Exhibit 99.1
Dolby Laboratories Reports FY 2007 First Quarter Results
First Quarter Net Income is $29.9 Million on Revenue of $104.4
Million
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 1, 2007--Dolby Laboratories,
Inc. (NYSE:DLB) today announced the Company's financial results for
the first quarter of fiscal year 2007.
For the first quarter, Dolby reported total revenue of $104.4
million, compared to $91.0 million for the first quarter of fiscal
2006, an increase of 15 percent. First quarter net income was $29.9
million, or $0.27 per diluted share, compared to $17.3 million, or
$0.16 per diluted share, for the first quarter of fiscal 2006.
Net income for the first quarter of fiscal 2007 reflected
stock-based compensation expense of $4.9 million compared to $5.1
million in the first quarter of fiscal 2006.
"With Dolby's recognized global brand, broad industry presence, and
solid business model, we entered fiscal 2007 in a strong position.
With the first quarter completed, I am encouraged by our continued
progress. We continue to extend our technologies throughout newer
markets, to drive the adoption of additional Dolby technologies, and
to innovate," said Bill Jasper, President and Chief Executive Officer,
Dolby Laboratories.
Guidance
For fiscal 2007, Dolby continues to expect revenue to be $420
million to $450 million. Net income is now expected to be $100 million
to $110 million. Consequently, earnings per diluted share are now
expected to be $0.88 to $0.96. While stock-based compensation expense
may vary based on factors such as stock price or volatility, Dolby
continues to expect stock-based compensation expense for the full year
to be $20 million to $22 million.
Conference Call Information
Members of Dolby management will lead a conference call open to
all interested parties to discuss Dolby's first quarter fiscal 2007
financial results at 2:00 p.m. PT/5:00 p.m. ET, Thursday, February 1,
2007.
Access to the teleconference will be available over the Internet
from http://investor.dolby.com/medialist.cfm or by dialing
800-289-0529. International callers can access the conference call at
913-981-5523.
A replay of the call will be available beginning at 5:00 p.m. PT
on February 1, 2007 until 9 p.m. PT on February 8, 2007, at
888-203-1112 (international callers can access the replay by dialing
719-457-0820) and entering confirmation code 9143132. An archived
version of the teleconference will also be available on Dolby's
website, www.dolby.com.
Forward Looking Statements
Certain statements in this press release, including statements
relating to Dolby's expectations regarding revenue, net income,
earnings per diluted share, and stock-based compensation expense for
the fiscal year ending September 28, 2007, and Dolby's expectations
concerning extending its technologies into newer markets, driving the
adoption of additional Dolby technologies, and continuing to innovate,
and the benefits, including long-term growth opportunities, that may
be derived therefrom 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 DVD
markets; pricing pressures; the development of the markets for PCs,
broadcast, gaming, automotive, and portable audio and video players
that incorporate Dolby's technologies; 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 Dolby's ability to successfully
penetrate this market; 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 and any subsequent Quarterly Reports
on Form 10-Q. 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) develops and delivers products and
technologies that make the entertainment experience more realistic and
immersive. For four decades, Dolby has been at the forefront of
defining high-quality audio and surround sound in cinema, broadcast,
home audio systems, cars, DVDs, headphones, games, televisions, and
personal computers. 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. S07/17915 DLB-F
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal Quarter Ended
-----------------------------
December 30, December 29,
2005 2006
-------------- --------------
(unaudited)
(in thousands, except per
share amounts)
Revenue:
Licensing $68,982 $82,375
Product sales 16,004 15,210
Services 6,039 6,857
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Total revenue 91,025 104,442
Cost of revenue:
Cost of licensing 6,601 7,660
Cost of product sales (1) 12,681 8,686
Cost of services (1) 2,889 2,683
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Total cost of revenue 22,171 19,029
Gross margin 68,854 85,413
Operating expenses:
Selling, general and administrative
(1) 36,537 37,311
Research and development (1) 7,942 8,836
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Total operating expenses 44,479 46,147
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Operating income 24,375 39,266
Other income, net 3,699 5,427
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Income before provision for income taxes
and controlling interest 28,074 44,693
Provision for income taxes 10,486 14,452
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Income before controlling interest 17,588 30,241
Controlling interest in net income (319) (348)
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Net income $17,269 $29,893
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Basic net income per share $0.17 $0.28
Diluted net income per share $0.16 $0.27
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Weighted-average shares outstanding
(basic) 104,295 107,947
Weighted-average shares outstanding
(diluted) 110,190 112,767
- ----------------------------------------------------------------------
(1) Stock-based compensation included in net income above was
classified as follows:
Cost of product sales $202 $218
Cost of services 130 37
Selling, general and administrative 4,104 3,859
Research and development 673 747
DOLBY LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
September 29, December 29,
2006 2006
-------------- --------------
(unaudited)
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $412,487 $409,265
Short-term investments 73,212 119,129
Accounts receivable, net 23,550 16,886
Inventories 11,104 11,585
Income tax receivable 1,371 1,586
Deferred income taxes 44,568 44,980
Prepaid expenses and other current
assets 6,340 8,358
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Total current assets 572,632 611,789
Property, plant and equipment, net 76,995 77,179
Intangible assets, net 14,954 14,426
Goodwill 23,188 24,331
Long-term investments 32,909 50,078
Long-term deferred income taxes 11,100 10,013
Other assets 7,510 7,797
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Total assets $739,288 $795,613
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $79,336 $81,130
Income taxes payable 5,719 6,336
Current portion of debt 1,441 1,483
Deferred revenue 6,358 7,559
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Total current liabilities 92,854 96,508
Long-term debt 10,893 10,697
Other non-current liabilities 21,342 21,661
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Total liabilities 125,089 128,866
Controlling interest 19,911 20,754
Stockholders' equity:
Class A common stock 37 39
Class B common stock 70 69
Additional paid-in capital 323,449 341,400
Retained earnings 266,918 296,811
Accumulated other comprehensive
income 3,814 7,674
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Total stockholders' equity 594,288 645,993
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Total liabilities and
stockholders' equity $739,288 $795,613
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CONTACT: Dolby Laboratories
Investor Contact:
Alex Hughes, 415-645-4572
investor@dolby.com
Media Contact:
Paula Dunn, 415-645-5000
news@dolby.com