to persuade the Nasdaq Listing Qualifications Panel to grant
our request for continued listing on The Nasdaq Stock Market; the
scope of the equity awards for which accounting measurement dates will
change; the amount and timing of stock-based compensation and other
additional expenses to be recorded, and the corresponding restatement
of our financial statements; other accounting adjustments that may
result from review of our financial statements for the periods in
question; other ramifications of our inability to file required
reports with the SEC on a timely basis; potential claims and
proceedings relating to such matters, including shareholder litigation
and action by the SEC or other governmental agencies; other actions
taken or required as a result of the review; and negative tax or other
implications for the company resulting from the accounting adjustments
and other factors.
Our Annual Report on Form 10-K, subsequent Quarterly Reports on
Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings
discuss important risk factors that could contribute to such
differences or otherwise affect our business, results of operations
and financial condition. The forward-looking statements in this
release speak only as of the date they are made. We undertake no
obligation to revise or update publicly any forward-looking statement
for any reason.
CONTACT: Sonic Solutions
A. Clay Leighton, 415-893-8000
Chief Financial Officer
Fax: 415-893-8008
clay_leighton@sonic.com
or
StreetSmart Investor Relations
Brooke Deterline, 415-893-7824
Anne Leschin, 415-775-1788
investinsonic@sonic.com