Headquartered in Novato, CA, Sonic Solutions (SNIC) develops computer software tools that enable the recording and storage of digital audio and video content in various CD, DVD and related formats. The company divides its business into three categories: professional audio and video products, desktop products, and licensing of software components for inclusion in more comprehensive software packages. The Roxio acquisition, which more than doubled the size of the company in terms of revenue, was closed on December 17, 2004.
Professional audio and video products consist of advanced DVD video creation tools for professional customers who want to prepare commercial quality DVD videos for mass distribution. The product set includes DVD Creator, DVD Fusion, Sonic Scenarist, DVD Producer and Reel DVD. Products are developed to run on either the Macintosh or Windows operating system platforms. Plug-and-play hardware is sometimes bundled with software, but only with professional products.
Desktop products consist of software-only creation and playback tools for CDs and DVDs, as well as data backup programs. These products are bundled with original equipment manufacturers (OEMs) computers and also distributed as standalone products through retail channels. Products are marketed under various brands that include RecordNow!, Backup My PC, CinePlayer, PrimeTime, DVDit and My DVD. Additionally, Sonic licenses technology products such as AuthorScript and Primo SDK to other software developers. All of the Roxio products have been folded into the Desktop products segment, and the division has been renamed the Roxio Division. The company has launched a rebranding campaign that substitutes the Roxio name on all of the Sonic desktop product titles. The desktop and licensing products are also referred to as consumer products (now designated Roxio). Management reports financial results in two segments: consumer and professional. The consumer segment contributed 91% of fiscal 2005 revenue, while the professional segment accounted for the remaining 9%.
Sales distribution is through an 8-person direct sales force, computer-based dealers, and more recently, computer OEMs. Bundling arrangements have been made with Dell, Fujitsu, HP, IBM, Iomega, NEC, Panasonic, Pioneer, Sharp and Sony. Dell was the only 10% customer in fiscal year 2005, generating 33% of total revenue from development and licensing agreements. Competitors of SNIC include Adobe, Apple, Digital Vision, Dolby Labs, Mitsubishi, Panasonic, Philips, Pinnacle, Sony, Toshiba and Ulead. Approximately 77% of SNIC's fiscal 2005 revenue was generated domestically, Europe generated 9%, Asia 13%, while other regions accounted for the balance.