Roxio Announces Preliminary First Quarter Results
Santa Clara, California - (June 25, 2002) - Roxio, Inc. (Nasdaq: ROXI), The Digital Media Company®, provider of the best selling digital media software in the world, today announced that due to softness in consumer demand for PC and software products, the Company expects revenues for the first quarter to be approximately $31 million and pro forma net income to be approximately $0.02 per share. This compares to previously issued guidance of $35 million in revenues and pro forma net income of $0.15 per share. Pro forma net income excludes non-cash charges related to the amortization of intangible assets and deferred stock-based compensation. On a reported basis, the loss per fully diluted share is estimated to be approximately $0.15.
Chris Gorog, Roxio's President and Chief Executive Officer stated, "Our revenues in the first quarter, similar to others in our industry, are being impacted by greater than expected softness in revenues from OEMs worldwide and weakness in retail software sales, particularly in Europe. Industry indicators now suggest that the
consumer and PC software sectors will be less robust in the near-term
than previously anticipated. Roxio will release several major products
throughout the balance of this fiscal year including our flagship
Easy CD Creator, as well as new versions of top-selling software
PhotoSuite, VideoWave and Toast, and we remain confident that these
releases will drive sequential revenue growth in the second half
of our fiscal year."
Conference Call Information
Roxio will host a conference call today for investors and analysts
at 2:00 p.m. PT (5:00 p.m. ET). Participants should dial 800-695-8675
at least ten minutes prior to start time. A telephonic replay of
the call will also be available for 48 hours by dialing 800-642-1687
(706-645-9291 internationally) and entering passcode 4698471. Roxio
will also offer a live webcast of the call, accessible from the
"Investor Relations" section of the company's Web site
Safe Harbor Statement
The matters discussed relating to Roxio in this press release,
in particular matters related to Roxio's OEM relationships, include
forward-looking statements that are subject to certain risks and
uncertainties, including delays in product development, competition
in the software industry, and failure to maintain OEM relationships,
that could cause actual results to differ materially from those
projected. Additional information on these and other factors are
contained in Roxio's reports filed with the Securities and Exchange
Commission (SEC), including the Company's Annual Report on Form
10-K as filed with the SEC on July 1, 2002 and Quarterly Report
on Form 10-Q as filed with the SEC on November 13, 2002, copies
of which are available at the website maintained by the SEC at http://www.sec.gov.
Roxio assumes no obligation to update the forward-looking statements
included in this press release.
Roxio, a division of Sonic Solutions, develops and markets the best-selling digital media software in the world. Roxio offers
award-winning software products for CD/DVD burning, photo editing and video editing and has an installed base of over 150 million
users. Roxio distributes its products globally through strategic partnerships with major hardware manufacturers, through leading
retailers, through Internet partnerships and through direct sales at www.roxio.com. Roxio's
parent company, Sonic Solutions (NASDAQ: SNIC;
http://www.sonic.com) is the leader in digital media software and provides a broad range of software
tools and applications for creative professionals, business and home users and technology partners. Sonic's products range from professional
DVD authoring systems and interactive content delivery technologies that are used to produce the majority of Hollywood movies released on DVD,
to the award-winning Roxio- and Sonic-branded CD and DVD creation, playback and backup applications that have become the premiere solutions
for consumers and business users worldwide. Sonic's AuthorScript® is the de facto standard for CD and DVD burning and formatting and has
been licensed by major software and hardware manufacturers, including Adobe, Broadcom, Microsoft, Scientific-Atlanta, Sony, and many others.
Sonic Solutions is headquartered in Marin County, California.
Sonic, the Sonic logo, Sonic Solutions, Roxio, MyDVD, CineMagic, Plug & Burn, LiveShare, Roxio Easy Media Creator, and
AuthorScript are trademarks or registered trademarks of Sonic Solutions or its subsidiaries in the United States and/or other
countries. Dolby is a trademark of Dolby Laboratories. All other company or product names are trademarks of their respective
owners and, in some cases, are used by Sonic Solutions under license. Specifications, pricing and delivery schedules are subject
to change without notice.