uesday November 4 4:07 PM EST
Company Press Release
Sonic Solutions Reports Second Quarter Results
for Quarter Ended September 30, 1997
NOVATO, Calif.--(BUSINESS WIRE)--Nov. 4, 1997--Sonic Solutions
(NASDAQ:SNIC) today announced that net revenue was $4,714,000 for the
second quarter ended September 30, 1997, compared to $4,645,000 in the same
period in the prior fiscal year.
Net loss for the quarter totaled $1,453,000, or $0.19 per share compared to a net
loss of $674,000 or $0.09 per share recorded in the second quarter of last year.
Net revenue was $10,638,000 for the six months ended September 30, 1997,
compared to $7,103,000 in the same period in the prior fiscal year. Net loss for the
six month period totaled $1,858,000 or $0.24 per share, compared to the net loss
of $3,023,000 or $0.40 per share in the same six month period of last year.
Sonic Solutions designs and manufacturers tools to assist audio and other multimedia
professionals in preparing music, video, film graphics and other entertainment
software. The SonicStudio, the Company's professional digital audio workstation, is
used around the world by audio professionals to prepare recorded sound for release
on Digital Audio Compact Disc, for inclusion in film and video soundtracks, and for
broadcast on radio and television. The Company's Sonic MediaNet product is a high
speed local area network optimized for management of data intensive file transfers
typically required in digital video, digital audio, computer graphics and desktop
publishing. Sonic's DVD Creator product line assists major studios, post production
facilities and compact disc plants in releasing video and audio content in the new
DVD format.
The above paragraphs of this press release contain forward looking statements that
are based upon current expectations. Actual results could differ materially from those
projected in the forward looking statements as a result of various risks and
uncertainties including, among others, the timely introduction and acceptance of new
products, costs associated with new product introductions, the transition of products
to new hardware configurations and platforms and other factors, including those
discussed in the Company's annual and quarterly reports on file with the Securities
and Exchange Commission. This press release should be read in conjunction with the
Company's most recent annual report on Form 10-K on file with the Securities and
Exchange Commission, which contain a more detailed discussion of the Company's
business including risks and uncertainties that may affect future results.
Sonic Solutions
Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
(unaudited) (unaudited)
Net revenue $ 4,714 $4,645 $ 10,638 $ 7,103
Cost of revenue 2,286 1,869 4,671 3,535
Gross profit 2,428 2,776 5,967 3,568
Operating expenses:
Marketing and sales 1,920 1,300 3,872 2,876
Research and
development 1,469 1,651 2,967 2,708
General and
administrative 373 503 746 1,036
Total operating
expenses 3,762 3,454 7,585 6,620
Operating loss (1,334) (678) (1,618) (3,052)
Other income (expense) (119) 4 (240) 29
Loss before income
taxes (1,453) (674) (1,858) (3,023)
Provision for income
taxes 0 0 0 0
Net loss ($1,453) ($674) ($1,858) ($3,023)
Net loss per share ($0.19) ($0.09) ($0.24) ($0.40)
Shares used in
computing per
share amounts 7,614 7,524 7,605 7,514
SONIC SOLUTIONS
CONDENSED BALANCE SHEETS
(in thousands)
Sept. 30, March 31,
1997 1997
--------- ---------
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and investments $ 2,791 $ 4,806
Accounts receivable, net of allowance
for returns and doubtful accounts of
$629 and $588, at Sept. 30, 1997 and
March 31, 1997, respectively 3,631 3,105
Inventory 1,989 1,275
Prepaid expenses and other current assets 1,234 1,169
Total current assets 9,645 10,355
Fixed assets, net 3,202 3,154
Purchased and internally developed
software costs, net 2,734 1,954
Other assets 377 426
Total assets $15,958 $15,889
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 4,681 $ 2,971
Deferred revenue and deposits 808 705
Subordinated debt, current portion 3,049 347
Current portion of obligations under
capital leases 103 69
Total current liabilities 8,641 4,092
Subordinated debt, net of current portion 485 3,195
Obligations under capital leases, net of
current portion 211 172
Shareholders' equity:
Common stock 13,340 13,291
Warrants 3 3
Paid in capital -- warrants 546 546
Accumulated deficit (7,268) (5,410)
Total shareholders' equity 6,621 8,430
Total liabilities and shareholders' equity $15,958 $15,889
Note to Editors: Sonic Solutions (SNIC) is publicly traded on NASDAQ.
Trademarks and registered trademarks are the property of their respective owners.
Contact:
Sonic Solutions
A. Clay Leighton, 415/893-8000 (CFO) |
