General/Financial:
Q. Why did Roxio sell GoBack?
A. This transaction will enable us to bring an even greater
focus to our digital media software business and the development
of our new on-line music business with our Napster assets. The opportunity
to sell GoBack comes at a great time for Roxio as it provides an
opportunity to add to our cash balances and divest an asset that
is not core to our digital media strategy.
Q. Why did you sell GoBack to Symantec?
A. Symantec is currently one of GoBack's largest marketing partners
and as a leader in Internet security software, it is the logical
and best new home for GoBack and its customers.
Q. What are the terms of the deal?
A. Roxio sold GoBack to Symantec for approximately $13 million
in cash. Of the total purchase price, $2.75 million will be held
in escrow for a period of one-year. Roxio will include the impact
of this transaction, net of the associated tax liability, in its
fiscal Q1 results ending June 30, 2003.
Q. What percentage of Roxio's business did GoBack represent?
A. GoBack revenues accounted for approximately 4-5% of net revenues.
Q. How does this sale impact Roxio's enterprise business?
A. Roxio Enterprise Sales Organization will now focus on selling
our digital media products, namely Easy CD & DVD Creator, Toast,
VideoWave and PhotoSuite to the enterprise community. Industry analysts
suggest that as CD burners penetrate the corporate market there
will be increased demand for digital media software from a corporate
standpoint.
Q. How does this sale impact Roxio's revenue and earnings guidance?
A. Since the transaction occurred in April 2003, the transaction
will be accounted for in Q1 of fiscal 2004. Roxio will provide guidance
for its fiscal Q1 as part of its fiscal Q4 and fiscal 2003 conference
call in May.
End Users/Consumers:
Q. I have ordered a copy of GoBack - will I get my product?
A. Roxio will continue to fulfill orders for the retail version
of GoBack for the next 60 days.
Q. Whom do I contact regarding GoBack order fulfillment?
A. You should contact the same source that you have ordered
the product from and they should be able to confirm the status of
your order.
Q. How do I get technical support on the product?
A. Roxio will continue to provide GoBack technical support for
the next sixty days. After that time, Symantec will assume the responsibly
of supporting GoBack.
Q. How do I buy GoBack now?
A. GoBack is available most places that software is sold, or you
can buy the product via an electronic download from Roxio.com or
by calling Roxio's direct sales team at 866-280-7694. After sixty
days, you can buy the product from Symantec.
Reseller/Retailer:
Q. I'm selling GoBack currently, whom do I contact for transaction-related
questions, volumes and pricing information?
A. You should contact your distributor to obtain pricing and
availability information.
Distributors:
Q. What is the process for ordering product and stock rotations?
A. There is no immediate change to the processes. Distributors
should continue to place orders and work with their Roxio sales
representative. A detailed transition plan will be provided with
adequate lead times as soon as final.
Q. To whom do I pay open invoices and resolve any billing issues?
A. You should continue to make payments and communicate issues
to the entity that billed you (Roxio). We will update distributors
at the right time as the plan is updated.