Roxio Raises Revenue Guidance For Both Napster And Software Divisions
Santa Clara, California - (March 15, 2004) - Roxio®, a division of Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, today announced that it is raising revenue guidance for the fiscal fourth quarter ending March 31, 2004 due to strong consumer demand for both its online music service and software products. Roxio now expects revenue for its Napster division to increase to approximately $5.5 million, which compares to $3.6 million in the fiscal third quarter. Revenue for its software division is expected to increase to approximately$26.0 million, as compared to $15.2 million in the immediately preceding quarter.
"Roxio's improving financial results reflect a very strong debut for Easy Media Creator 7, which has garnered outstandingreviews and is currently the top selling digital media softwarein the nation," said Chris Gorog, Chairman and CEO. "Napsterhas become the most popular PC-only online music service in the U.S., and given that the online music market is just beginningto develop, we expect to see continued sequential growth from this division as increasing numbers of consumers use Napster to exploreand purchase music online."
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.
Safe Harbor Statement
Except for historical information, the matters discussed in this press release, in particular matters related to Roxio's future revenue, net income (loss), and increases in users of the Napster service, are forward-looking statements that are subject to certain risks and uncertainties such as decreased demand for our products; failure of the digital music industry to grow; flaws inherent in our products or services; intense competition; failure to obtain content licenses in domestic and international markets; failure to maintain relationships with strategic partners and content providers; general economic conditions and third party claims, 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 Quarterly Report on Form 10-Q as filed with the SEC on February 17, 2004, 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 statementsincluded in this press release.
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.