Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's
financial results for the third quarter of fiscal 2023.
"We continue to transform the way people enjoy their content,"
said Kevin Yeaman, President and CEO, Dolby Laboratories. "We
remain focused on growing Dolby Atmos and Dolby Vision across our
movies and TV, music and user-generated content ecosystems."
Third Quarter Fiscal 2023 Financial
Highlights
- Total revenue was $298.4 million, compared to $289.6 million
for the third quarter of fiscal 2022.
- GAAP net income was $16.4 million, or $0.17 per diluted share,
compared to GAAP net income of $39.6 million, or $0.39 per diluted
share, for the third quarter of fiscal 2022. On a non-GAAP basis,
third quarter net income was $54.1 million, or $0.55 per diluted
share, compared to $68.7 million, or $0.68 per diluted share, for
the third quarter of fiscal 2022.
- Cash flow from operations was $121.1 million, compared to
$172.6 million for the third quarter of fiscal 2022.
- Dolby repurchased 0.3 million shares of its common stock and
ended the quarter with approximately $237 million of stock
repurchase authorization available going forward.
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
- Dolby Atmos Music is now available on WYNK Music in India.
- Max launched their top-tier service with Dolby Atmos and Dolby
Vision.
- Moj, a large social media platform in India, adopted Dolby
Vision.
- NIO and Lotus launched car models that support Dolby Atmos in
Europe.
- Sony Interactive Entertainment announced that the PS5 will
unlock support for compatible Dolby Atmos-enabled living room
devices.
- TCL announced they are expanding Dolby Vision and Dolby Atmos
on their regional TV models in India.
- Viddsee, a short-film video platform based in Singapore,
adopted Dolby Vision and Dolby Atmos.
Dividend
Today, Dolby announced a cash dividend of $0.27 per share of
Class A and Class B common stock, payable on August 22, 2023,
to stockholders of record as of the close of business on
August 14, 2023.
Financial Outlook
Dolby’s financial outlook relies on estimates of royalty-based
revenue that take into consideration the macroeconomic effect of
certain events, including supply chain constraints, international
conflicts, and consumer demand for electronic products. In
addition, actual results could differ materially from the estimates
Dolby is providing below due in part to the increased uncertainty
resulting from these items as well as the geopolitical instability
and continuing concerns around inflation and elevated interest
rates. The uncertainty resulting from these factors has greatly
reduced its visibility into its future outlook. To the extent
possible, the estimates Dolby is 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 Dolby faces, and the section
captioned "Risk Factors" in its Quarterly Report on Form 10-Q for
the third quarter of fiscal 2023, to be filed on or around the date
hereof.
Dolby is providing the following estimates for the full year of
fiscal 2023:
- Total revenue is expected to range from $1.285 billion to
$1.315 billion.
- Gross margins are anticipated to be roughly 87.5% on a GAAP
basis and roughly 88.0% on a non-GAAP basis.
- Operating expenses are anticipated to range from $900 million
to $910 million on a GAAP basis and from $760 million to $770
million on a non-GAAP basis.
- Dolby expects operating margins on a GAAP basis to be roughly
18% and on a non-GAAP basis to be roughly 30%.
- Diluted earnings per share is anticipated to range from $2.10
to $2.30 on a GAAP basis and from $3.30 to $3.50 on a non-GAAP
basis.
Dolby is providing the following estimates for its fourth
quarter of fiscal 2023:
- Total revenue is estimated to range from $275 million to $305
million.
- Gross margins are anticipated to be roughly 86.5% on a GAAP
basis and roughly 87.5% on a non-GAAP basis.
- Operating expenses are anticipated to range from $227 million
to $237 million on a GAAP basis and from $195 million to $205
million on a non-GAAP basis.
- Effective tax rate is anticipated to range from 22% to 24% on a
GAAP basis and 19% to 21% on a non-GAAP basis.
- Diluted earnings per share is anticipated to range from $0.10
to $0.30 on a GAAP basis and from $0.40 to $0.60 on a non-GAAP
basis.
Conference Call Information
Members of Dolby management will lead a conference call open to
all interested parties to discuss third quarter fiscal 2023
financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m.
ET) on Thursday, August 3, 2023. Access to the teleconference
will be available at http://investor.dolby.com or by dialing
1-888-210-2212 (+1-646-960-0390 for international callers) and
entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00
p.m. ET) on Thursday, August 3, 2023, until 8:59 p.m. PT
(11:59 p.m. ET) on Thursday, August 10, 2023 by dialing
1-800-770-2030 (+1-647-362-9199 for international callers) and
entering the confirmation code 5587811. 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 management uses, and Dolby provides to investors,
certain non-GAAP financial measures as 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
and performance. Specifically, Dolby excludes the following as
adjustments from one or more of its 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 Dolby grants. These assumptions may differ from those used by
other companies. To facilitate more meaningful comparisons between
its underlying operating results and those of other companies,
Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes
intangible assets acquired in connection with acquisitions. These
intangible assets consist of patents and technology, customer
relationships, and other intangibles. Dolby records amortization
charges relating to these intangible assets in its GAAP financial
statements, and Dolby views these charges as items arising from
pre-acquisition activities that are determined by the timing and
valuation of its acquisitions. As these amortization charges do not
directly correlate to its operations during any particular period,
Dolby excludes these charges to facilitate an evaluation of its
current operating performance and comparisons to its past operating
results.
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. Dolby excludes restructuring
costs, including any adjustments to charges recorded in prior
periods (which may be credits), as Dolby believes that these costs
are not representative of its normal operating activities and
therefore, excluding these amounts enables a more effective
comparison of its past operating performance and to that of other
companies.
Income tax adjustments: The income tax effects of the
aforementioned non-GAAP adjustments do not directly correlate to
its operating performance so Dolby believes that excluding such
income tax effects provides a more meaningful view of its
underlying operating results to management and investors.
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, including
as a means to evaluate period-to-period comparisons. Dolby's
management does not itself, nor does it suggest that investors
should, consider non-GAAP financial measures in isolation from,
superior to, 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 and below. 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, expected financial results for the fourth quarter of
fiscal 2023 and full year fiscal 2023, Dolby's ability to expand
existing business, navigate challenging periods, pursue its
long-term growth opportunities, and advance its other long-term
objectives are "forward-looking statements" that inherently involve
substantial 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 economic conditions 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; the level at which Dolby
technologies are incorporated into products and the consumer demand
for such products; 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;
lengthening sales cycles; the impact to the overall cinema market
including adverse impact to Dolby’s revenue recognized on
box-office sales and demand for cinema products and services; 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, and other markets; the loss of, or reduction in
sales by, a key customer, partner, or licensee; pricing pressures;
risks relating to changing trends in the way that content is
distributed and consumed; risks relating to conducting business
internationally, including trade restrictions and changes in
diplomatic or trade relationships; risks relating to maintaining
patent coverage; 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
products and 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 and cinema industries generally, including the potential
impacts of the strikes by the WGA and SAG-AFTRA; 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 its
Quarterly Report on Form 10-Q filed on or around the date hereof.
Dolby may not actually achieve the plans, intentions, or
expectations disclosed in its forward-looking statements.
Forward-looking statements are based upon information available to
us as of the date of this press release, and while Dolby believes
such information forms a reasonable basis for such statements, such
information may be limited or incomplete. These statements are
inherently uncertain and investors are cautioned not to unduly rely
upon these statements. Except as required by law, 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. Dolby partners 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 in the United States and/or other
countries. Other trademarks remain the property of their
respective owners.
DOLBY LABORATORIES, INC. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts; unaudited) |
|
|
Fiscal Quarter Ended |
|
Fiscal Year-To-Date Ended |
|
June 30,2023 |
July 1,2022 |
|
June 30,2023 |
July 1,2022 |
Revenue: |
|
|
|
|
|
Licensing |
$ |
273,108 |
|
$ |
269,289 |
|
|
$ |
932,727 |
|
$ |
915,406 |
|
Products and services |
|
25,262 |
|
|
20,296 |
|
|
|
76,455 |
|
|
60,183 |
|
Total revenue |
|
298,370 |
|
|
289,585 |
|
|
|
1,009,182 |
|
|
975,589 |
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
Cost of licensing |
|
15,610 |
|
|
13,756 |
|
|
|
50,334 |
|
|
45,363 |
|
Cost of products and services |
|
25,905 |
|
|
22,201 |
|
|
|
66,680 |
|
|
58,818 |
|
Total cost of revenue |
|
41,515 |
|
|
35,957 |
|
|
|
117,014 |
|
|
104,181 |
|
|
|
|
|
|
|
Gross
profit |
|
256,855 |
|
|
253,628 |
|
|
|
892,168 |
|
|
871,408 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Research and development |
|
68,696 |
|
|
62,859 |
|
|
|
201,097 |
|
|
199,104 |
|
Sales and marketing |
|
85,594 |
|
|
87,114 |
|
|
|
263,494 |
|
|
268,514 |
|
General and administrative |
|
69,954 |
|
|
57,113 |
|
|
|
191,865 |
|
|
218,250 |
|
Restructuring charges |
|
16,676 |
|
|
976 |
|
|
|
16,465 |
|
|
6,043 |
|
Total operating expenses |
|
240,920 |
|
|
208,062 |
|
|
|
672,921 |
|
|
691,911 |
|
|
|
|
|
|
|
Operating
income |
|
15,935 |
|
|
45,566 |
|
|
|
219,247 |
|
|
179,497 |
|
|
|
|
|
|
|
Other
income/(expense): |
|
|
|
|
|
Interest income |
|
7,316 |
|
|
1,416 |
|
|
|
18,967 |
|
|
3,230 |
|
Interest expense |
|
(114 |
) |
|
(84 |
) |
|
|
(161 |
) |
|
(255 |
) |
Other income, net |
|
620 |
|
|
2,514 |
|
|
|
2,967 |
|
|
1,833 |
|
Total other income |
|
7,822 |
|
|
3,846 |
|
|
|
21,773 |
|
|
4,808 |
|
|
|
|
|
|
|
Income before income taxes |
|
23,757 |
|
|
49,412 |
|
|
|
241,020 |
|
|
184,305 |
|
Provision for income taxes |
|
(7,352 |
) |
|
(9,802 |
) |
|
|
(49,284 |
) |
|
(28,166 |
) |
Net income including
noncontrolling interest |
|
16,405 |
|
|
39,610 |
|
|
|
191,736 |
|
|
156,139 |
|
Less: net (income)/loss attributable to noncontrolling
interest |
|
(6 |
) |
|
(13 |
) |
|
|
(266 |
) |
|
192 |
|
Net income attributable
to Dolby Laboratories, Inc. |
$ |
16,399 |
|
$ |
39,597 |
|
|
$ |
191,470 |
|
$ |
156,331 |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ |
0.17 |
|
$ |
0.40 |
|
|
$ |
2.00 |
|
$ |
1.55 |
|
Diluted |
$ |
0.17 |
|
$ |
0.39 |
|
|
$ |
1.96 |
|
$ |
1.52 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
Basic |
|
95,658 |
|
|
100,213 |
|
|
|
95,794 |
|
|
100,936 |
|
Diluted |
|
97,459 |
|
|
101,474 |
|
|
|
97,588 |
|
|
102,993 |
|
DOLBY LABORATORIES, INC. |
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands; unaudited) |
|
|
June 30,2023 |
September 30,2022 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
765,079 |
|
$ |
620,127 |
|
Restricted cash |
|
34,080 |
|
|
8,244 |
|
Short-term investments |
|
124,210 |
|
|
189,213 |
|
Accounts receivable, net |
|
266,865 |
|
|
243,593 |
|
Contract assets, net |
|
192,585 |
|
|
176,093 |
|
Inventories, net |
|
32,398 |
|
|
23,549 |
|
Prepaid expenses and other current assets |
|
54,148 |
|
|
50,075 |
|
Total current assets |
|
1,469,365 |
|
|
1,310,894 |
|
Long-term investments |
|
98,103 |
|
|
102,514 |
|
Property, plant, and equipment, net |
|
501,666 |
|
|
513,481 |
|
Operating lease right-of-use assets |
|
39,273 |
|
|
46,530 |
|
Goodwill and intangible assets, net |
|
603,641 |
|
|
477,412 |
|
Deferred taxes |
|
209,681 |
|
|
183,568 |
|
Other non-current assets |
|
86,209 |
|
|
55,149 |
|
Total
assets |
$ |
3,007,938 |
|
$ |
2,689,548 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ |
15,395 |
|
$ |
14,171 |
|
Accrued liabilities |
|
346,525 |
|
|
230,237 |
|
Income taxes payable |
|
11,018 |
|
|
1,265 |
|
Contract liabilities |
|
36,586 |
|
|
18,588 |
|
Operating lease liabilities |
|
13,512 |
|
|
13,257 |
|
Total current liabilities |
|
423,036 |
|
|
277,518 |
|
Non-current contract liabilities |
|
41,624 |
|
|
23,203 |
|
Non-current operating lease liabilities |
|
36,552 |
|
|
37,685 |
|
Other non-current liabilities |
|
124,003 |
|
|
100,122 |
|
Total liabilities |
|
625,215 |
|
|
438,528 |
|
|
|
|
Stockholders’ equity: |
|
|
Class A common stock |
|
53 |
|
|
53 |
|
Class B common stock |
|
41 |
|
|
41 |
|
Retained earnings |
|
2,397,307 |
|
|
2,297,730 |
|
Accumulated other comprehensive loss |
|
(31,163 |
) |
|
(51,641 |
) |
Total stockholders’ equity –
Dolby Laboratories, Inc. |
|
2,366,238 |
|
|
2,246,183 |
|
Noncontrolling interest |
|
16,485 |
|
|
4,837 |
|
Total stockholders’ equity |
|
2,382,723 |
|
|
2,251,020 |
|
Total liabilities and
stockholders’ equity |
$ |
3,007,938 |
|
$ |
2,689,548 |
|
DOLBY LABORATORIES, INC. |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in thousands; unaudited) |
|
|
Fiscal Year-To-Date Ended |
|
June 30,2023 |
July 1,2022 |
Operating
activities: |
|
|
Net income including noncontrolling interest |
$ |
191,736 |
|
$ |
156,139 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
Depreciation and amortization |
|
61,428 |
|
|
69,382 |
|
Stock-based compensation |
|
90,291 |
|
|
87,963 |
|
Amortization of operating lease right-of-use assets |
|
9,829 |
|
|
11,658 |
|
Amortization of premium on investments |
|
(179 |
) |
|
1,109 |
|
Provision for/(benefit from) credit losses |
|
(348 |
) |
|
2,166 |
|
Deferred income taxes |
|
(21,653 |
) |
|
(29,143 |
) |
Other non-cash items affecting net income |
|
(1,751 |
) |
|
(2,388 |
) |
Changes in operating assets and liabilities: |
|
|
Accounts receivable, net |
|
43,546 |
|
|
(5,395 |
) |
Contract assets, net |
|
(10,105 |
) |
|
11,999 |
|
Inventories |
|
(2,425 |
) |
|
(12,231 |
) |
Operating lease right-of-use assets |
|
(3,799 |
) |
|
(941 |
) |
Prepaid expenses and other assets |
|
775 |
|
|
(1,169 |
) |
Accounts payable and accrued liabilities |
|
(83,737 |
) |
|
(29,782 |
) |
Income taxes, net |
|
14,975 |
|
|
17,023 |
|
Contract liabilities |
|
(1,686 |
) |
|
3,314 |
|
Operating lease liabilities |
|
(7,452 |
) |
|
(10,539 |
) |
Other non-current liabilities |
|
2,621 |
|
|
(1,898 |
) |
Net cash provided by operating
activities |
|
282,066 |
|
|
267,267 |
|
|
|
|
Investing
activities: |
|
|
Purchases of marketable securities |
|
(123,075 |
) |
|
(248,156 |
) |
Proceeds from sales of marketable securities |
|
54,020 |
|
|
8,970 |
|
Proceeds from maturities of marketable securities |
|
139,423 |
|
|
75,890 |
|
Purchases of property, plant, and equipment |
|
(22,154 |
) |
|
(37,218 |
) |
Business combinations, net of cash and restricted cash
acquired |
|
25,703 |
|
|
(38,171 |
) |
Purchases of intangible assets |
|
— |
|
|
(11,528 |
) |
Purchases of other investments |
|
— |
|
|
(5,000 |
) |
Net cash provided by/(used in)
investing activities |
|
73,917 |
|
|
(255,213 |
) |
|
|
|
Financing
activities: |
|
|
Proceeds from issuance of common stock |
|
37,231 |
|
|
53,600 |
|
Repurchase of common stock |
|
(124,276 |
) |
|
(310,486 |
) |
Payment of cash dividend |
|
(77,584 |
) |
|
(75,816 |
) |
Distribution to noncontrolling interest |
|
(266 |
) |
|
(1,435 |
) |
Shares repurchased for tax withholdings on vesting of restricted
stock |
|
(28,619 |
) |
|
(33,994 |
) |
Payment of deferred consideration for prior business
combinations |
|
(500 |
) |
|
— |
|
Net cash used in financing
activities |
|
(194,014 |
) |
|
(368,131 |
) |
|
|
|
Effect of foreign exchange rate changes on cash, cash equivalents,
and restricted cash |
|
8,819 |
|
|
(9,698 |
) |
Net increase/(decrease) in cash,
cash equivalents, and restricted cash |
|
170,788 |
|
|
(365,775 |
) |
Cash, cash equivalents, and
restricted cash at beginning of period |
|
628,371 |
|
|
1,233,032 |
|
Cash, cash equivalents, and
restricted cash at end of period |
$ |
799,159 |
|
$ |
867,257 |
|
GAAP to Non-GAAP Reconciliations |
(unaudited) |
|
|
|
|
|
|
|
The following
tables present Dolby's GAAP financial measures reconciled to the
non-GAAP financial measures included in this release for the third
quarters of fiscal 2023 and fiscal 2022: |
|
|
|
|
|
|
|
Net
income: |
|
|
|
|
Fiscal Quarter Ended |
(in thousands) |
|
|
|
|
June 30,2023 |
July 1,2022 |
GAAP net income |
|
|
|
|
$ |
16,399 |
|
$ |
39,597 |
|
Stock-based
compensation(1) |
|
|
|
|
|
29,224 |
|
|
27,608 |
|
Amortization of
acquisition-related intangibles(2) |
|
|
|
|
|
3,031 |
|
|
1,749 |
|
Restructuring charges |
|
|
|
|
|
16,676 |
|
|
976 |
|
Income tax adjustments |
|
|
|
|
|
(11,255 |
) |
|
(1,260 |
) |
Non-GAAP net income |
|
|
|
|
$ |
54,075 |
|
$ |
68,670 |
|
|
|
|
|
|
|
|
(1) Stock-based compensation
included in above line items: |
|
|
|
|
|
|
Cost of products and services |
|
|
|
|
$ |
375 |
|
$ |
414 |
|
Research and development |
|
|
|
|
|
9,681 |
|
|
9,171 |
|
Sales and marketing |
|
|
|
|
|
9,756 |
|
|
9,718 |
|
General and administrative |
|
|
|
|
|
9,412 |
|
|
8,305 |
|
|
|
|
|
|
|
|
(2) Amortization of
acquisition-related intangibles included in above line items: |
|
|
|
|
|
|
Cost of licensing |
|
|
|
|
$ |
62 |
|
$ |
61 |
|
Cost of products and services |
|
|
|
|
|
866 |
|
|
780 |
|
Research and development |
|
|
|
|
|
— |
|
|
124 |
|
Sales and marketing |
|
|
|
|
|
806 |
|
|
784 |
|
General and administrative |
|
|
|
|
|
1,297 |
|
|
— |
|
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
|
|
|
Fiscal Quarter Ended |
|
|
|
|
|
June 30,2023 |
July 1,2022 |
GAAP diluted earnings per
share |
|
|
|
|
$ |
0.17 |
|
$ |
0.39 |
|
Stock-based compensation |
|
|
|
|
|
0.30 |
|
|
0.27 |
|
Amortization of
acquisition-related intangibles |
|
|
|
|
|
0.03 |
|
|
0.02 |
|
Restructuring charges |
|
|
|
|
|
0.17 |
|
|
0.01 |
|
Income tax adjustments |
|
|
|
|
|
(0.12 |
) |
|
(0.01 |
) |
Non-GAAP diluted earnings per
share |
|
|
|
|
$ |
0.55 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - diluted(in thousands) |
|
|
|
|
|
97,459 |
|
|
101,474 |
|
|
|
|
|
|
|
|
The following
tables present a reconciliation between GAAP and non-GAAP versions
of the estimated financial measures for the fourth quarter of
fiscal 2023 and full year fiscal 2023 included in this
release: |
|
|
|
|
|
|
|
Gross
margin: |
|
|
Q4 2023 |
|
|
Fiscal 2023 |
GAAP gross margin |
|
|
86.5% +/- |
|
|
87.5% +/- |
Stock-based compensation |
|
|
|
0.4 |
% |
|
|
|
0.2 |
% |
Amortization of
acquisition-related intangibles |
|
|
|
0.6 |
% |
|
|
|
0.3 |
% |
Non-GAAP gross margin |
|
|
87.5% +/- |
|
|
88.0% +/- |
|
|
|
|
|
|
|
Operating
expenses (in
millions): |
|
|
Q4 2023 |
|
|
Fiscal 2023 |
GAAP operating expenses (low -
high end of range) |
|
|
$227 - $237 |
|
|
$900 - $910 |
Stock-based compensation |
|
|
|
(31 |
) |
|
|
|
(119 |
) |
Amortization of
acquisition-related intangibles |
|
|
|
(1 |
) |
|
|
|
(5 |
) |
Restructuring charges,
net |
|
|
|
— |
|
|
|
|
(16 |
) |
Non-GAAP operating expenses
(low - high end of range) |
|
|
$195 - $205 |
|
|
$760 - $770 |
|
|
|
|
|
|
|
Operating
margin: |
|
|
|
|
Fiscal 2023 |
GAAP operating margin |
|
|
|
|
|
18% +/- |
Stock-based compensation |
|
|
|
|
|
|
10 |
% |
Amortization of
acquisition-related intangibles |
|
|
|
|
|
|
1 |
% |
Restructuring charges,
net |
|
|
|
|
|
|
1 |
% |
Non-GAAP operating margin |
|
|
|
|
|
30% +/- |
|
|
|
|
|
|
|
Effective tax
rate: |
|
|
|
|
|
Q4 2023 |
GAAP effective tax rate (low -
high end of range) |
|
|
|
|
|
22% - 24% |
Stock-based compensation (low
- high end of range) |
|
|
|
|
|
(2%) - (1%) |
Amortization of
acquisition-related intangibles (low - high end of range) |
|
|
|
|
|
(1%) - 0% |
Non-GAAP effective tax rate
(low - high end of range) |
|
|
|
|
|
19% - 21% |
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
Q4 2023 |
|
Fiscal 2023 |
|
|
Low |
High |
|
Low |
High |
GAAP diluted earnings per share |
|
$ |
0.10 |
|
$ |
0.30 |
|
|
$ |
2.10 |
|
$ |
2.30 |
|
Stock-based compensation |
|
|
0.33 |
|
|
0.33 |
|
|
|
1.24 |
|
|
1.24 |
|
Amortization of
acquisition-related intangibles |
|
|
0.03 |
|
|
0.03 |
|
|
|
0.08 |
|
|
0.08 |
|
Restructuring charges,
net |
|
|
— |
|
|
— |
|
|
|
0.17 |
|
|
0.17 |
|
Income tax adjustments |
|
|
(0.06 |
) |
|
(0.06 |
) |
|
|
(0.29 |
) |
|
(0.29 |
) |
Non-GAAP diluted earnings per
share |
|
$ |
0.40 |
|
$ |
0.60 |
|
|
$ |
3.30 |
|
$ |
3.50 |
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - diluted (in millions) |
|
|
97 |
|
|
97 |
|
|
|
98 |
|
|
98 |
|
Investor Contact:Lana
Adair415-217-2631investor@dolby.com
Media Contact:Rachel LoweryDolby
Laboratories714-496-3816rachel.lowery@dolby.com
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