Dolby Labs’ share price crash
January 23, 2015
Dolby Labs’ share price has crashed by as much as 11.4 per cent following the release this week of the company’s Q1 results. The fall was not expected given that the results exceeded most analysts’ forecasts. Actual quarterly revenue rose 1 per cent (y-o-y) but shareholders expected more. The day closed with a fall of 7.04 per cent, to $39.1 a share.
Dolby’s core Licensing business continued to perform well, with quarterly revenue growing around 5 per cent over the same year-ago period to $216.6 million. The backbone of that growth comes from its broadcasting segment with continued strong performance of Broadcast licensing, which grew 20 per cent over last year amid a continued migration to digital broadcast signals in emerging markets.
Dolby’s numbers were held back by lower sales from TV technology business DoReMi which Dolby acquired last year. Dolby reiterated guidance for full year 2015 revenue in the range of $970 million to $1 billion, which is in line with Wall Street’s expectations and indicates Dolby management doesn’t expect its top-line weakness to persist much longer.
January 22nd saw Ray Dolby, founder of Dolby Laboratories, receive a posthumous Hollywood Walk of Fame star, the 254th ‘star’ to be placed.