Dolby announced that its revenue for the second quarter of its 2012 fiscal year was $260.3m, up 4% versus the same period a year ago, and up 12% versus the previous quarter. GAAP net income in the quarter was $88.1m, up 7% from last year.
Investors liked the news, and sent Dolby shares up more than 20% in afterhours trading.
Licensing revenue during the quarter was $225.3m, an increase of 5% versus the same period ago, and an increase of 13% versus the previous quarter. Product revenue in the quarter was $27.2m, up 3% versus both last year and last quarter. Services revenue in the quarter was $7.7m, down 15% versus last year and up 1% versus the previous quarter.
The overall gross margin for the quarter was 91%, up from 89% last year, and flat with last quarter.
Dolby Included in Windows 8
The company also announced that Microsoft will incorporate Dolby Digital Plus in all versions of its Windows 8 operating system for PCs and tablets for online and file-based content, and leading providers of cloud-encoding solutions, such as Microsoft’s Azure, Encoding.com, Zencoder™, Digital Rapids, Nativ, and LinkoTec will also adopt Dolby Digital Plus in their platforms.
As part of the deal, device vendors will generally be required to directly license and pay Dolby a base royalty rate for the right to use the Dolby technologies included in Windows 8 and installed on PCs and tablets for online and file-based content.
For fiscal 2012, Dolby says it is targeting revenue of $910m to $960m. It had previously targeted revenue of $910m to $970m for 2012. Full year 2011 revenue was $955.5m.
Press Release: Dolby Laboratories Reports Second Quarter Fiscal 2012 Results
Press Release: Microsoft Selects Dolby to Create Immersive Entertainment Experiences on Windows 8 Tablets and PCs
Previous Quarter: Dolby Laboratories Reports First Quarter Fiscal 2012 Results
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