Dolby Laboratories Q3 profit
rises; lifts FY08 outlook
August 5, 2008
Source: Dolby
Dolby Laboratories, Inc. announced the Company's
financial results for its third quarter of fiscal 2008.
For the third quarter, Dolby reported total revenue of $154.3
million, compared to $119.6 million for the third quarter
of fiscal 2007, an increase of 29 percent. Third quarter net
income was $46.4 million, or $0.40 per diluted share, compared
to $29.7 million, or $0.26 per diluted share, for the third
quarter of fiscal 2007.
Net income for the third quarter of fiscal 2008 reflects stock-based
compensation expense of $5.6 million compared to $5.1 million
for the third quarter of fiscal 2007. Net income for the third
quarter of fiscal 2008 also reflects charges related to the
amortization of intangibles of $3.0 million compared to $1.0
million for the third quarter of fiscal 2007.
"During the quarter, we experienced strong financial
results while continuing to make progress in key initiatives
such as PC Entertainment Experience and Dolby Mobile,"
said Bill Jasper, President and Chief Executive Officer, Dolby
Laboratories. "Earlier this week, LG, a global technology
and design leader in mobile communications, announced it would
introduce high-end multimedia handsets with Dolby Mobile by
the end of calendar year 2008."
Guidance
Dolby now expects fiscal 2008 revenue to be $605 million to
$625 million. Net income for fiscal 2008 is now expected to
be $181 million to $190 million. Earnings per diluted share
is now expected to be $1.57 to $1.65. While under FAS 123R,
stock-based compensation expense may vary based on factors
such as stock price or volatility, Dolby now expects stock-based
compensation expense for fiscal 2008 to be approximately $23
million. In addition, Dolby continues to expect charges related
to the amortization of intangibles for fiscal 2008 to be approximately
$13 million.
Excerpts from their conference call transcript regarding
DIGITAL CINEMA:
Turning to our Cinema initiative, we continue to believe the
transition to digital cinema will be an opportunity for digital
cinema and digital 3D products. Exhibitors are still committed
to digital cinema, especially with complementary digital 3D
technology helping to increase traffic and ticket prices.
Yet some industry challenges still remain, including the ongoing
negotiations between integrators and studios and the potential
difficulty for system integrators to obtain financing in the
current financial environment. It's still unclear how this
will play out, but as the industry works through these challenges
we believe we are well positioned to participate in the transition
to digital cinema.
In addition to our Digital Cinema server, we offer a 3D solution
based on reusable glasses. We believe our 3D technology provides
exhibitors a higher-quality 3D experience, lower average operating
cost, and a more environmentally friendly design. While we
have faced significant competition in the U.S. from alternative
3D technology solutions based on a disposable glasses model,
we believe the value proposition of our 3D solution is well
received by a number of exhibitors worldwide. Outside North
America, many exhibitors have embraced Dolby Digital 3D. We
remain focused on this market and look forward to keeping
you abreast of our progress.
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