Dolby Laboratories Inc. (DLB: Quote) Tuesday reported a decline in profit for the first quarter, hurt mainly by higher expenses. Nevertheless, earnings and revenues for the quarter came in ahead of estimates.
Dolby, well known for its high-quality audio and surround sound technology, said revenues for the three-month period inched up to $236.6 million from to $234.2 million last year. Analysts estimated revenues of $220.98 million for the quarter.
Excluding special items, earnings for the quarter declined to $66.4 million or $0.64 per share from $83.1 million or $0.76 per share last year.
San Francisco, California-based Dolby's first-quarter profit dropped to $51.3 million or $0.50 per share from $73.2 million or $0.67 per share last year.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter.
Chief Executive Kevin Yeaman said, "We had a solid first quarter. More mobile devices than ever feature Dolby sound, and the rapidly growing number of movie titles in Dolby Atmos shows that the industry has embraced our new, more immersive cinema sound format."
Total operating costs rose to $144.0 million from $112.5 million last year.
Looking ahead to the second quarter, Dolby expects earnings of $0.53 to $0.60 per share, adjusted earnings of $0.68 to $0.75 per share, and revenues of $240 million to $250 million. Analysts currently expect earnings of $0.64 per share on revenues of $251.22 million for the second-quarter.
For full year 2013, Dolby anticipates revenues of $910 million to $950 million, compared to prior outlook of $900 million to $950 million. Analysts currently estimate revenues of $918.50 million for 2013.
DLB closed Tuesday's trading at $31.75, down $0.13 or 0.41%, on the NYSE. The stock gained $1.25 or 3.94% in after-hours trade.
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by RTT Staff Writer
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