-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PRUumTCJ1sicsvhapw6GNqi9WeZlUp75oP7YJFUlE32MUb1hXAQ4H89tRLXLcSTu /67PlEXx3AdndS2I5KavWw== 0001157523-04-010453.txt : 20041108 0001157523-04-010453.hdr.sgml : 20041108 20041108160541 ACCESSION NUMBER: 0001157523-04-010453 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041108 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041108 DATE AS OF CHANGE: 20041108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SONIC SOLUTIONS/CA/ CENTRAL INDEX KEY: 0000916235 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 930925818 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23190 FILM NUMBER: 041125888 BUSINESS ADDRESS: STREET 1: 101 ROWLAND WAY STREET 2: STE 110 CITY: NOVATO STATE: CA ZIP: 94945 BUSINESS PHONE: 4158938000 MAIL ADDRESS: STREET 1: 101 ROWLAND WAY STREET 2: STE 110 CITY: NOVATO STATE: CA ZIP: 94945 8-K 1 a4761006.txt SONIC SOLUTIONS 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 8, 2004 SONIC SOLUTIONS (Exact name of registrant as specified in its charter) California 72870 93-0925818 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer organization) Identification No.) 101 Rowland Way, Suite 110 Novato, CA 94945 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (415) 893-8000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 8, 2004, Sonic Solutions issued a press release announcing the results of its second quarter ended September 30, 2004. A copy of the press release, dated November 8, 2004, is attached hereto as Exhibit 99.1. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. c. Exhibits The following exhibit is furnished with this Current Report on Form 8-K: Exhibit Description ------- ----------------------------------------------- 99.1 Press Release of Sonic Solutions dated November 8, 2004 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SONIC SOLUTIONS By: /s/ Robert J. Doris -------------------- Name: Robert J. Doris Title: President and Director (Principal Executive Officer) Date: November 8, 2004 3 EX-99.1 2 a4761006ex99.txt EXHIBIT 99.1 PRESS RELEASE 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 -----END PRIVACY-ENHANCED MESSAGE-----