Posts Tagged ‘Kevin Yeaman’

Dolby Announces 2016 Results; Continued Dolby Vision Progress

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Nov 03 2016

Dolby announced fiscal fourth quarter and full year revenue for the twelve months ending September 30, 2016.  2016 fiscal year revenue was $1,025.7 million, a 5.68% increase versus the 2015 fiscal year.  Dolby_logo.svg

Full year revenue was within the guidance provided at the end of fiscal 2015 for total revenue between $1 billion and $1.03 billion.

2016 FY GAAP net income was $185.9 million or $1.81 earnings per share (diluted).  This represents a 2.5% increase over the net income for the 2015 fiscal year of $181.4 million ($1.75 earnings per share).

GAAP gross margins were 89.4% for the year, a slight decrease versus the gross margins of 90.2% from the year earlier period.  Operating margins were 23%, an increase of 100 basis points over the operating margins from fiscal 2015.

2016 Fiscal Year Revenue by Type:

Dolby reports revenue across licensing, product, and service activities.  Product revenues consists primarily of sales of Digital Cinema Servers and Dolby Cinema Audio Products.

  • Licensing revenue for fiscal year 2016 was $917.0 million, an increase of 5.6% versus fiscal year 2015.
  • Product revenue was $90.5 million for the year, an increase of 7.9% compared to the 2015 fiscal year.
  • Services revenue were $18.2 million during fiscal year 2016, a decrease of 2.5% against 2015.

Product gross margins for 2016 were 28%, a substantial increase over the 16% gross margins from 2015.

2016 Fiscal Year Licensing Revenue by Customer Vertical:

Licensing revenue in the Broadcast vertical for televisions and set-top box sales was 46% of total licensing revenue or $421.8 million during fiscal 2016.  On an aggregate basis, broadcast licensing grew 10.4% versus the 2015 fiscal year.

As part of management’s prepared comments on the Dolby’s earnings call, President and CEO Kevin Yeaman drew attention to the strong performance in the broadcast sector.  “We had another strong year in broadcast. Dolby Audio is an established format in developed markets like North America and Western Europe, and we are well positioned in areas like Africa, India and China, when the transition to digital broadcast is underway. Future growth in broadcast will come from the continued migration of emerging markets to digital televisions and the rollout of high-definition and 4K set-top boxes with Dolby Audio in both developed and emerging markets” said Mr. Yeaman (Sourced from Seeking Alpha transcript).

Fiscal Q4 2016 Results:

Fiscal fourth quarter revenue was $233 million, flat against the year earlier period, and a decrease of 16.1% versus the preceding quarter, FQ3 2016. Management attributed the sequential drop in revenue to the higher timing of licensing payments in Q3 compared to Q4.

For the quarter, Dolby’s GAAP net income was $23.9 million or $0.23 earnings per share, a 48.6% decline when measured against the fiscal fourth quarter of 2015, and a 62.4% decline against the preceding quarter.

GAAP Gross Margins were 87% during the fourth quarter, a 210 basis point decline from the year earlier period and a 410 basis point decline versus FQ3 2016.  Operating margins were 16%, an increase over the 12% from FQ4 2015 and a decrease versus the 29% operating margins during the preceding quarter.

Management guidance at the end of third fiscal quarter was for revenue in the range of $220 million to $230 million for the fourth quarter with gross margins between 88% and 89%, and GAAP earnings per share of $0.16 and $0.22.  Dolby exceeded its guidance on both revenue and earnings per share, though underperformed on gross margins.

Update on Dolby Atmos, Doly Cinema, and Dolby Vision:

Among the revenue drivers cited by management were the growing adoption of Dolby Atmos (next-generation immersive audio technology), Dolby Vision (next-generation imaging technology), and Dolby Cinema (premium cinema experience combining multiple Dolby technologies).

  • Dolby Atmos is now installed or committed in over 2,400 cinematic screens worldwide. 550 feature films using Dolby Atmos have been announced or released.
  • The first televisions incorporating Dolby Vision become available in the past year. LG is including Dolby Vision in their OLED and Super UHD LCD TVs; VIZIO is including Dolby Vision in their R, P, and M Series; and TCL and Skyworth are also shipping TVs with Dolby Vision.  Content incorporating Dolby Vision is now available from Warner Bros., Sony Pictures, MGM, Universal, Lionsgate, Netflix and Amazon Studios.
  • Over 30 Dolby Cinema locations were added during 2016, bringing the total to over 40.

“We are well on our way to establishing that Dolby Vision is the best way to experience HDR content” stated Mr. Yeaman on Dolby’s earning call with analysts.  “Our job this year is to accelerate the deployment of Dolby Vision” continued Mr. Yeaman.

Financial Guidance

Dolby’s guidance for the fiscal year 2017 is for revenue between $1.06 billion and $1.09 billion.  Broadcast licensing revenue is expected to remain relatively flat in 2017.

Guidance for the first quarter of fiscal 2017 is revenue in the range of $250 million to $260 million, gross margins between 88% and 89%, and earnings per share between $0.34 and $0.40.

 

 

Related Content:

Press Release: Dolby Fiscal Fourth Quarter and Full Year 2016 Earnings Release

Earnings Transcript: Dolby Fiscal Fourth Quarter Results (SeekingAlpha)

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

Dolby Q3 Outperforms; Management Offers Updates on Atmos and Vision Adoption

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 11 2016

Dolby announced revenue for its third fiscal quarter (ending July 1, 2016) of $277.6 million, up 19.8% versus the year earlier period, and an increase of 1.2% versus the preceding quarter, Q2 2016 .  Dolby_logo.svg

GAAP net income for the quarter was $63.6 million or $0.62 earnings per share (diluted).  This represents a 79% increase over the net income for the fiscal third quarter of 2015 of $35.5 million ($0.34 earnings per share), and a sequential decline of 5.6% against the preceding quarter.

GAAP Gross Margins were 91.1% for the quarter, an increase over the gross margins of 89.3% from the year earlier period and equivalent to the gross margins recorded during fiscal Q2 2016.  Operating margins were 29%, an increase over the 19% from fiscal Q3 2015 and a slight decline against the 29% operating margins during the preceding quarter.

Management guidance from the preceding quarter was for revenue in the range of $260 million to $275 million, gross margins between 89% and 90%, and earnings per share between $0.47 and $0.53. Dolby’s actual results exceed guidance in all areas.

The financial outperformance against guidance was attributed to increased adoption in the mobile and Digital Media Adapters (“DMAs”) and the timing of customer payments skewing toward the recently completed quarter.

Revenue by Type:

Dolby reports revenue across licensing, product, and service activities.  Product revenues consists primarily of sales of Digital Cinema Servers and Dolby Cinema Audio Products.

  • Licensing revenue for FQ3 2016 was $253.0 million, an increase of 23.5% versus FQ3 2015 and a 1.5% increase versus FQ2 2016.
  • Product revenue was $20.6 million, a decline of 8.7% compared to the year earlier period, and an increase of 2.8% versus FQ2 2016 results. Year-over-year declines are consistent with the broader cinema equipment market, which has been impacted by the recent completion of the conversion from film to digital.
  • Services revenue were $3.9 million during the fiscal third quarter, a decrease of 7.7% against FQ2 2015 and a decrease of 20.6% versus the fiscal second quarter’s results.

Product gross margins for FQ2 2016 were 31.7%, a substantial increase over the 11.4% gross margins from FQ3 2015 and a slight increase over the 30.3% gross margins in FQ2 2016.  According to Dolby’s SEC filing, the higher product gross margins stemmed from lower charges for excess and obsolete inventory along with reduced manufacturing variances.

Licensing Revenue by Customer Vertical:

Licensing revenue in the Broadcast vertical for televisions and set-top box sales was 39% of total licensing revenue or $98.7 million.  On an aggregate basis, Broadcast licensing grew 4.7% versus FQ3 2015, though declined 12.0% versus the preceding quarter, FQ2 2016.  As a percentage of total licensing revenue, Broadcast contributed 46% in FQ3 2015 and 45% during the FQ2 2016.

The remainder of Dolby’s licensing revenue is attributable to PC, Mobile, Consumer Electronics, and Other (Video game consoles, automobile entertainment, and audio conferencing).

Management attributed the sequential drop in Broadcast licensing to normal seasonality.  The year-over-year increase for Broadcast was due to emerging market transition to digital broadcast.  In particular in China where China Telecom and China Unicom specified Dolby Audio on their respective 4K IPTV set-top boxes.

Update on Dolby Atmos, Doly Cinema, and Dolby Vision:

As part of the earning release, Dolby disclosed several data points on the growing adoption of Dolby Atmos, the Company’s next-generation immersion audio technology.

There are now nearly 2,000 screens worldwide where Dolby Atmos is installed or committed.  Over 490 Dolby Atmos titles have been announced or released.  In the television sector during the quarter, the French Rugby League Final was delivered by Orange in Dolby Atmos and Comcast announced plans to deliver Dolby Atmos content later this year.

Management also provided an update on the progress of Dolby Cinema, a premium branded cinema. There are now more than 30 Dolby Cinema locations open and another 220 Dolby Cinema locations are scheduled for roll out around the world.  Dolby Cinema exhibitor partners include AMC (US), Wanda and Jackie Chan (China), Vue (Netherlands), and Cineplex (Austria).

In its call with analysts, Dolby’s management cited several developments with Dolby Vision, the Company’s high dynamic range imaging technology.

Since its launch in May, there have been 50 Dolby Vision theatrical titles announced or released.  Examples include the recent high-profile films Star Trek Beyond and The Legend of Tarzan.  

Lionsgate, Universal Pictures, Sony Pictures, and Warner Bros have all announced plans to create Dolby Vision content for the home.  Management is anticipating up to 100 Dolby Vision titles available for home entertainment by the end of 2016.

Dolby Vision has made further progress with television set manufacturers.  The second largest TV manufacturer in the world, LG now includes Dolby Vision in its full lineup of 2016 OLED and Super UHD LCD TVS.  Vizio (2nd largest in TV Manufacturer in US) now has Dolby Vision in its R-series, P-series, and M-series of televisions.  In addition, Dolby Vision TVs are now shipping from Skyworks, the third largest TV manufacturer in the world.

In the over-the-top (“OTT”) sector, Dolby Vision is now streaming from Amazon, Netflix, and Vudu.

Financial Guidance

Management guidance for the fiscal fourth quarter is revenue in the range of $220 million to $230 million, gross margins between 88% and 89%, and earnings per share between $0.16 and $0.22.  Broadcast licensing is anticipated to represent 45% of total revenue during FQ4 2016.

Commenting on the quarter’s results, Kevin Yeaman, President and CEO, Dolby Laboratories stated, “Q3 results were strong, and we continued to build momentum with our new initiatives. We opened our first Dolby Cinema locations in China, grew the number of Dolby Vision televisions in market, and added a new Dolby Voice partner.”

 

Related Content:

Press Release: Dolby Fiscal Q3 2016 Earnings Release

 

 

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Broadcast Vendor M&A: Dolby to Acquire Doremi for $92.5 Million

broadcast technology market research | Posted by Joe Zaller
Feb 24 2014

Dolby Labs has signed a definitive agreement to acquire digital cinema replay server vendor Doremi for $92.5 million in cash plus an additional $20 million in contingent consideration that may be earned over a four-year period.

The addition of the Doremi product line complements Dolby’s existing line-up of digital cinema replay servers.  Dolby was a pioneer in this market, and enjoyed strong success in markets such as North America, where its system was adopted.  According to filings with US securities regulators, Dolby’s cinema product business (which includes more than just digital cinema replay servers) delivered $169.69m of revenue in 2010, but by the end of 2012 had declined 47% to $88.88m.

Doremi has established a strong foothold in emerging markets where the conversion of cinemas to digital projection technology has not been completed. According to company press releases, Doremi claims to have a 70% market share of digital cinema servers in Latin America, and to have shipped 55,000 of its digital cinema replay servers, including 5,000 units between June – December 2013.

Doremi says it was the first company to achieve compliance with the Digital Cinema Initiative (DCI) specification, and that its digital cinema replay products support 4K development and 3D High Frame Rate playback, which eh company says has “been a en a major contributor to the company’s success.”

Interestingly Dolby’s announcement specifically mentions the company’s new Atmos “object-based sound platform.”  Thus it’s likely that in addition to gaining share in developing markets, Dolby is using the Doremi acquisition as a way to expand the base of Atmos-enabled cinemas around the world.  If this strategy succeeds, Dolby can use the leverage of a large theatrical installed base to further enhance its core business of licensing technology for consumer applications.

Dolby has stated previously that Atmos technology, initially designed for the cinema can be brought to home users for TV and listening via headphones.

However, Dolby has competition for the next generation of consumer audio licensing opportunities. DTS and Fraunhofer have both developed “multi-dimensional audio” codecs with speakers enveloping the viewer (placed on the sides, in front, back and on top).

Rival DTS has developed its Ultra High-Definition (UHD) audio system (aka “Neo:X” consisting of 11.1 channels). German based research organization Fraunhofer (developer of the MP3 audio codec) has developed MPEG-H (up to 22.2 channels), which consists of an Extended HE-AAC based audio codec and a 3-D rendering engine, which supports the efficient transmission of “3-D audio signals” and flexible rendering for the playback of 3D audio in a wide variety of listening scenarios.

“Dolby and Doremi Labs have complementary technology expertise and solutions”

“Dolby and Doremi Labs have complementary technology expertise and solutions,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “Together we’ll be able to advance the pace of innovation and create the kind of cinematic experiences that drive movie attendance for our exhibitor partners.”

“For more than 40 years, Dolby has provided innovative technology to the cinema exhibition industry, offering storytellers the tools and technology to express their visions in new ways,” said Camille Rizko, Founder and President, Doremi Labs. “But more importantly, Dolby shares our commitment to working closely with exhibitors to bring amazing experiences to moviegoers.”

According to Dolby, the acquisition is subject to customary closing conditions, including review by US and international regulators. Depending on these conditions, the transaction is anticipated to close by the end of 2014. The impact of the acquisition on fiscal year 2014 revenue and non-GAAP results is not expected to be material.

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Related Content:

Press Release: Dolby Signs Agreement to Acquire Doremi Labs

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Dolby Beats Expectations in Fiscal Q2

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Apr 30 2013

Dolby announced that its revenue for the second quarter of fiscal year (FY) 2013 was $249.3m, down 5% versus the same period a year ago.

Second quarter FY 2013 GAAP net income was $61.9m, or $0.60 per share, down 30% from $88.1m, or $0.81 per share, last year.

Non-GAAP net income in for the quarter was $76.4m, or $0.74 per share, down from $99.2m, or $0.91 per share, last year.

Despite the lower year-over-year revenue and earnings, the company’s performance significantly exceeded the expectations of analysts, and sent its shares higher.

“In the second quarter, we continued to grow our presence in the broadcast and mobile markets,” said Dolby president & CEO Kevin Yeaman. “In addition, key partners endorsed our newest technologies. BT unveiled the first business conferencing service with Dolby Voice, and James Cameron and Vince Pace’s Cameron Pace Group is backing our Dolby glasses-free 3D format.”

 

Financial Outlook

Dolby says it anticipates total FY Q3 revenue to be in the range of $205m to $215m, with gross margins of approximately 89% on a GAAP basis and 90% on a non-GAAP basis.

The company anticipates that FY Q3 operating expenses will be approximately $145m on a GAAP basis and $125m on a non-GAAP basis.

Fiscal Q3 EPS is expected to be between $0.26 and $0.32 on a GAAP basis and between $0.42 and $0.49 on a non-GAAP basis.

For the full year FY 2013 Dolby now anticipates that total revenue will be in the range of $910m to $940m, and that operating expenses will be approximately $572m on a GAAP basis and approximately $500m or less on a non-GAAP basis.

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Related Content:

Press Release: Dolby Laboratories Reports Second Quarter Fiscal 2013 Financial Results

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Dolby Revenue Declines 8 Percent in Q4 Fiscal 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 14 2012

Dolby announced that its revenue for the fourth quarter of its 2012 fiscal year was $224.8m, down 8% versus the same period a year ago.

Fourth quarter GAAP net income was $51.5m, or $0.49 per diluted share, compared to $79.1m, or $0.71 per diluted share, for the fourth quarter of fiscal 2011. On a non-GAAP basis, fourth quarter net income was $63.8 million, or $0.61 per diluted share, compared to $89.9 million, or $0.81 per diluted share, for the fourth quarter of fiscal 2011.

Fiscal year GAAP net income was $264.3m, or $2.46 per diluted share, compared to $309.3m, or $2.75 per diluted share, for fiscal 2011. On a non-GAAP basis, fiscal year net income was $306.9m, or $2.85 per diluted share, compared to $339.9m, or $3.02 per diluted share, for fiscal 2011.

“Fourth quarter revenue came in higher than expected, primarily due to strength in mobile devices,” said Dolby Kevin Yeaman, President and CEO. “We continue to see increasing adoption of our technologies in smartphones and tablets, and during the quarter, Amazon incorporated Dolby as a key feature in its latest family of Kindle Fire HD products.”

 

Outlook for Q1 Fiscal 2013

For fiscal Q1 2013, Dolby is anticipating total revenue to range from $215m to $225m. For fiscal Q1 2013, gross margin is estimated to be approximately 90 percent on a GAAP basis and 91 percent on a non-GAAP basis.

For fiscal Q1 2013, Dolby is estimating that operating expenses will be approximately $135m on a GAAP basis, and approximately $120m on a non-GAAP basis. Included in the estimated GAAP basis operating expenses for fiscal Q1 2013 are approximately $14m of stock-based compensation expense and $1m of charges related to the amortization of acquired intangibles.

 

Outlook for Fiscal 2013

For fiscal 2013, Dolby is anticipating total revenue to range from $900m to $950m.

For fiscal 2013, Dolby estimates that operating expenses will be approximately $550m on a GAAP basis, and $490m on a non-GAAP basis. Dolby’s non-GAAP expenses exclude amounts related to stock-based compensation, the amortization of intangibles from business combinations, and restructuring charges. Non-GAAP results would also include the related tax impact of these items. Although stock-based compensation expense may vary based on factors such as stock price or volatility, the amount for fiscal 2013 is anticipated to be approximately $55m. Operating expenses related to the amortization of acquired intangibles are expected to be approximately $5m for the fiscal year. The Company does not currently anticipate any restructuring charges in fiscal 2013.

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Press Release: Dolby Laboratories Reports Fiscal 2012 Fourth Quarter and Year-End Financial Results

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Dolby Says Q3 2012 Results Were Down 5 Percent, Lowers Full Year Guidance

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 05 2012

Dolby announced that its revenue for the third quarter of its 2012 fiscal year was $207.9m, down 5% versus the same period a year ago, and up 12% versus the previous quarter. GAAP net income in the quarter was $51.5m, or $0.48 per share, down from $61.7m, or $0.55 per share, last year, and $88.1m last quarter. On a non-GAAP basis, third quarter net income was $60.8m, or $0.57 per share, compared to $72.8m, or $0.65 per share, last year.

The results were below the expectations of equity analysts, who were on average looking for revenue of $218.3m and earnings of $0.58 per share.  Investors did not like the news, and sent Dolby’s shares down by more than 14% on the day after the company’s earnings were announced.

Licensing revenue during the quarter was $178.4m, a decrease of 2% versus last year, and a decrease of 21% versus the previous quarter. Dolby CFO Lewis Chew attributed the year-over-year decline to the company’s CE and PC markets, but said the drop was partially offset by growth the broadcast market. Chew said the quarter-over-quarter decline was mainly due to seasonality since the increased shipment activity during the holiday period was reflected in Dolby’s fiscal Q2 revenues.

Product revenue in the quarter was $22.1m, down 22% versus last year, and down 19% versus last quarter.  Product revenue declined due to lower shipments of 3D and digital cinema systems.

Service revenue in the quarter was $7.3m, down 17% versus last year, and down 5% versus last quarter.

GAAP gross margins for the quarter were 89.9%, down from 91% last quarter. Non-GAAP gross margins were 90.8%.  Gross margins from licensing were 98.4%.  Product gross margins in the quarter were 34.4%.

On the company’s conference call with equity analysts, Dolby CEO Kevin Yeaman said “we are seeing underlying softness in some of the product categories we license due to general weakness in the global economy. While this impacted our third quarter results and full year outlook, we continue to make progress in many of our key initiatives to better position us for long-term growth. We expect this growth to come from platforms like cloud-based delivery and digital broadcast.”

 

Financial Guidance Revised Down

Dolby says it is now anticipating total for the full fiscal year 2012 to be in the range of $900m to $920m, down from the range of $910m to $960m discussed last quarter.  Gross margins for the year are expected to be approximately 90%.  Full year 2011 revenue was $955.5m.

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Related Content:

Press Release: Dolby Laboratories Reports Third Quarter Fiscal 2012 Results

Dolby Q3 2012 Earnings Call Transcript

Previous quarter: Dolby Announces Q2 2012 Results, Says Its Technology Will be Included in Windows 8

Previous Year: Dolby Q3 Revenue Declines on Lower Prices for 3D and D-Cinema, Discloses That Dolby Technology Not Part of Windows 8

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Dolby Laboratories Reports First Quarter Fiscal 2012 Results

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 01 2012

Dolby announced that its revenue for the first quarter of its 2012 fiscal year was $233.4m, down 4% versus the same period a year ago, and down 4% versus the previous quarter. GAAP net income in the fourth quarter was $73.2m, down 15% from $86.4m last year.  Despite the company’s declining revenue and net income, the results exceeded the consensus expectations of equity analysts.

Licensing revenue during the quarter was $199.6m, an increase of 6% versus the same period ago. Product revenue in the quarter was $26.4m, down 43% versus the same period a year ago. Services revenue in the quarter was $7.4m, down 14% versus last year.

The overall gross margin for the quarter was 91% versus 88% last year and 87% last quarter.

 

Financial Guidance

For fiscal 2012, Dolby says it is targeting revenue of $910 million to $970 million. Full year 2011 revenue was $955.5m.

 

“In the first quarter, we grew licensing revenue year over year on the strength of our broadcast and mobile markets,” said company president & CEO Kevin Yeaman. “We continue to enhance the entertainment experience in online content with the addition of services such as HBO Go®, which recently announced the adoption of Dolby® Digital Plus.”

 

Related Content:

Dolby Press Release: Dolby Laboratories Reports First Quarter Fiscal 2012 Results

Dolby Q1 2012 Conference Call Transcript

Previous Quarter: Dolby Laboratories Reports Fiscal 2011 Fourth Quarter and Year-End Financial Results

 

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

Broadcast technology vendor financials, Quarterly Results | 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%. 

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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.

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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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Dolby Reports Q4 and Full Year Results, Achieves Record Profitability for the Year

Broadcast technology vendor financials, Broadcaster Financial Results, Quarterly Results | Posted by Joe Zaller
Nov 04 2010

Dolby Labs reported today that its revenue for the fourth quarter of its fiscal 2010 was $228.7m, an increase of 39% versus the 4th quarter of 2009.   Fourth quarter GAAP net income was $65m, an increase of 47% compared to the same period a year ago.

During the quarter, licensing revenues grew 29% to $178.4m, and product revenue doubled to $40.3m.

For the full fiscal year the company said that its revenue grew 28% to $922.7m, compared to $719.5m million for fiscal year 2009.  Fiscal year GAAP net income was $283.4 million, 17% higher than in fiscal 2009.

For the full year, licensing revenue grew by 19% to $594.7m, while product revenue jumped 88% to $180.4m.

Company president & CEO Kevin Yeaman said he was pleased with the results, saying.  “We finished the year with record revenue and profitability while continuing to extend our multi-channel formats to the online ecosystem.”

The company issued guidance for fiscal 2011, saying that it is targeting revenue of $950m to $990m with total gross margin of approximately 88 percent on a GAAP basis. 

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You can read the full Dolby Q4 and FY 2010 press release here.

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