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