Sonic Solutions FY12 Dependent on RoxioNow (SNIC)

Piper Jaffray published its research report today on Sonic Solutions (NASDAQ: SNIC) noting RoxioNow's potential impact on SNIC's FY12 results.

In its report to clients, Piper Jaffray states, "Sonic's FY12 results have the potential to vary widely, largely depending on the number of movies rented/purchased through RoxioNow. Our FY12 estimates assume $50.9m in revenue from RoxioNow storefronts, based on 24m movies purchased (10%) or rented (90%). For sensitivity, if device penetration and attach rates are higher than expected, and RoxioNow storefronts see volumes of 40m movies in FY12, instead of the 24m in our model, it would add $34m to revenue and at least $0.15 to PF EPS vs. our FY12 estimates."

Piper Jaffray has a Neutral rating and a $12 price target on SNIC.

SNIC closed yesterday at $10.70.