Dolby Labs spending $350m to buy back shares
August 5, 2019
By Chris Forrester
San Francisco-based Dolby Labs is to spend an extra $350 million (€312.7m) to buy back shares for cancellation. This takes the total amount to be spent on repurchases this financial year to $415 million.
CEO Kevin Yeaman told investors that its Q3 total revenues were $302.2 million ($214.8 million last year). Licensing and royalty income made up the bulk ($272 million) while the sale of products and services were about $30 million. Broadcast-related licensing brought in 49 per cent of the total and were up 10 per cent on last year.
“It’s worth noting that Dolby Technologies are adopted in more TV models and set-top boxes now than they were a year-ago and of course that’s something we focus on to drive the ongoing revenue growth,” said Yeaman.
However, Mobile-related licensing (17 per cent of total) had risen 140 per cent. Consumer electronics represented about 11 per cent of revenues.
The company generated about $90 million in cash, and ended the quarter-year with “a little over $1 billion in cash and investments”.
Analysts were told that Dolby now anticipate the total revenue for the year will range from $1.23 billion to $1.25 billion. Within that total, Dolby estimates that licensing will range from $1.10 billion to $1.11 billion, while products and services are estimated to range from $130 million to $140 million.