Dolby Reports Increase Revenue and Profit in Q1, But Cuts Guidance Due to Slowdown in PC Market

Posted by Joe Zaller
Feb 03 2011

Dolby Labs reported that revenue for the first quarter or its fiscal year was $242.7m, an increase of 10% versus the same period a year ago, and an increase of 6% versus the previous quarter.

Net income in the quarter was $86.4m, an 25% increase compared to the first quarter of last year, and an increase of 33% versus the previous quarter.   The company said that its net income figure for the quarter was helped by various discrete tax items, primarily a one-time tax benefit resulting from the release of a deferred tax liability of $11m related to the amortization of an intangible from a prior acquisition.

Licensing revenue during the quarter was $188.2m, a 14% increase versus the first quarter of last year, and a 5% increase versus the previous quarter.  Product revenue in the quarter was $46m, down slightly from $47.7m a year ago, but up 14% versus the previous quarter.  The overall gross margin for the quarter was 88%. 


2011 Forecast Lowered

Dolby revised its guidance for the year saying it is now targeting fiscal 2011 revenue in the range of $930m to $970m.  Last quarter the company said it expected fiscal 2011 revenue to be in the range of $950m to $990m with total gross margin of approximately 88 percent on a GAAP basis. Company president and CEO Kevin Yeaman attributed the lowered forecast to a slowdown in the PC market.



You can read the full Dolby Q1 earnings release here.

A write-up of Dolby’s results from the previous quarter is here.


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