DTS Posts Loss in Q2 2012 Due to Weak Consumer Demand for Blu-Ray

Posted by Joe Zaller
Aug 06 2012

Audio processing specialist DTS announced that its revenue for the second quarter of 2012 was $21.8m, an increase of 6% versus the same period a year ago, and down 19% versus the previous quarter

The GAAP loss for the quarter was $755,000 or $0.05 per share, versus a profit of $2.6m, or $0.14 per share during the same period last year.  The company attributed the loss in the quarter to weaker consumer spending on Blu-Ray players, combined with higher expenses.

The results were below the expectations of equity analysts, who on average were expecting revenue of $21.7m and earnings of $0.18 per share.

Non–GAAP net income in the quarter was $3.5m, $4.2 million last year and $6.2m last quarter.

Gross profit for the first quarter of 2012 was $21.56m, or 99% of revenue, compared to $20.37m,, or 99% of revenue last year, and 26.7m, or 99% of revenue last quarter.

“Our growth in the second quarter was impacted by weakness in consumer electronics spending with regard to Blu-ray,” said Jon Kirchner, chairman and CEO of DTS, Inc. “However, our strategy is squarely focused on the network-connected markets, in which we posted year over year growth of 81%. These markets were the largest contributors to our revenues this quarter, and we expect them to represent the majority of our business going forward. As we complete the integration of SRS Labs, including combining product and technology roadmaps, DTS is in an even better position to continue to seize the market opportunities presented by cloud-based entertainment and the proliferation of connected devices.  We expect to realize annual synergies of at least $8 million beginning in 2013.”

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Related Content:

Press Release: DTS Reports Second Quarter 2012 Results  

Previous Quarter: DTS Reports First Quarter 2012 Results 

More Broadcast Vendor M&A: DTS to Acquire SRS Labs for $148 Million

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