BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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47

Sonic Solutions (SNIC)

Simply put, Sonic Solutions helps put the DVD into digital media. That's important, since millions of consumers who now capture their Kodak moments and home movies in bits rather than on film still want to store their creations in a form that will survive long after their PC has crashed. The company, founded in 1986 and publicly traded since 1994, also sells far pricier software to movie makers, from the indie film crowd to big Hollywood studios. They all need tools to get the best high-definition clarity and to add interactivity in the years to come, such as the ability for a studio to lead viewers to a trailer for a sequel or other updated material. Sales hit $90.6 million in fiscal 2005, which ended Mar. 31, almost three times as high as 2003's revenue. One risk to future growth, however, is the impending "VHS vs. Betamax" style standards war between two competing high-def formats, Blu-Ray and HD-DVD.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

440.0

Sales*
($ Millions)

143.8

Sales Growth
(3-yr. avg. annual)

63.4 %

Profits*
($ Millions)

18.6

Profit Growth
(3-yr. avg. annual)

77.1 %

Return on Inv. Capital (3-yr.)

13.0 %

Share Price
12-Mo. Hi/Lo

22/14

Share Price
As of 4/28/06

18

Return on Equity

15.7 %

P/E Ratio

26

No. of Employees

602

Industry Application Software
CURRENT
MARKET INFO

SNIC >

COMPANY WEB SITE >
Location Novato, Calif.
Phone 415 893-8000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Sonic Solutions supplies DVD creation software for professional, industrial, and consumer applications. It develops and markets computer-based tools for creating digital audio and video titles in the CD-audio and DVD-video formats; for recording data files on CD recordable or DVD recordable disks in the CD-ROM and DVD-ROM formats; and for backing up the information contained on hard disks attached to computers. The company offers its products in three categories: professional audio and video products, desktop products, and technology products. The professional products consist of DVD-video creation tools that are used by professional customers to prepare DVD-video titles for mass replication and release to home video consumers. The desktop products include software-only DVD-video creation tools and DVD-video playback software for use by professionals, enthusiasts, and consumers. The technology products comprise software, which the company licenses to other companies for inclusion in their DVD or CD creation and recording products. The company sells its products worldwide through direct sales force, audio/video dealers, Web stores, and computer and electronics retail stores. Sonic Solutions was founded in 1986 by Robert J. Doris and Mary C. Sauer. The company has its headquarters in Novato, Calif.


Data provided by Capital IQ
 
David C. Habiger

David C. Habiger, 36

Chief Executive Officer and President


Total Compensation*

$ 217,915

Total Options Value*

$ 1,210,413

* Fiscal Year 2005

DEGREES HELD
University of Chicago - MBA St. Norbert College - B.B.A, University of Chicago - MBA


Executive Bio

David Habiger has been a president and chief operating officer of Sonic Solutions since April, 2005. Habiger joined Sonic in 1993 and has been instrumental in the company's growth. For the past three years he has been general manager of its largest division, the Desktop Products Group (now the Roxio Div.), where he played a key role in the development of Sonic's original equipment manufacturing and retail markets for consumer software. He has been responsible for the integration of acquisitions, including the Digital Media Div. of Veritas and the Roxio consumer software group of Sonic. Prior to joining Sonic, Habiger was a product manager at the Roscor, a leading provider of professional video, audio, multimedia, and computer-based products and services. He was also a founder of Providence Productions, a media production company. Habiger holds an MBA from the University of Chicago and a BBA from St. Norbert College in DePere, Wis.


Management Team

Key Executives

David C. Habiger; Robert J. Doris; A. Clay Leighton; Mark Ely

Board Directors

R. Warren Langley; Robert J. Doris; Mary C. Sauer; Robert M. Greber; Peter J. Marguglio


Executive Data provided by Capital IQ