DTS Reports Second Quarter 2009 Results
Agoura Hills, Calif. — August 10, 2009 — DTS, Inc. (Nasdaq: DTSI) today announced its financial results for the second quarter ended June 30, 2009.
For the second quarter of 2009, DTS reported revenue of $24.2 million, and net income from continuing operations of $3.6 million, or $0.21 per diluted share. This compares to revenue of $12.8 million and net income from continuing operations of $1.4 million, or $0.07 per diluted share, reported in the second quarter of 2008. Excluding the settlement of litigation matters, adjusted revenues were in excess of $14 million for the second quarter of 2009. Second quarter 2009 results included $6.1 million in Zoran litigation expenses.
The second quarter of 2009 results included $1.4 million, or $0.5 per diluted share net of tax, in stock-based compensation expense and $225,000, or $0.01 per diluted share net of tax, in amortization of intangible assets associated with the Neural Audio business acquisition.
“Especially considering the difficult economic climate, we are pleased with our performance in the second quarter,” commented Jon Kirchner, president and CEO of DTS, Inc. “With the settlement of litigation matters with Zoran, we have taken another step forward in protecting consumers, our licensees, and our intellectual property, which we expect will contribute to the long-term growth of DTS’ business and the healthy development of the Blu-ray market.
“Also during the second quarter, we experienced encouraging activity in certain segments of the consumer electronics market, particularly those related to Blu-ray set-top products. With retail prices falling, content availability increasing and the pipeline of Blu-ray products growing, we are highly optimistic about our future.
“In light of recent recoveries and the settlement of litigation matters, we are adjusting our GAAP revenue outlook for 2009 to $76 to $79 million and expect GAAP EPS to be in the range of $0.57 to $0.62,” concluded Kirchner.
DTS closed the second quarter with cash, cash equivalents and short-term investments of $78.6 million, up $10.6 million for the year.
For the first six months of 2009, DTS reported revenue of $41.4 million, and income from continuing operations of $3.8 million, or $0.22 per diluted share. This compares to revenue of $28.0 million and income from continuing operations of $4.6 million, or $0.25 per diluted share, reported in the first six months of 2008. Results for the first six months of 2009 included $8.7 million in Zoran litigation expenses.
Conference Call Information
DTS will broadcast a conference call today, Monday, August 10, 2009, starting at 1:30 p.m. Pacific Time. To access the conference call, dial 877-941-2068 or 480-629-9712 (outside the U.S. and Canada). A live webcast of the call will be available from the Investor Relations section of the Company's corporate website at www.dts.com and via replay beginning two hours after the completion of the call. An audio replay of the call will also be available to investors beginning at 4:30 p.m. Pacific Time, August 10 through August 17, 2009, by dialing 800-406-7325 or 303-590-3030 (outside the U.S. and Canada) and entering pass code 4117499#.
About DTS
DTS, Inc. (NASDAQ: DTSI) is a digital technology company dedicated to delivering the ultimate entertainment experience. DTS decoders are in virtually every major brand of 5.1-channel surround processor, and there are hundreds of millions of DTS-licensed consumer electronics products available worldwide. A pioneer in multi-channel audio, DTS technology is in home theatre, car audio, PC and game console products, as well as DVD-Video, Blu-ray Disc and Surround Music software. Founded in 1993, DTS’ corporate headquarters are located in Agoura Hills, California with its licensing operations headquartered in Limerick, Ireland. DTS also has offices in Northern California, Washington, Canada, China, France, Hong Kong, Japan, South Korea, Taiwan and the United Kingdom. For further information, please visit www.dts.com. DTS is a registered trademark of DTS, Inc.
| Investor Contacts: | Press Contact: |
| | |
| Erica Abrams or Matthew Hunt | David Blasucci |
| The Blueshirt Group for DTS | Director of Marketing Communications |
| 415-217-7722 | DTS, Inc. |
| erica@blueshirtgroup.com | 818-827-2279 |
| matt@blueshirtgroup.com | david.blasucci@dts.com |
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause DTS’ results to differ materially from historical results or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “planned,” “expects,” “believes,” “strategy,” “opportunity,” “anticipates” and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or financial or operating performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to, the transition to the next generation optical drives and consumer adoption of such technology, the rapidly changing and competitive nature of the digital audio, consumer electronics and entertainment markets, the Company’s inclusion in or exclusion from governmental and industry standards, continued customer acceptance of the Company’s technology, products, services and pricing, risks related to ownership and enforcement of intellectual property, the continued release and availability of entertainment content containing DTS audio soundtracks, success of the Company’s research and development efforts, risks related to integrating acquisitions, greater than expected costs, the departure of key employees, the current financial crisis and global economic downturn, a loss of one or more of our key customers or licensees, changes in domestic and international market and political conditions, and other risks and uncertainties more fully described in DTS’ public filings with the Securities and Exchange Commission, available at www.sec.gov. DTS does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof.
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