Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's
financial results for the second quarter of fiscal 2022. For the
second quarter, Dolby reported total revenue of $334.4 million,
compared to $319.6 million for the second quarter of fiscal 2021.
"We feel confident about our long term growth opportunities
despite near term headwinds," said Kevin Yeaman, President and CEO,
Dolby Laboratories. "Our partners continue to enable a growing
number of Dolby Vision and Dolby Atmos experiences through content
and devices, and we are expanding our business with new immersive
experiences through Dolby.io."
Second quarter GAAP net income was $36.7 million, or $0.36 per
diluted share, compared to GAAP net income of $76.2 million, or
$0.73 per diluted share, for the second quarter of fiscal 2021. On
a non-GAAP basis, second quarter net income was $94.0 million, or
$0.92 per diluted share, compared to $94.8 million, or $0.91 per
diluted share, for the second quarter of fiscal 2021. Second
quarter cash flows from operations was $63.0 million, compared to
$83.5 million for the second quarter of fiscal 2021. A complete
listing of Dolby's non-GAAP measures are described and reconciled
to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
- Vivo will now support the combined Dolby Vision and Dolby Atmos
experience in their new tablet.
- Disney Star will broadcast Indian Premier League cricket in
Dolby Atmos.
- Naver launched "Naver Shopping Live" with Dolby Vision, the
world’s first Dolby Vision-capable live commerce content.
- Popular mobile game PUBG Mobile is now available to play with
Dolby Atmos.
COVID-19
Dolby continues to monitor the COVID-19 pandemic and its impact
on our company. The safety and well-being of our employees and
supporting our communities continue to be priorities. Our revenue
continues to be impacted across various markets within licensing
and products and services. The implications of COVID-19 on our
future results of operations remain uncertain.
Dolby’s financial results for the second quarter of fiscal 2022
rely on estimates of royalty-based revenue that take into
consideration the macroeconomic effect of global events, including
COVID-19, supply chain constraints, and consumer demand for
electronic products. For more information, see the section
captioned "Risk Factors" in our Quarterly Report on Form 10-Q for
the second quarter of fiscal 2022, filed on or around the date
hereof.
Dividend
Today, Dolby announced a cash dividend of $0.25 per share of
Class A and Class B common stock, payable on May 25, 2022, to
stockholders of record as of the close of business on May 17,
2022.
Financial Outlook - Third Quarter and Full Year of
Fiscal 2022
Our actual results could differ materially from the estimates we
are providing due in part to the increased uncertainty from the
ongoing implications of the COVID-19 pandemic in Asia, particularly
the shutdowns in China, the geopolitical instability in Europe, and
continuing concerns around inflation and supply constraints
globally. The uncertainty resulting from these factors has greatly
reduced our visibility into our future outlook. To the extent
possible, the estimates we are providing for future periods reflect
certain assumptions about the potential impact of certain of these
items, based upon a consideration of currently available external
and internal data and information. These assumptions are subject to
risks and uncertainties. For more information, see "Forward-Looking
Statements" in this press release for a description of certain
risks that we face, and the section captioned "Risk Factors" in our
Quarterly Report on Form 10-Q for the second quarter of fiscal
2022, filed on or around the date hereof.
Third Quarter of Fiscal 2022
Dolby is providing the following estimates for its third quarter
of fiscal 2022:
- Total revenue is estimated to range from $285 million to $310
million.
- Gross margin percentages are anticipated to range from 88.5% to
89.5% on a GAAP basis and from 89% to 90% on a non-GAAP basis.
- Operating expenses are anticipated to range from $214 million
to $224 million on a GAAP basis and from $185 million to $195
million on a non-GAAP basis.
- Effective tax rate is anticipated to range from 19% to 20% on a
GAAP basis and 18% to 19% on a non-GAAP basis.
- Diluted earnings per share is anticipated to range from $0.28
to $0.43 on a GAAP basis and from $0.54 to $0.69 on a non-GAAP
basis.
Full Year Fiscal 2022
Dolby is also providing the following estimates for its full
year fiscal 2022:
- Total revenue is estimated to range from $1.30 billion to $1.35
billion.
- Operating expenses are anticipated to range from $905 million
to $925 million on a GAAP basis and from $745 million to $765
million on a non-GAAP basis.
- Operating margin percentages are anticipated to range from 19%
to 21% on a GAAP basis and from 32% to 34% on a non-GAAP
basis.
- Effective tax rate is anticipated to range from 16% to 18% on a
GAAP basis and 17% to 19% on a non-GAAP basis.
- Diluted earnings per share is anticipated to range from $1.98
to $2.48 on a GAAP basis and from $3.27 to $3.77 on a non-GAAP
basis.
Conference Call Information
Members of Dolby management will lead a conference call open to
all interested parties to discuss second quarter fiscal 2022
financial results for Dolby Laboratories at 1:30 p.m. PT (4:30 p.m.
ET) on Thursday, May 5, 2022. Access to the teleconference
will be available at http://investor.dolby.com or by dialing
1-844-200-6205 (or dialing 1-929-526-1599 for international
callers) and entering confirmation code 540172.
A replay of the call will be available from 4:30 p.m. PT (7:30
p.m. ET) on Thursday, May 5, 2022, until 10:30 p.m. PT on
Thursday, May 12, 2022 (1:30 a.m. ET on Friday, May 13, 2022), by
dialing 1-866-813-9403 (international callers can access the replay
by dialing +44-204-525-0658) and entering the confirmation code
703673. An archived version of the teleconference will also be
available on the Dolby website, http://investor.dolby.com.
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP
basis, Dolby provides certain non-GAAP financial measures to
provide investors with an additional tool to evaluate Dolby's
operating results in a manner that focuses on what Dolby's
management believes to be its ongoing business operations.
Specifically, we exclude the following as adjustments from one or
more of our non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation,
unlike cash-based compensation, utilizes subjective assumptions in
the methodologies used to value the various stock-based award types
that we grant. These assumptions may differ from those used by
other companies. To facilitate more meaningful comparisons between
our underlying operating results and those of other companies, we
exclude stock-based compensation expense.
Amortization of acquisition-related intangibles: We amortize
intangible assets acquired in connection with acquisitions. These
intangible assets consist of patents and technology, customer
relationships, and other intangibles. We record amortization
charges relating to these intangible assets in our GAAP financial
statements, and we view these charges as items arising from
pre-acquisition activities that are determined by the timing and
valuation of our acquisitions. As these amortization charges do not
directly correlate to our operations during any particular period,
and often remain unchanged between reporting periods, we exclude
these charges to facilitate an evaluation of our current operating
results and comparisons to our past operating performance.
Restructuring charges: Restructuring charges are costs
associated with restructuring plans and primarily relate to costs
associated with exit or disposal activities, employee severance
benefits, and asset impairments. We exclude restructuring costs,
including any adjustments to charges recorded in prior periods, as
we believe that these costs are not representative of our normal
operating activities and therefore, excluding these amounts enables
a more effective comparison to our past operating performance.
Income tax adjustments: We believe that excluding the income tax
effect of the aforementioned non-GAAP adjustments provides a more
accurate view of our underlying operating results to management and
investors.
Other operating income adjustments: In the second quarter of
fiscal 2022, we recorded an expense of $34.4 million related
to a one-time settlement and accrual in connection with
indemnification requests under commercial agreements that we
assumed in an acquisition in 2014 related to our Cinema products
business. We expect this settlement and related accrual to fully
resolve this matter. Also, in the first quarter of fiscal 2021, we
recorded a one-time gain on the sale of property, which was
previously classified as held for sale. The property was 51% owned
by the controlling interest, therefore 51% of the gain recognized
has been attributed to the controlling interest. We have excluded
both of these items as they are unusual, non-recurring events that
are not representative of our normal operating activities and
therefore, excluding these amounts enables a more effective
comparison to our past operating performance.
Using the aforementioned adjustments, Dolby provides various
non-GAAP financial measures including, but not limited to: non-GAAP
net income, non-GAAP diluted earnings per share, non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP operating margin, and
non-GAAP effective tax rate. Dolby's management believes it is
useful for itself and investors to review both GAAP and non-GAAP
measures to assess the performance of Dolby's business. Dolby's
management does not itself, nor does it suggest that investors
should, consider non-GAAP financial measures in isolation from, or
as a substitute for, financial information prepared in accordance
with GAAP. Whenever Dolby uses non-GAAP financial measures, it
provides a reconciliation of the non-GAAP financial measures to the
most closely applicable GAAP financial measures. Investors are
encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures as detailed above.
Investors are also encouraged to review Dolby's GAAP financial
statements as reported in its US Securities and Exchange Commission
(SEC) filings. A reconciliation between GAAP and non-GAAP financial
measures is provided at the end of this press release and on the
Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release, including, but not
limited to, statements relating to Dolby's expected financial
results for the third quarter of fiscal 2022 and full year fiscal
2022, our ability to advance our long-term objectives, and future
dividend payments are "forward-looking statements" that are subject
to risks and uncertainties. These forward-looking statements are
based on management's current expectations, and as a result of
certain risks and uncertainties, actual results may differ
materially from those provided. The following important factors,
without limitation, could cause actual results to differ materially
from those in the forward-looking statements: the potential impacts
of COVID-19 on Dolby’s business operations, financial results, and
financial position (including the impact to Dolby partners and
disruption of the supply chain and delays in shipments of consumer
products; consumer demand for products that incorporate Dolby
technologies; delays in the development and release of new products
or services that contain Dolby technologies; delays in royalty
reporting or delinquent payment by partners or licensees; the
impact to the overall cinema market, including closures or
limitations of cinema capacity and resulting adverse impact to
Dolby’s revenue recognized on box-office sales and demand for
cinema products and services; temporary Dolby office closures and
other actions to protect Dolby’s workforce; and macroeconomic
conditions that affect discretionary spending and access to
products that contain Dolby technologies); risks associated with
geopolitical issues, such as the conflict between Russia and
Ukraine; risks associated with trends in the markets in which Dolby
operates, including the Broadcast, Mobile, Consumer Electronics,
PC, Cinema, Developer Platform Services, and Other Markets; the
loss of, or reduction in sales by, a key customer, partner, or
licensee; pricing pressures; risks that the continued shift in
content distribution from optical disc-based and other traditional
media to online and streaming media content could result in fewer
devices with Dolby technologies or less revenue from such devices;
risks relating to conducting business internationally, including
trade restrictions and changes in diplomatic or trade
relationships; risks relating to the expiration of patents; the
timing of Dolby's receipt of royalty reports and payments from its
licensees, including recoveries; changes in tax regulations; timing
of revenue recognition under licensing agreements and other
contractual arrangements; Dolby's ability to develop, maintain, and
strengthen relationships with industry participants; Dolby's
ability to develop and deliver innovative technologies in response
to new and growing markets; competitive risks; risks associated
with conducting business in China and other countries that have
historically limited recognition and enforcement of intellectual
property and contractual rights; risks associated with the health
of the motion picture industry generally; Dolby's ability to
increase its revenue streams and to expand its business generally,
and to continue to expand its business beyond its current
technology offerings; risks associated with acquiring and
successfully integrating businesses or technologies; and other
risks detailed in Dolby's SEC filings and reports, including the
risks identified under the section captioned "Risk Factors" in our
most recent quarterly report on Form 10-Q. Dolby disclaims any
obligation to update information contained in these forward-looking
statements whether as a result of new information, future events,
or otherwise.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is based in San
Francisco, California with offices around the globe. From movies
and TV shows, to apps, music, sports and gaming, Dolby transforms
the science of sight and sound into spectacular experiences for
billions of people worldwide. We partner with artists,
storytellers, developers, and businesses to revolutionize
entertainment and communications with Dolby Atmos,
Dolby Vision, Dolby Cinema, and Dolby.io.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and
the double-D symbol are among the registered and unregistered
trademarks of Dolby Laboratories, Inc. in the United States and/or
other countries. Other trademarks remain the property of their
respective owners. DLB-F
DOLBY LABORATORIES, INC.INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except
per share amounts; unaudited) |
|
|
Fiscal Quarter Ended |
|
Fiscal Year-To-Date Ended |
|
April 1,2022 |
March 26,2021 |
|
April 1,2022 |
March 26,2021 |
Revenue: |
|
|
|
|
|
Licensing |
$ |
313,833 |
|
$ |
303,585 |
|
|
$ |
646,117 |
|
$ |
676,590 |
|
Products and services |
|
20,538 |
|
|
15,973 |
|
|
|
39,887 |
|
|
32,842 |
|
Total revenue |
|
334,371 |
|
|
319,558 |
|
|
|
686,004 |
|
|
709,432 |
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
Cost of licensing |
|
16,672 |
|
|
16,060 |
|
|
|
31,607 |
|
|
29,006 |
|
Cost of products and services |
|
18,843 |
|
|
16,318 |
|
|
|
36,617 |
|
|
38,676 |
|
Total cost of revenue |
|
35,515 |
|
|
32,378 |
|
|
|
68,224 |
|
|
67,682 |
|
|
|
|
|
|
|
Gross
margin |
|
298,856 |
|
|
287,180 |
|
|
|
617,780 |
|
|
641,750 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Research and development |
|
67,421 |
|
|
65,808 |
|
|
|
136,245 |
|
|
129,580 |
|
Sales and marketing |
|
84,230 |
|
|
78,046 |
|
|
|
181,400 |
|
|
153,491 |
|
General and administrative |
|
98,693 |
|
|
59,398 |
|
|
|
161,137 |
|
|
113,852 |
|
Gain on sale of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
(13,871 |
) |
Restructuring charges |
|
5,162 |
|
|
741 |
|
|
|
5,067 |
|
|
10,764 |
|
Total operating expenses |
|
255,506 |
|
|
203,993 |
|
|
|
483,849 |
|
|
393,816 |
|
|
|
|
|
|
|
Operating
income |
|
43,350 |
|
|
83,187 |
|
|
|
133,931 |
|
|
247,934 |
|
|
|
|
|
|
|
Other
income/(expense): |
|
|
|
|
|
Interest income |
|
1,098 |
|
|
962 |
|
|
|
1,814 |
|
|
1,936 |
|
Interest expense |
|
(87 |
) |
|
(167 |
) |
|
|
(171 |
) |
|
(252 |
) |
Other income/(expense), net |
|
(910 |
) |
|
1,385 |
|
|
|
(681 |
) |
|
2,711 |
|
Total other income |
|
101 |
|
|
2,180 |
|
|
|
962 |
|
|
4,395 |
|
|
|
|
|
|
|
Income before income
taxes |
|
43,451 |
|
|
85,367 |
|
|
|
134,893 |
|
|
252,329 |
|
Provision for income taxes |
|
(6,932 |
) |
|
(9,022 |
) |
|
|
(18,364 |
) |
|
(33,294 |
) |
Net income including
controlling interest |
|
36,519 |
|
|
76,345 |
|
|
|
116,529 |
|
|
219,035 |
|
Less: net (income)/loss attributable to controlling interest |
|
201 |
|
|
(128 |
) |
|
|
205 |
|
|
(7,620 |
) |
Net income
attributable to Dolby Laboratories, Inc. |
$ |
36,720 |
|
$ |
76,217 |
|
|
$ |
116,734 |
|
$ |
211,415 |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ |
0.36 |
|
$ |
0.75 |
|
|
$ |
1.15 |
|
$ |
2.09 |
|
Diluted |
$ |
0.36 |
|
$ |
0.73 |
|
|
$ |
1.13 |
|
$ |
2.02 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
Basic |
|
101,343 |
|
|
101,464 |
|
|
|
101,285 |
|
|
101,090 |
|
Diluted |
|
102,707 |
|
|
104,581 |
|
|
|
103,477 |
|
|
104,414 |
|
DOLBY LABORATORIES, INC.INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS(in thousands; unaudited) |
|
|
April 1,2022 |
September 24,2021 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
900,393 |
|
$ |
1,225,380 |
|
Restricted cash |
|
8,445 |
|
|
7,652 |
|
Short-term investments |
|
141,688 |
|
|
38,839 |
|
Accounts receivable, net |
|
227,263 |
|
|
232,609 |
|
Contract assets, net |
|
258,846 |
|
|
182,316 |
|
Inventories, net |
|
16,623 |
|
|
10,965 |
|
Prepaid expenses and other current assets |
|
68,312 |
|
|
62,737 |
|
Total current assets |
|
1,621,570 |
|
|
1,760,498 |
|
Long-term investments |
|
124,142 |
|
|
62,819 |
|
Property, plant and equipment, net |
|
527,623 |
|
|
534,381 |
|
Operating lease right-of-use assets |
|
58,934 |
|
|
67,128 |
|
Goodwill and intangible assets, net |
|
498,019 |
|
|
463,584 |
|
Deferred taxes |
|
175,238 |
|
|
156,020 |
|
Other non-current assets |
|
57,464 |
|
|
61,257 |
|
Total
assets |
$ |
3,062,990 |
|
$ |
3,105,687 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ |
11,373 |
|
$ |
17,779 |
|
Accrued liabilities |
|
228,545 |
|
|
262,728 |
|
Income taxes payable |
|
3,519 |
|
|
1,334 |
|
Contract liabilities |
|
22,109 |
|
|
18,473 |
|
Operating lease liabilities |
|
15,413 |
|
|
15,403 |
|
Total current liabilities |
|
280,959 |
|
|
315,717 |
|
Non-current contract liabilities |
|
24,569 |
|
|
23,713 |
|
Non-current operating lease liabilities |
|
48,191 |
|
|
56,715 |
|
Other non-current liabilities |
|
104,083 |
|
|
105,310 |
|
Total liabilities |
|
457,802 |
|
|
501,455 |
|
|
|
|
Stockholders’ equity: |
|
|
Class A common stock |
|
58 |
|
|
59 |
|
Class B common stock |
|
41 |
|
|
41 |
|
Retained earnings |
|
2,615,354 |
|
|
2,607,909 |
|
Accumulated other comprehensive loss |
|
(15,681 |
) |
|
(10,030 |
) |
Total stockholders’ equity –
Dolby Laboratories, Inc. |
|
2,599,772 |
|
|
2,597,979 |
|
Controlling interest |
|
5,416 |
|
|
6,253 |
|
Total stockholders’
equity |
|
2,605,188 |
|
|
2,604,232 |
|
Total liabilities and
stockholders’ equity |
$ |
3,062,990 |
|
$ |
3,105,687 |
|
|
|
|
|
|
|
|
DOLBY LABORATORIES, INC.INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands;
unaudited) |
|
|
Fiscal Year-To-Date Ended |
|
April 1,2022 |
March 26,2021 |
Operating
activities: |
|
|
Net income including controlling interest |
$ |
116,529 |
|
$ |
219,035 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
Depreciation and amortization |
|
45,832 |
|
|
47,399 |
|
Stock-based compensation |
|
60,355 |
|
|
50,726 |
|
Amortization of operating lease right-of-use assets |
|
7,953 |
|
|
8,538 |
|
Amortization of premium on investments |
|
673 |
|
|
697 |
|
Provision for/(benefit from) credit losses |
|
2,333 |
|
|
(65 |
) |
Deferred income taxes |
|
(19,363 |
) |
|
(16,992 |
) |
Gain on sale of assets |
|
— |
|
|
(13,871 |
) |
Other non-cash items affecting net income |
|
560 |
|
|
(1,847 |
) |
Changes in operating assets and liabilities: |
|
|
Accounts receivable, net |
|
3,498 |
|
|
(102,791 |
) |
Contract assets, net |
|
(76,447 |
) |
|
(72,197 |
) |
Inventories |
|
(5,045 |
) |
|
10,398 |
|
Operating lease right-of-use assets |
|
(265 |
) |
|
(1,729 |
) |
Prepaid expenses and other assets |
|
(1,683 |
) |
|
10,552 |
|
Accounts payable and accrued liabilities |
|
(37,472 |
) |
|
26,926 |
|
Income taxes, net |
|
5,117 |
|
|
9,982 |
|
Contract liabilities |
|
4,364 |
|
|
3,589 |
|
Operating lease liabilities |
|
(7,924 |
) |
|
(6,987 |
) |
Other non-current liabilities |
|
(4,356 |
) |
|
(5,735 |
) |
Net cash provided by operating
activities |
|
94,659 |
|
|
165,628 |
|
|
|
|
Investing
activities: |
|
|
Purchases of marketable securities |
|
(201,231 |
) |
|
(26,449 |
) |
Proceeds from sales of marketable securities |
|
5,107 |
|
|
4,594 |
|
Proceeds from maturities of marketable securities |
|
29,055 |
|
|
18,620 |
|
Return of investment from equity method investees |
|
826 |
|
|
— |
|
Purchases of property, plant, and equipment |
|
(26,053 |
) |
|
(28,887 |
) |
Proceeds from sale of assets |
|
— |
|
|
16,365 |
|
Payments for business combinations, net of cash acquired |
|
(38,228 |
) |
|
— |
|
Purchases of intangible assets |
|
(11,528 |
) |
|
— |
|
Purchases of other investments |
|
(5,000 |
) |
|
— |
|
Net cash used in investing
activities |
|
(247,052 |
) |
|
(15,757 |
) |
|
|
|
Financing
activities: |
|
|
Proceeds from issuance of common stock |
|
35,062 |
|
|
71,157 |
|
Repurchase of common stock |
|
(120,486 |
) |
|
(110,775 |
) |
Payment of cash dividend |
|
(50,681 |
) |
|
(44,574 |
) |
Distribution to controlling interest |
|
(1,435 |
) |
|
(7,362 |
) |
Shares repurchased for tax withholdings on vesting of restricted
stock |
|
(32,720 |
) |
|
(29,216 |
) |
Net cash used in financing
activities |
|
(170,260 |
) |
|
(120,770 |
) |
|
|
|
Effect of foreign exchange rate changes on cash, cash equivalents,
and restricted cash |
|
(1,541 |
) |
|
4,416 |
|
Net increase/(decrease) in
cash, cash equivalents, and restricted cash |
|
(324,194 |
) |
|
33,517 |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
1,233,032 |
|
|
1,079,979 |
|
Cash, cash equivalents, and
restricted cash at end of period |
$ |
908,838 |
|
$ |
1,113,496 |
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliations |
(in millions, except per share data; unaudited) |
|
|
|
|
|
|
|
The following
tables present Dolby's GAAP financial measures reconciled to the
non-GAAP financial measures included in this release for the second
quarter and year-to-date period ended April 1, 2022 and March 26,
2021: |
|
|
|
|
|
|
|
Net
income: |
|
Fiscal Quarter Ended |
|
Fiscal Year-To-Date Ended |
|
|
April 1,2022 |
March 26,2021 |
|
April 1,2022 |
March 26,2021 |
GAAP net income |
|
$ |
36.7 |
|
$ |
76.2 |
|
|
$ |
116.7 |
|
$ |
211.4 |
|
Stock-based
compensation(1) |
|
|
27.7 |
|
|
24.4 |
|
|
|
60.4 |
|
|
50.7 |
|
Amortization of
acquisition-related intangibles(2) |
|
|
2.7 |
|
|
2.5 |
|
|
|
5.5 |
|
|
5.0 |
|
Other operating income
adjustments |
|
|
34.4 |
|
|
— |
|
|
|
34.4 |
|
|
(6.8 |
) |
Restructuring charges |
|
|
5.2 |
|
|
0.8 |
|
|
|
5.1 |
|
|
10.8 |
|
Income tax adjustments |
|
|
(12.7 |
) |
|
(9.1 |
) |
|
|
(23.6 |
) |
|
(23.0 |
) |
Non-GAAP net income |
|
$ |
94.0 |
|
$ |
94.8 |
|
|
$ |
198.5 |
|
$ |
248.1 |
|
|
|
|
|
|
|
|
(1) Stock-based compensation
included in above line items: |
|
|
|
|
|
|
Cost of products and services |
|
$ |
0.3 |
|
$ |
0.5 |
|
|
$ |
0.9 |
|
$ |
1.1 |
|
Research and development |
|
|
9.2 |
|
|
7.2 |
|
|
|
19.3 |
|
|
15.1 |
|
Sales and marketing |
|
|
9.8 |
|
|
9.1 |
|
|
|
22.1 |
|
|
18.9 |
|
General and administrative |
|
|
8.4 |
|
|
7.6 |
|
|
|
18.1 |
|
|
15.6 |
|
|
|
|
|
|
|
|
(2) Amortization of
acquisition-related intangibles included in above line items: |
|
|
|
|
|
|
Cost of licensing |
|
$ |
0.6 |
|
$ |
0.7 |
|
|
$ |
1.3 |
|
$ |
1.4 |
|
Cost of products and services |
|
|
0.6 |
|
|
0.9 |
|
|
|
1.5 |
|
|
1.8 |
|
Research and development |
|
|
0.1 |
|
|
0.1 |
|
|
|
0.2 |
|
|
0.2 |
|
Sales and marketing |
|
|
1.1 |
|
|
0.8 |
|
|
|
2.2 |
|
|
1.6 |
|
General and administrative |
|
|
0.3 |
|
|
— |
|
|
|
0.3 |
|
|
— |
|
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
Fiscal Quarter Ended |
|
Fiscal Year-To-Date Ended |
|
|
April 1,2022 |
March 26,2021 |
|
April 1,2022 |
March 26,2021 |
GAAP diluted earnings per share |
|
$ |
0.36 |
|
$ |
0.73 |
|
|
$ |
1.13 |
|
$ |
2.02 |
|
Stock-based compensation |
|
|
0.27 |
|
|
0.24 |
|
|
|
0.58 |
|
|
0.49 |
|
Amortization of acquisition-related intangibles |
|
|
0.03 |
|
|
0.02 |
|
|
|
0.06 |
|
|
0.04 |
|
Other operating income adjustments |
|
|
0.33 |
|
|
— |
|
|
|
0.33 |
|
|
(0.06 |
) |
Restructuring charges |
|
|
0.05 |
|
|
0.01 |
|
|
|
0.04 |
|
|
0.11 |
|
Income tax adjustments |
|
|
(0.12 |
) |
|
(0.09 |
) |
|
|
(0.22 |
) |
|
(0.22 |
) |
Non-GAAP diluted earnings per share |
|
$ |
0.92 |
|
$ |
0.91 |
|
|
$ |
1.92 |
|
$ |
2.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share |
|
|
103 |
|
|
105 |
|
|
|
103 |
|
|
104 |
|
|
|
|
|
|
|
|
The following
tables present a reconciliation between GAAP and non-GAAP versions
of the estimated financial amounts for the third quarter of fiscal
2022 and fiscal 2022 included in this release: |
|
|
|
|
|
|
|
Gross
margin: |
|
|
|
|
|
Q3 2022 |
GAAP gross margin (low - high end of range) |
|
|
|
|
|
88.5% - 89.5% |
Stock-based compensation |
|
|
|
|
|
|
0.2 |
% |
Amortization of acquisition-related intangibles |
|
|
|
|
|
|
0.3 |
% |
Non-GAAP gross margin (low - high end of range) |
|
|
|
|
|
89% - 90% |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
Q3 2022 |
|
|
Fiscal 2022 |
GAAP operating expenses (low - high end of range) |
|
|
$214 - $224 |
|
|
$905 - $925 |
Stock-based compensation |
|
|
|
(28 |
) |
|
|
|
(117 |
) |
Amortization of acquisition-related intangibles |
|
|
|
(1 |
) |
|
|
|
(4 |
) |
Other operating income adjustments |
|
|
|
— |
|
|
|
|
(34 |
) |
Restructuring charges, net |
|
|
|
— |
|
|
|
|
(5 |
) |
Non-GAAP operating expenses (low - high end of range) |
|
|
$185 - $195 |
|
|
$745 - $765 |
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
Fiscal 2022 |
GAAP operating margin (low - high end of range) |
|
|
|
|
|
19% - 21% |
Stock-based compensation |
|
|
|
|
|
|
9 |
% |
Amortization of acquisition-related intangibles |
|
|
|
|
|
|
1 |
% |
Other operating income adjustments |
|
|
|
|
|
|
3 |
% |
Non-GAAP operating margin (low - high end of range) |
|
|
|
|
|
32% - 34% |
|
|
|
|
|
|
|
Effective tax
rate: |
|
|
Q3 2022 |
|
|
Fiscal 2022 |
GAAP effective tax rate (low -
high end of range) |
|
|
19% - 20% |
|
|
16% - 18% |
Stock-based compensation (low
- high end of range) |
|
|
2% - 3% |
|
|
2% - 5% |
Amortization of
acquisition-related intangibles (low - high end of range) |
|
|
(1%) - 0% |
|
|
(1%) - 1% |
Other (low - high end of
range) |
|
|
(1%) - 0% |
|
|
(1%) - 0% |
Non-GAAP effective tax rate
(low - high end of range) |
|
|
18% - 19% |
|
|
17% - 19% |
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
Q3 2022 |
|
Fiscal 2022 |
|
|
Low |
High |
|
Low |
High |
GAAP diluted earnings per share |
|
$ |
0.28 |
|
$ |
0.43 |
|
|
$ |
1.98 |
|
$ |
2.48 |
|
Stock-based compensation |
|
|
0.29 |
|
|
0.29 |
|
|
|
1.15 |
|
|
1.15 |
|
Amortization of acquisition-related intangibles |
|
|
0.02 |
|
|
0.02 |
|
|
|
0.08 |
|
|
0.08 |
|
Other operating income adjustments |
|
|
— |
|
|
— |
|
|
|
0.33 |
|
|
0.33 |
|
Restructuring charges, net |
|
|
— |
|
|
— |
|
|
|
0.05 |
|
|
0.05 |
|
Income tax adjustments |
|
|
(0.05 |
) |
|
(0.05 |
) |
|
|
(0.32 |
) |
|
(0.32 |
) |
Non-GAAP diluted earnings per share |
|
$ |
0.54 |
|
$ |
0.69 |
|
|
$ |
3.27 |
|
$ |
3.77 |
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share |
|
|
101 |
|
|
101 |
|
|
|
103 |
|
|
103 |
|
Investor Contact:Ashley SchwenohaDolby
Laboratories, Inc.415-645-5506investor@dolby.com
Media Contact:Karen HartquistDolby
Laboratories, Inc.415-505-8357karen.hartquist@dolby.com
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