Dolby Laboratories, Inc. announced financial results for its fourth quarter and fiscal year ended September 24, 2010.
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Edited press release follows:
Dolby Laboratories Reports FY 2010 Fourth Quarter and Year-End Financial Results
SAN FRANCISCO–Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company’s financial results for the fourth quarter and fiscal year ended September 24, 2010.
For the fourth quarter, Dolby reported total revenue of $227.8 million, compared to $163.9 million for the fourth quarter of fiscal 2009.
Fourth quarter GAAP net income was $65.0 million, or $0.57 per diluted share, compared to $44.3 million, or $0.38 per diluted share, for the fourth quarter of fiscal 2009. On a non-GAAP basis, fourth quarter net income was $74.9 million, or $0.66 per diluted share, compared to $50.6 million, or $0.44 per diluted share, for the fourth quarter of fiscal 2009.
For the fiscal year, Dolby reported total revenue of $922.7 million, compared to $719.5 million for fiscal year 2009.
Fiscal year GAAP net income was $283.4 million, or $2.46 per diluted share, compared to $243.0 million, or $2.11 per diluted share, for fiscal year 2009. On a non-GAAP basis, fiscal year net income was $313.5 million, or $2.72 per diluted share, compared to $254.5 million, or $2.21 per diluted share for fiscal 2009. Dolby’s non-GAAP measures exclude expenses related to stock-based compensation, the amortization of intangibles from business combinations, restructuring charges, a gain from an amended patent licensing agreement, and the related tax impact of these items.
“I am pleased with our fourth quarter and fiscal year results,” said Kevin Yeaman, President and Chief Executive Officer, Dolby Laboratories. “We finished the year with record revenue and profitability while continuing to extend our multi-channel formats to the online ecosystem. Recently, Netflix and Sonic Solutions each announced that they would adopt Dolby Digital Plus to deliver multi-channel surround sound with movie and TV content.”
Guidance
For fiscal 2011, Dolby is targeting revenue of $950 million to $990 million, total gross margin of approximately 88 percent on a GAAP basis, and approximately 89 percent on a non-GAAP basis. In addition, Dolby is targeting fiscal 2011 operating expense of $411 million to $423 million on a GAAP basis and $360 million to $370 million on a non-GAAP basis, and a tax rate of approximately 33 percent on a GAAP basis and non-GAAP basis. Dolby’s non-GAAP targets exclude expenses related to stock based compensation, the amortization of intangibles from business combinations, restructuring charges, and the related tax impact of these items. While stock-based compensation expense may vary based on factors such as stock price or volatility, Dolby is targeting stock based compensation expense for fiscal 2011 to be approximately $45 to $47 million. In addition, Dolby is targeting charges related to the amortization of acquired intangibles for fiscal 2011 to be approximately $13 million.
These targets lead to a fiscal 2011 diluted earnings per share target range of $2.52 to $2.66 on a GAAP basis and $2.87 to $3.03 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’ Q4 and year-end fiscal 2010 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, November 4, 2010.
Access to the teleconference will be available over the Internet from http://investor.dolby.com/medialist.cfm or by dialing 1-888-452-4007. International callers can access the conference call at 1-719-325-2269.
A replay of the call will be available from 5:00 p.m. PT on Thursday, November 4, 2010, until 9:00 p.m. PT on November 11, 2010 by dialing 1-877-870-5176 (international callers can access the replay by dialing 1-858-384-5517) and entering the confirmation code 7947454. An archived version of the teleconference will also be available on www.dolby.com.
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, 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.