Sonic Solutions Posts Loss17 Feb, 2009 By: Chris Tribbey
With revenue drops across all its business lines, digital media company Sonic Solutions reported a net loss of $111 million for its third fiscal quarter (ended Dec. 31). Revenue for the quarter was down more than 25%, compared to the same period in 2007.
“The primary cause of our disappointing results was the downturn that affected the world economy,” said Sonic President and CEO Dave Habiger, in a Feb. 5 conference call with investors, pointing to the hard-hit PC, semiconductor and software sales. Since October, Sonic has had two rounds of layoffs, eliminating 175 positions.
“With operating expenses significantly reduced, we expect that Sonic will generate a reasonable level of profit over the next year,” Habiger said.
He added that the holiday Blu-ray Disc sales bode well for Sonic’s consumer and professional software products. As for CinemaNow, which Sonic acquired in November for $3 million, Habiger said the movie service will help in consumer adoption of Qflix, the download-to-burn DVD technology Sonic is bundling with Dell and Pioneer disc drives.
“More significantly, the arrival of CinemaNow has accelerated our long-held plans to become more involved in premium content delivery and served as a catalyst for a general reorganization of our company,” he said.