|By Business Wire||
|January 23, 2014 04:05 PM EST||
Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company’s financial results for the first quarter of fiscal year 2014. For the first quarter, Dolby reported total revenue of $231.3 million, compared to $236.6 million for the first quarter of fiscal year 2013.
First quarter GAAP net income was $44.5 million, or $0.43 per diluted share, compared to $51.3 million, or $0.50 per diluted share, for the first quarter of fiscal 2013. On a non-GAAP basis, first quarter net income was $60.6 million, or $0.59 per diluted share, compared to $66.4 million, or $0.64 per diluted share, for the first quarter of fiscal 2013. Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
“We're pleased to report that 2014 is off to a strong start with first quarter revenues higher than originally projected and a great reception to the introduction of Dolby Vision at the Consumer Electronics Show,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We are excited about our pipeline of new offerings and are confident they will contribute to long term growth."
Dolby estimates that total revenue will range from $240 million to $250 million. Gross margin percentages are projected to range between approximately 90%—91% on a GAAP basis and between 91%—92% on a non-GAAP basis.
Dolby anticipates that operating expenses will be between approximately $153 million and $156 million on a GAAP basis and between $135 million and $138 million on a non-GAAP basis.
Dolby expects diluted earnings per share to be between $0.45 and $0.52 on a GAAP basis and between $0.59 and $0.66 on a non-GAAP basis.
The Company estimates that its fiscal Q2 2014 effective tax rate will be between approximately 27% and 28% on both a GAAP and non-GAAP basis.
FISCAL YEAR 2014
Dolby anticipates that total revenue will range from $910 million to $940 million.
Dolby anticipates that operating expenses will be between approximately $600 million and $605 million on a GAAP basis and between $525 million and $530 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 2014 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, January 23, 2014.
Access to the teleconference will be available over the Internet from http://investor.dolby.com/medialist.cfm or by dialing 1-800-829-9048. International callers can access the conference call at 1-913-312-0845.
A replay of the call will be available from 5:00 p.m. PT on Thursday, January 23, 2014, until 9:00 p.m. PT on Thursday, January 30, 2014, by dialing 1-877-870-5176 (international callers can access the replay by dialing 1-858-384-5517) and entering the confirmation code 6389555. An archived version of the teleconference will also be available on the Dolby Laboratories website, www.dolby.com.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby provides certain non-GAAP financial measures. These measures are adjusted to exclude amounts related to stock-based compensation, expense associated with dividend equivalents paid on restricted stock units, the amortization of intangibles from business combinations, restructuring charges, and the related tax impact of these items. Dolby presents 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 both GAAP and non-GAAP measures 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 non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses 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 filings with the US Securities and Exchange Commission (SEC). 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 the second quarter of 2014 and fiscal year 2014 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; the loss of, or reduction in sales by, a key customer or licensee; 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 a 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, including trends in consumer spending; risks relating to the expiration of patents; the timing of Dolby's receipt of royalty reports and 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; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's SEC 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) creates audio, video, and voice technologies that transform entertainment and communications in mobile devices, at the cinema, at home, and at work. For nearly 50 years, sight and sound experiences have become more vibrant, clear, and meaningful in Dolby®. For more information, please visit www.dolby.com.
Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. Blu-ray Disc is a trademark of the Blu-ray Disc Association. Windows is a registered trademark of Microsoft Corporation. S14/27709 DLB-F
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
|Fiscal Quarter Ended|
|December 27,||December 28,|
|Cost of revenue:|
|Cost of licensing||4,001||3,080|
|Cost of products||13,788||18,489|
|Cost of services||3,593||4,036|
|Total cost of revenue||21,382||25,605|
|Research and development||44,463||42,436|
|Sales and marketing||60,379||58,421|
|General and administrative||41,908||43,108|
|Total operating expenses||149,965||143,965|
|Other income, net||229||713|
|Income before income taxes||60,701||69,059|
|Provision for income taxes||(15,455||)||(17,582||)|
|Net income including controlling interest||45,246||51,477|
|Less: net (income) attributable to controlling interest||(731||)||(128||)|
|Net income attributable to Dolby Laboratories, Inc.||$||44,515||$||51,349|
|Net income per share:|
|Weighted-average shares outstanding:|
DOLBY LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
|December 27,||September 27,|
|Cash and cash equivalents||$||484,640||$||454,397|
|Accounts receivable, net||75,949||97,460|
|Prepaid expenses and other current assets||25,584||28,949|
|Total current assets||858,811||818,579|
|Property, plant and equipment, net||243,712||242,917|
|Intangible assets, net||37,996||41,315|
|Other non-current assets||11,063||11,638|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Income taxes payable||2,412||3,394|
|Total current liabilities||150,031||172,815|
|Long-term deferred revenue||19,532||19,663|
|Other non-current liabilities||46,292||45,441|
|Class A common stock||49||47|
|Class B common stock||54||55|
|Additional paid-in capital||23,594||18,812|
|Accumulated other comprehensive income||7,385||7,814|
|Total stockholders’ equity – Dolby Laboratories, Inc.||1,529,979||1,481,110|
|Total stockholders’ equity||1,549,770||1,500,026|
|Total liabilities and stockholders’ equity||$||1,765,625||$||1,737,945|
|DOLBY LABORATORIES, INC.|
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Fiscal Quarter Ended|
|December 27,||December 28,|
|Net income including controlling interest||$||45,246||$||51,477|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Depreciation and amortization||12,409||13,129|
|Amortization of premium on investments||2,266||3,794|
|Excess tax benefit from exercise of stock options||(1,010||)||(469||)|
|Provision for doubtful accounts||374||(179||)|
|Deferred income taxes||
|Other non-cash items affecting net income||105||(691||)|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||
|Accounts payable and other liabilities||
|Income taxes, net||
|Other non-current liabilities||1,404||1,012|
|Net cash provided by operating activities||
|Purchases of available-for-sale securities||(102,717||)||(204,135||)|
|Proceeds from sales of available-for-sale securities||27,426||389,068|
|Proceeds from maturities of available-for-sale securities||46,739||51,325|
|Purchases of property, plant and equipment||(8,967||)||(6,717||)|
|Purchases of intangible assets||—||(4,048||)|
|Proceeds from sale of property, plant and equipment and assets held for sale||42||19|
|Change in restricted cash||
|Net cash provided by/(used in) investing activities||
|Proceeds from issuance of common stock||8,127||4,502|
|Repurchase of common stock||(11,660||)||(53,956||)|
|Payment of cash dividend||—||(408,206||)|
|Distribution to controlling interest||—||(5,039||)|
|Excess tax benefit from the exercise of stock options||1,010||469|
|Shares repurchased for tax withholdings on vesting of restricted stock||(6,727||)||(3,636||)|
|Net cash used in financing activities||(9,250||)||(465,866||)|
|Effect of foreign exchange rate changes on cash and cash equivalents||
|Net increase/(decrease) in cash and cash equivalents||30,243||(176,407||)|
|Cash and cash equivalents at beginning of period||454,397||492,600|
|Cash and cash equivalents at end of period||$||484,640||$||316,193|
|Cash paid for income taxes, net of refunds received||$||11,593||$||11,734|
|Cash paid for interest||$||1||$||1|
|GAAP to Non-GAAP Reconciliations|
|(In millions, except per share data)|
|The following tables present the Company's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the first quarter of fiscal 2014 and 2013:|
|Net income:||Fiscal Quarter Ended|
|December 27,||December 28,|
|GAAP net income||$||44.5||$||51.3|
|RSU dividend equivalent||0.8||—|
|Amortization of acquired intangibles||2.8||3.4|
|Restructuring charges, net||3.2||—|
|Income tax adjustments||(5.8||)||(6.0||)|
|Non-GAAP net income||$||60.6||$||66.4|
|Diluted earnings per share:||Fiscal Quarter Ended|
|December 27,||December 28,|
GAAP diluted earnings per share
|RSU dividend equivalent||0.01||—|
|Amortization of acquired intangibles||0.03||0.03|
|Restructuring charges, net||0.03||—|
|Income tax adjustments||(0.06||)||(0.06||)|
|Non-GAAP diluted earnings per share||$||0.59||$||0.64|
|Shares used in computing diluted earnings per share (in millions)||103||104|
|The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the second quarter of fiscal 2014 and fiscal year 2014 included in this release:|
|Gross margin:||Q2 2014|
|GAAP gross margin (low - high end of range)||
90 - 91
|Amortization of acquired intangibles||0.8||%|
|Non-GAAP gross margin (low - high end of range)||
91 - 92
|Operating expenses:||Q2 2014||Fiscal 2014|
|GAAP operating expenses (low - high end of range)||$||153 - $156||$||600 - $605|
|RSU dividend equivalent||(1||)||(3||)|
|Amortization of acquired intangibles||(1||)||(4||)|
|Restructuring charges, net||—||(3||)|
|Non-GAAP operating expenses (low - high end of range)||$||135 - $138||$||525 - $530|
|Diluted earnings per share:||Q2 2014|
|GAAP diluted earnings per share||$||0.45||$||0.52|
|RSU dividend equivalent||0.01||0.01|
|Amortization of acquired intangibles||0.02||0.02|
|Income tax adjustments||(0.05||)||(0.05||)|
|Non-GAAP diluted earnings per share||$||0.59||$||0.66|
|Shares used in computing diluted earnings per share (in millions)||103||103|
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 2, 2015 12:00 PM EDT Reads: 324
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Aug. 2, 2015 11:45 AM EDT Reads: 471
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Aug. 2, 2015 11:15 AM EDT Reads: 344
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 2, 2015 11:00 AM EDT Reads: 152
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Aug. 2, 2015 09:00 AM EDT Reads: 1,695
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 2, 2015 08:15 AM EDT Reads: 171
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 2, 2015 07:00 AM EDT Reads: 174
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 1, 2015 09:00 PM EDT Reads: 669
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 1, 2015 04:45 PM EDT Reads: 496
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 1, 2015 03:00 PM EDT Reads: 528
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 1, 2015 11:15 AM EDT Reads: 191
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 1, 2015 10:30 AM EDT Reads: 222
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 331
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Aug. 1, 2015 09:45 AM EDT Reads: 197
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 1, 2015 09:45 AM EDT Reads: 401