Advanced Television

Dolby Labs posts record profits

November 18, 2011

By Chris Forrester

Dolby Labs, best known for its ‘noise reduction’ and Surround Sound products, has turned in record numbers for its Q4 and full year. Q4 net income was $79.1 million ($65m same period last year). Gross revenues for Q4 were $243.8 million (up from $227.8m). As a proportion of the above numbers Dolby’s licensing fees were up 15 per cent year-on-year, while overall broadcast revenues grew 29 per cent.

Fourth quarter revenue from its consumer electronics market was up 1 per cent year-over-year, as increases in Blu-ray and other CE products offset declines in DVD. Sequentially, revenue declined 7 per cent as an increase in Blu-ray was more than offset by a decline in other CE products.

“Full-year revenue from consumer electronics market made up 21 per cent of licensing revenue in fiscal 2011, compared to 22 per cent in fiscal 2010,” said CEO Kevin Yeaman. “Fourth quarter revenue from our consumer electronics market was up 1 per cent year-over-year, as increases in Blu-ray and other CE products offset declines in DVD. Sequentially, revenue declined 7 per cent as an increase in Blu-ray was more than offset by a decline in other CE products. Full-year revenue from consumer electronics market made up 21 per cent of licensing revenue in fiscal 2011, compared to 22 per cent in fiscal 2010,” he added.

Dolby’s full year revenues will be in the $910 million-$970 million range.  However, market sentiment was still not in favour.  Dolby closed Thursday’s regular trading session on the NYSE at $27.69, down $0.01 or 0.04 per cent. The stock further lost $0.06 or 0.20 per cent in after-hours trading.

Categories: Articles, Business, Results