Audio processing specialist DTS announced that its revenue for the third quarter of 2012 was $22.2m, an increase of 8% versus the same period a year ago, and an increase of 5% versus the previous quarter.
The company attributed its year-over year revenue increase to growth “network-connected markets” — – such as connected TVs, mobile and automotive – which grew 41% versus last year. Blu-ray revenue was essentially flat versus last year and up 17% versus last quarter. Revenue from DVD, stand-alone DMP and broadcast products declined versus last year.
The GAAP net loss for the quarter was $19.1m, or -$1.04 per, compared to net income of $2.9m, or $0.17 per share last year, and a GAAP net loss of $755,000, or -$0.05 per share, last quarter. The company attributed the loss in the quarter to acquisition and integration-related costs, stock-based compensation, and amortization of intangibles.
The non-GAAP net loss in the quarter was $11.1m, or -$0.61 per share, compared to non-GAAP net income of $4.5m, or $0.26 per share, last year, and non–GAAP net income of $3.5m last quarter.
The company attributed the non-GAAP net loss to the accounting treatment of the SRS acquisition, under which it recognized costs related to the acquisition without being able to recognize most of the associated revenue. This net loss was also the result of the tax impact of lower profitability on its global licensing entity located in Ireland.
The Company generated $6.7m in cash flow from operations during the third quarter of 2012, compared to $4m during the third quarter of 2011, and closed the quarter with cash and investments of $80.7m.
“Consistent with our strategy, DTS delivered attractive revenue growth in the network-connected markets despite what has been a challenging macroeconomic environment,” said Jon Kirchner, chairman and CEO of DTS, Inc. “We are pleased with our progress in the network-connected markets this quarter, which includes several recent smartphone and tablet product announcements. Looking ahead, with the SRS integration expected to be complete by year-end, DTS is well-positioned to capitalize on the significant market opportunities being created by an increasingly connected world. While our results through 2012 will continue to be impacted by significant acquisition-related noise, we believe the long-term prospects for our strategic markets are very much intact and we remain focused on accelerating growth in a difficult environment.”
Press Release: DTS Reports Third Quarter 2012 Results
© Devoncroft Partners. All Rights Reserved.