1234 plus the null termination is 5 chars.
edit:
The C99 spec explains it.
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int snprintf(char * restrict s, size_t n, const char * restrict format, ...);
Description
2 The snprintf function is equivalent to fprintf, except that the output is written into an array (specified by argument s) rather than to a stream. If n is zero, nothing is written, and s may be a null pointer. Otherwise, output characters beyond the n-1st are discarded rather than being written to the array, and a null character is written at the end of the characters actually written into the array. If copying takes place between objects that overlap, the behavior is undefined.
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John