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Sonic Solutions Reports Record Results for Fourth Quarter and Fiscal Year Ended March 31, 2004
10th Consecutive Quarter of Increasing Revenues Drives All-Time Record Profits
Novato, California (May 4, 2004) - Sonic Solutions (NASDAQ: SNIC) announced today the financial results for the Company’s fourth quarter and fiscal year ended March 31, 2004.
Net revenue for the quarter was $17,302,000 compared to $9,467,000 for the same period in the prior fiscal year. Net income for the quarter was $4,336,000 or $0.17 per diluted share compared to net income of $145,000 or $0.01 per diluted share for the same period in the prior fiscal year.
Net revenue for the fiscal year ended March 31, 2004 was $56,853,000 compared to $32,718,000 for the prior fiscal year. Net income for the fiscal year was $11,084,000 or $0.46 per diluted share compared to net income of $2,537,000 or $0.13 per diluted share for the prior fiscal year.
Sonic will hold its fourth quarter and fiscal year ended March 31, 2004 earnings conference call on Tuesday, May 4, 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/webcast.
Sonic Solutions
Condensed Statement of Operations
(in thousands, except per share amounts)
|
Three Months Ended
March 31,
(unaudited) |
Nine Months Ended
March 31,
(audited) |
|
2004 |
2003 |
2004 |
2003 |
|
|
|
|
|
Net Revenue |
$17,302 |
$9,467 |
$56,853 |
$32,718 |
|
|
|
|
|
Cost of Revenue |
1,917 |
1,974 |
7,052 |
7,446 |
|
|
|
|
|
 Gross Profit
|
15,385 |
7,493 |
49,801 |
25,272 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Marketing and sales |
3,343 |
2,548 |
12,629 |
8,762 |
Research and development |
5,724 |
3,825 |
19,731 |
10,625 |
General and administrative |
1,466 |
792 |
4,669 |
3,101 |
Total operating expenses |
10,533 |
7,165 |
37,029 |
22,488 |
Operating income |
4,852 |
328 |
12,772 |
2,784 |
|
|
|
|
|
Other income (expense), net |
136 |
(70) |
238 |
(47) |
|
|
|
|
|
Income before income taxes |
4,988 |
258 |
13,010 |
2,737 |
Provision for income taxes |
652 |
113 |
1,926 |
200 |
|
|
|
|
|
Net income |
$4,336 |
145 |
11,048 |
2,537 |
Net income per share applicable to common
Shareholders:
|
|
|
|
|
Basic |
$0.20 |
$0.01 |
$0.54 |
$0.15 |
Diluted |
$0.17 |
$0.01 |
$0.46 |
$0.13 |
|
|
|
|
|
Shares used in computing net income per share: |
|
|
|
|
Basic |
21,766 |
17,564 |
20,459 |
16,391 |
Diluted |
25,197 |
20,807 |
23,889 |
19,311 |
Sonic Solutions
Condensed Balance Sheets
(in thousands)
(audited)
|
March 31,
2004 |
March 31,
2003 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash, cash equivalents and investments |
$36,182 |
|
$9,708 |
|
Accounts receivable, net of allowance for returns and doubtful accounts of
$243 and $425, at March 31, 2004 and March 31, 2003, respectively |
9,443
|
|
5,823
|
|
Inventory |
560 |
|
531 |
|
Prepaid expenses and other current assets |
1,400 |
|
869 |
|
Total current assets |
47,585 |
|
16,931 |
|
|
|
|
|
|
Fixed assets, net |
3,610 |
|
1,745 |
|
Purchased and internally developed software costs, net |
1,042 |
|
920 |
|
Acquired intangibles |
2,898 |
|
1,345 |
|
Goodwill |
15,553 |
|
6,715 |
|
Other assets |
277 |
|
697 |
|
Total assets |
$70,945 |
|
$28,353 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued liabilities |
$10,122 |
|
$7,087 |
|
Deferred revenue and deposits |
4,965 |
|
1,840 |
|
| Capital Leases |
60 |
|
0 |
|
Total current liabilities
|
15,147 |
|
8,927 |
|
| |
|
|
|
|
| Capital lease, net of current portion |
75 |
|
0 |
|
| Total liabilities |
15,222 |
|
8,927 |
|
Shareholders' equity:
|
|
|
|
|
Common stock |
70,994 |
|
45,765 |
|
Preferred stock |
(16) |
|
0 |
|
Accumulated deficit |
(15,255) |
|
(26,339) |
|
Total shareholders' equity |
55,723 |
|
19,426 |
|
Total liabilities and shareholders' equity |
$70,945 |
|
$28,353 |
|
About Sonic Solutions (NASDAQ: SNIC)
Based in Marin County, California, Sonic Solutions (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® and DVDit!® 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!™ is a leading solution for audio and data mastering. Sonic's AuthorScript®, 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, Backup MyPC, CinePlayer, PrePlay, DVD Producer, Edit-on-DVD, HyperMux DL, NoNOISE, Sonic PrimeTime, RecordNow!, Simple Backup, Sonic JumpSafe and Sonic SmartBalance are trademarks of Sonic Solutions. AuthorScript, AutoDVD, DVDit!, DVD Fusion, MyDVD, OpenDVD, PrePlay, ReelDVD, Scenarist, Sonic DVD Creator and Sonic Solutions are registered trademarks of Sonic Solutions. 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.
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