Sonic Solutions stock jumps after fiscal 1Q loss narrows, earnings beat Wall Street estimates

Sonic Solutions stock jumps after 1Q beat

NOVATO, Calif. — The stock of Sonic Solutions Inc., which makes DVD-burning software under the Roxio brand, was on fire Thursday after it reported results for its latest quarter.

Shares of the Novato-based company rose $1.28, or 16 percent, to $9.20 in afternoon trading.s

Late Wednesday, Sonic said it lost $1.1 million, or 3 cents per share, in its first fiscal quarter, which ended June 30. That compares with a net loss of $1.8 million, or 7 cents per share, in the same quarter a year ago.

Sonic said that excluding one-time items, it earned 2 cents per share. Analysts polled by Thomson Reuters were expecting it to break-even on that basis.

Revenue was $25.4 million, roughly flat with $25.5 million a year ago.

Sonic said it expects revenue for the current quarter of about $26 million, assuming the acquisition of DivX Inc. doesn’t close before the quarter’s end. Analysts have been expecting $26.4 million in revenue.

Sonic Solutions in June announced the deal to buy DivX for $323 million in cash and stock.