130 employees in Novato

Sonic now employs more than 650 globally, with a 75-employee development facility in Shanghai, 40 employees in Tokyo, 90 in Toronto and operations in three European locations. The company's Novato headquarters has grown to 130 employees and continues to expand.

"One reason Sonic is so successful at making these timely jumps is its ties to Hollywood," said Mr. Kaufhold. "The studios need to have the tools in hand before the new players hit the market. Right now the timing is perfect for optical disc authoring tools, and it puts Sonic far out ahead of anyone else.

"Another reason for success is Sonic's modularity. The company has developed separate units for Blu-Ray and HD-DVD. That means it'll be equally successful with the studios, whom I predict will favor the less piracy-prone HD-DVD, and OEMs like Samsung, which developed Blu-Ray originally as a recording device."

According to JMP Securities Managing Director Amy Feng, analysts like the company's ability to leverage its relationships with Mitsubishi, Sony, Magnavox and Philips.

Meanwhile, Richard Doherty, research director for Envisioneering Group, said Sonic's products also are sought by individual artists.

"I saw the attention they received at the Digital Hollywood show last week, and at two recent shows in Europe. Sonic is giving a lot of very talented people the opportunity to bypass the large studios and realize their dreams," said Mr. Doherty.

For more information, visit www.sonic.com.