Entertainment technology company Dolby Laboratories, Inc. (DLB) reported Tuesday a profit for the first quarter that declined from last year, hurt by a revenue drop amid lower product sales. However, adjusted earnings per share grew a penny and topped analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company also maintained its earnings and revenue outlook for the full-year 2012.
"In the first quarter, we grew licensing revenue year over year on the strength of our broadcast and mobile markets. We continue to enhance the entertainment experience in online content with the addition of services such as HBO Go, which recently announced the adoption of Dolby Digital Plus," President and CEO Kevin Yeaman said in a statement.
The San Francisco-based company, famous for high-quality audio and surround sound, reported net income of $73.16 million or $0.67 per share for the first quarter, lower than $86.39 million or $0.76 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $83.1 million or $0.76 per share, compared to $85.0 million or $0.75 per share in the year-ago quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.62 per share for the first quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter decreased to $233.38 million from $242.71 million in the same quarter last year, and missed twelve Wall Street analysts' consensus estimate of $234.41 million by a whisker.
Licensing revenues for the quarter increased to $199.62 million from $188.18 million, while products revenues dropped to $26.40 million from 46.03 million last year. Services revenues declined to $7.35 million from $8.51 million in the year-ago quarter.
Looking ahead to fiscal 2012, Dolby continues to anticipate adjusted earnings in a range of $2.71 to $3.02 per share, on projected revenues between $910 million and $970 million.
Street is currently looking for full-year 2012 earnings of $2.51 per share on annual revenues of $945.78 million.
DLB closed Tuesday's regular trading session at $36.37, up $0.25 or 0.69% on a volume of 0.81 million shares, higher than the three-month average volume of 0.78 million shares. However, the stock lost $0.37 or 1.02% in after-hours trading.
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