|By Business Wire||
|January 29, 2013 04:07 PM EST||
Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company's financial results for the first quarter of fiscal year 2013. For the first quarter, Dolby reported total revenue of $236.6 million, compared to $234.2 million for the first quarter of fiscal year 2012.
First quarter GAAP net income was $51.3 million, or $0.50 per diluted share, compared to $73.2 million, or $0.67 per diluted share, for the first quarter of fiscal year 2012. On a non-GAAP basis, first quarter net income was $66.4 million, or $0.64 per diluted share, compared to $83.1 million, or $0.76 per diluted share, for the first quarter of fiscal year 2012. Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
“We had a solid first quarter,” said Kevin Yeaman, President and Chief Executive Officer, Dolby Laboratories. “More mobile devices than ever feature Dolby sound, and the rapidly growing number of movie titles in Dolby Atmos shows that the industry has embraced our new, more immersive cinema sound format.”
Dolby anticipates total revenue to range from $240 million to $250 million. Gross margin percentages are projected to be comparable to what they were in the first quarter of fiscal 2013.
Dolby anticipates that operating expenses will be approximately $145 million on a GAAP basis and $127 million on a non-GAAP basis.
Dolby expects diluted earnings per share to be between $0.53 and $0.60 on a GAAP basis and between $0.68 and $0.75 on a non-GAAP basis.
The Company estimates that its fiscal Q2 2013 effective tax rate will range from 26 percent to 27 percent.
FISCAL YEAR 2013
Dolby now anticipates total revenue will range from $910 million to $950 million.
Dolby now anticipates that operating expenses will be approximately $572 million on a GAAP basis and $500 million on a non-GAAP basis.
The Company's Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss Dolby Laboratories' first quarter fiscal 2013 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, January 29, 2013.
Access to the teleconference will be available over the Internet from http://investor.dolby.com/medialist.cfm or by dialing 1-888-430-8690. International callers can access the conference call at 1-719-457-2659.
A replay of the call will be available from 5:00 p.m. PT on Tuesday, January 29, 2013, until 9:00 p.m. PT on February 5, 2013 by dialing 1-877-870-5176 (international callers can access the replay by dialing 1-858-384-5517) and entering the confirmation code 6647713. An archived version of the teleconference will also be available on the Dolby Laboratories website at www.dolby.com.
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP basis, Dolby provides non-GAAP financial measures of operating expense, net income, and diluted earnings per share. These measures are adjusted to exclude amounts related to stock-based compensation, the amortization of intangibles from business combinations, restructuring charges, and the related tax impact of these items. Dolby presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations. Dolby's management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes the impact of stock-based compensation expense, expense associated with dividend equivalents paid on restricted stock units, amortization of intangible assets acquired through business combinations, restructuring charges, the related tax impact of all of these items on the provision for income taxes, and the non-GAAP measures that exclude such information in order to assess the performance of Dolby's business for planning and forecasting in subsequent periods. Dolby's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses such non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its SEC filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on Dolby's investor relations website at http://investor.dolby.com/medialist.cfm.
Certain statements in this press release, including, but not limited to, statements relating to Dolby's expected financial results for Q2 2013 and fiscal 2013, and its statements regarding the growing use and anticipated benefits of its technologies and products are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks associated with trends in the markets in which Dolby operates, including the personal computer, DVD, and Blu-ray Disc™, broadcast, consumer electronics, gaming, mobile, and automobile markets; pricing pressures; risks associated with the rate at which OEMs include optical disc playback in Windows 8 devices and the rate of consumer adoption of Windows operating systems; risks that shift from disc-based media to online media content could result in fewer devices with Dolby technologies; risks associated with the effects of macroeconomic conditions; the timing of Dolby's receipt of royalty reports and/or payments from its licensees; Dolby's accuracy of calculation of royalties due to its licensors; Dolby's ability to develop, maintain, and strengthen relationships with industry participants; Dolby's ability to develop and deliver innovative technologies in response to new and growing markets in the entertainment industry; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture industry generally; the development and growth of the market for digital cinema and digital 3D and Dolby's ability to successfully penetrate this market; Dolby's ability to expand its business generally, and to expand its business beyond sound technologies to other technologies related to digital entertainment delivery, by acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in its most recent Annual report on Form 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby Laboratories
Dolby Laboratories (NYSE:DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound from the cinema to the living room to mobile devices, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go. For more information about Dolby Laboratories or Dolby® technologies, please visit www.dolby.com.
Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. Dolby Atmos is a trademark of Dolby Laboratories. Blu-ray Disc is a trademark of the Blu-ray Disc Association. Windows is a registered trademark of Microsoft Corporation. S13/26539 DLB-F
|DOLBY LABORATORIES, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share amounts)|
|Fiscal Quarter Ended|
|Cost of revenue:|
|Cost of licensing||3,080||3,328|
|Cost of products||18,489||13,888|
|Cost of services||4,036||3,194|
|Total cost of revenue||25,605||20,410|
|Research and development||42,436||32,826|
|Sales and marketing||58,421||43,816|
|General and administrative||43,108||35,465|
|Restructuring charges, net||
|Total operating expenses||143,965||112,475|
|Other income, net||2,027||1,911|
|Income before income taxes||69,059||103,204|
|Provision for income taxes||(17,582||)||(29,838||)|
|Net income including controlling interest||51,477||73,366|
|Less: net (income) attributable to controlling interest||(128||)||(207||)|
|Net income attributable to Dolby Laboratories, Inc.||$||51,349||$||73,159|
|Net income per share:|
|Weighted-average shares outstanding:|
|DOLBY LABORATORIES, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||316,193||$||492,600|
|Accounts receivable, net||51,797||43,495|
|Prepaid expenses and other current assets||28,203||33,832|
|Total current assets||618,558||970,286|
|Property, plant and equipment, net||254,361||254,676|
|Intangible assets, net||52,913||56,526|
|Other non-current assets||11,716||13,687|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Income taxes payable||12,890||2,424|
|Total current liabilities||144,465||156,840|
|Long-term deferred revenue||18,893||18,192|
|Other non-current liabilities||40,078||39,837|
|Class A common stock||47||46|
|Class B common stock||55||57|
|Additional paid-in capital||
|Accumulated other comprehensive income||11,214||10,687|
|Total stockholders’ equity – Dolby Laboratories, Inc.||1,327,777||1,720,269|
|Total stockholders’ equity||1,345,800||1,743,233|
|Total liabilities and stockholders’ equity||$||1,551,950||$||1,960,798|
|DOLBY LABORATORIES, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Fiscal Quarter Ended|
|Net income including controlling interest||$||51,477||$||73,366|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||13,129||9,929|
|Amortization of premium on investments||3,794||4,920|
|Excess tax benefit from exercise of stock options||(469||)||(57||)|
|Provision for doubtful accounts||(179||)||(52||)|
|Deferred income taxes||(2,627||)||(7,643||)|
|Other non-cash items affecting net income||(691||)||1,227|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||8,625||1,101|
|Accounts payable and other liabilities||(19,898||)||(22,860||)|
|Income taxes, net||9,512||24,431|
|Other non-current liabilities||1,012||392|
|Net cash provided by operating activities||67,009||95,792|
|Purchases of available-for-sale securities||(204,135||)||(54,726||)|
|Proceeds from sales of available-for-sale securities||389,068||51,488|
|Proceeds from maturities of available-for-sale securities||51,325||47,645|
|Purchases of property, plant and equipment||(6,717||)||(12,566||)|
|Acquisitions, net of cash acquired||—||(575||)|
|Purchases of intangible assets||(4,048||)||—|
|Proceeds from sales of property, plant and equipment and assets held for sale||19||335|
|Net cash provided by investing activities||222,512||31,601|
|Proceeds from issuance of common stock||4,502||813|
|Repurchase of common stock||(53,956||)||(26,068||)|
|Payment of cash dividend||(408,206||)||—|
|Distribution to controlling interest||(5,039||)||—|
|Excess tax benefit from the exercise of stock options||469||57|
|Shares repurchased for tax withholdings on vesting of restricted stock||(3,636||)||970|
|Net cash used in financing activities||(465,866||)||(24,228||)|
|Effect of foreign exchange rate changes on cash and cash equivalents||(62||)||(263||)|
|Net increase in cash and cash equivalents||(176,407||)||102,902|
|Cash and cash equivalents at beginning of period||492,600||551,512|
|Cash and cash equivalents at end of period||$||316,193||$||654,414|
|Cash paid for income taxes||$||11,734||$||13,047|
|Cash paid for interest||$||1||$||36|
|GAAP to Non-GAAP Reconciliations|
|(In millions, except per share data)|
|The following tables show the Company’s first quarter of fiscal years 2013 and 2012 GAAP financial measures reconciled to Non-GAAP financial measures included in this release:|
|Net income:||Fiscal Quarter Ended|
|GAAP net income||$||51.3||$||73.2|
|Amortization of acquired intangibles||3.4||2.7|
|Restructuring charges, net||—||0.3|
|Income tax adjustments||(6.0||)||(4.5||)|
|Non-GAAP net income||$||66.4||$||83.1|
|Diluted earnings per share:||Fiscal Quarter Ended|
|GAAP diluted earnings per share||$||0.50||$||0.67|
|Amortization of acquired intangibles||0.03||0.03|
|Restructuring charges, net||—||—|
|Income tax adjustments||(0.06||)||(0.04||)|
|Non-GAAP diluted earnings per share||$||0.64||$||0.76|
|Shares used in computing diluted earnings per share (in millions)||104||109|
|The following tables show the Company’s second quarter and fiscal year 2013 GAAP financial targets reconciled to non-GAAP financial targets included in this release (numbers are approximate):|
|Operating expenses:||Q2 2013||
Fiscal Year 2013
|GAAP operating expenses||$||145||$||572|
|RSU Dividend Equivalent||(2||)||(5||)|
|Amortization of acquired intangibles||(1||)||(4||)|
|Non-GAAP operating expenses||$||127||$||500|
|Diluted earnings per share:||Q2 2013|
|GAAP diluted earnings per share||$||0.53||$||0.60|
|RSU Dividend Equivalent||0.02||0.02|
|Amortization of acquired intangibles||0.03||0.03|
|Income tax adjustments||(0.04||)||(0.05||)|
|Non-GAAP diluted earnings per share||$||0.68||$||0.75|
|Shares used in computing diluted earnings per share||103||103|
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Jul. 24, 2016 04:15 PM EDT Reads: 1,532
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Jul. 24, 2016 03:45 PM EDT Reads: 1,713
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 24, 2016 03:30 PM EDT Reads: 880
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 24, 2016 03:30 PM EDT Reads: 573
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 24, 2016 03:15 PM EDT Reads: 548
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 24, 2016 03:15 PM EDT Reads: 1,663
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 24, 2016 03:00 PM EDT Reads: 995
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 24, 2016 02:30 PM EDT Reads: 738
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Jul. 24, 2016 02:00 PM EDT Reads: 1,183
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 24, 2016 01:30 PM EDT Reads: 793
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 24, 2016 01:00 PM EDT Reads: 975
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jul. 24, 2016 12:00 PM EDT Reads: 1,881
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 24, 2016 12:00 PM EDT Reads: 1,865
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Jul. 24, 2016 12:00 PM EDT Reads: 1,327
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Jul. 24, 2016 11:45 AM EDT Reads: 1,845