DTS Q1 2013 Revenue Rises 22 Percent

Posted by Joe Zaller
May 09 2013

Audio processing specialist DTS announced that its revenue for the first quarter of 2013 was $32.7m, an increase of 22% versus the same period a year ago, and an increase of 10% versus the previous quarter.

The company said its network-connected business, which includes cone ted TVs, PCs and mobile devices, grew 246% year-over-year, but that sales to DVD and Blu-ray.

The GAAP net loss for the first quarter of 2013 was $1.5m, or $0.08 per share, compared to GAAP net income of $4m, or $0.24 per share, in the first quarter of 2012. Non-GAAP net income in the quarter was $4m, or $0.22 per share net of tax, compared to non-GAAP net income of $6.2m, or $0.37 per share net of tax, in the first quarter of 2012.

The GAAP operating margin in the first quarter of 2013 was 3%, compared to 26% in the first quarter of 2012. The non-GAAP operating margin in the first quarter of 2013 were 21%, down from 38% in the first quarter of 2012.

The results beat the expectations of equity analysts who were looking for revenue of $30.23m and non-GAAP net income of $0.14.

The Company closed the quarter with cash and investments totaling $76.6 million.

“DTS delivered strong revenue growth in the first quarter, consistent with our expectations, driven again by accelerating momentum in the network-connected markets,” said DTS chairman & CEO Jon Kirchner. “The strategic investments we have made in technology, products and content partnerships to expand our network-connected footprint are continuing to translate into meaningful design wins and customer momentum, particularly in mobile. The recent launches of our Headphone:X and DTS Layered Audio technologies continue to generate significant industry excitement. These launches, combined with new product and customer announcements during the quarter from a number of manufacturers, including Toshiba, Asustek, Samsung and Yulong, position us well to continue to drive our network-connected business in 2013 and beyond.”

 

Business Outlook

The Company continues to expect 2013 revenue in the range of $140 to $146 million, including a normal level of royalty recoveries, non-GAAP operating margin in the low- to mid-20s and non-GAAP EPS in the range of $1.05 to $1.20 per diluted share based on a normalized 40% effective tax rate. Stock-based compensation expense is expected to be in the range of $0.44 to $0.47 per diluted share net of tax and amortization of intangibles is expected to be in the range of $0.39 to $0.42 in 2013. On a GAAP basis, the Company expects an operating margin of approximately 3% to 6% and now expects EPS in the range of $(0.05) to $0.00 per diluted share.

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Related Content:

Press Release: DTS Reports First Quarter 2013 Financial Results

Previous Quarter: DTS Reports Fourth Quarter and Fiscal 2012 Financial Results

Previous Year: DTS Reports First Quarter 2012 Results

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