Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company's
financial results for the third quarter (Q3) of fiscal year 2015. For
the third quarter, Dolby reported total revenue of $231.7 million,
compared to $223.4 million for the third quarter of fiscal year 2014.
Third quarter GAAP net income was $35.5 million, or $0.34 per diluted
share, compared to $39.8 million, or $0.38 per diluted share, for the
third quarter of fiscal 2014. On a non-GAAP basis, third quarter net
income was $51.4 million, or $0.49 per diluted share, compared to $54.3
million, or $0.52 per diluted share, for the third quarter of fiscal
2014. Dolby's non-GAAP measures are described and reconciled to the
corresponding GAAP measures at the end of this release.
"Despite signs of near-term weakness in consumer markets, our core
business remains strong and our growth initiatives continue to advance,"
said Kevin Yeaman, President and CEO, Dolby Laboratories. "The first
five Dolby Cinema locations in the US opened this quarter and have been
met with spectacular audience and industry reactions."
Dividend
Dolby today announced a cash dividend of $0.10 per share of Class A and
Class B common stock, payable on August 11, 2015, to stockholders of
record as of the close of business on August 3, 2015.
Financial Outlook
Q4 2015
Dolby estimates that total revenue for the fourth quarter (Q4) of 2015
will range from $230 million to $240 million. Gross margin percentages
are projected to range between approximately 89 percent and 90 percent
on a GAAP basis and between 90 percent and 91 percent on a non-GAAP
basis.
Dolby anticipates that operating expenses will be between $167 million
and $170 million on a GAAP basis and between $148 million and $151
million on a non-GAAP basis.
Dolby estimates that diluted earnings per share will be between $0.27
and $0.33 on a GAAP basis and between $0.43 and $0.49 on a non-GAAP
basis.
Dolby estimates that its fiscal Q4 2015 effective tax rate will be
approximately 26 percent on both a GAAP and non-GAAP basis.
Fiscal Year 2015
Dolby anticipates that total revenue will range from $970 million to
$980 million.
Dolby anticipates that operating expenses will be between $658 million
and $661 million on a GAAP basis and between $583 million and $586
million on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all
interested parties to discuss Q3 fiscal 2015 financial results for Dolby
Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, July 22, 2015.
Access to the teleconference will be available over the Internet from http://investor.dolby.com/events.cfm
or by dialing 1-888-206-4836. International callers can access the
conference call at 1-913-312-0413.
A replay of the call will be available from 5:00 p.m. PT on Wednesday,
July 22, 2015, until 9:00 p.m. PT on Wednesday, July 29, 2015, by
dialing 1-877-870-5176 (international callers can access the replay by
dialing 1-858-384-5517) and entering the confirmation code 9706853. An
archived version of the teleconference will also be available on the
Dolby Laboratories website, http://investor.dolby.com/events.cfm.
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP basis,
Dolby provides certain non-GAAP financial measures. These measures are
adjusted to exclude amounts related to stock-based compensation, expense
associated with dividend equivalents paid on restricted stock units, the
amortization of intangibles from business combinations, restructuring
charges, and the related tax impact of these items. Dolby presents
non-GAAP financial measures in reporting its financial results 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. Dolby's management believes it is
useful for itself and investors to review both GAAP and non-GAAP
measures in order to assess the performance of Dolby's business for
planning and forecasting in subsequent periods. 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
Dolby's investor relations website at 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 Q4 2015
and fiscal 2015, our ability to advance our long-term objectives, and
future quarterly 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 projected. The following important factors, without
limitation, could cause actual results to differ materially from those
in the forward-looking statements: risks associated with trends in the
markets in which Dolby operates, including the personal computer, DVD,
and Blu-ray Disc™, broadcast, consumer electronics, gaming, mobile, and
automobile markets; the loss of, or reduction in sales by, a key
customer or licensee; pricing pressures; risks associated with the rate
at which OEMs include optical disc playback in Windows® 8 and
Windows® 10 devices and the rate of consumer adoption of
Windows operating systems; risks that a shift from disc-based media to
online media content could result in fewer devices with Dolby®
technologies; risks associated with the effects of macroeconomic
conditions, including trends in consumer spending; risks relating to the
expiration of patents; the timing of Dolby's receipt of royalty reports
and payments from its licensees, including back payments; timing of
revenue recognition under licensing agreements and other contractual
arrangements; Dolby's accuracy of calculation of royalties due to its
licensors; 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; the
development and growth of the market for digital cinema and digital 3D
and Dolby's ability to successfully penetrate this market; Dolby's
ability to expand its business generally, and to expand its business
beyond sound technologies to other technologies related to digital
entertainment delivery; 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 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) creates audio, video, and voice
technologies that transform entertainment and communications in mobile
devices, at the cinema, at home, and at work. For 50 years, sight and
sound experiences have become more vibrant, clear, and powerful in
Dolby. For more information, please visit www.dolby.com.
Dolby and the double-D symbol are registered trademarks of Dolby
Laboratories. Dolby Cinema is a trademark of Dolby Laboratories. Blu-ray
Disc is a trademark of Blu-ray Disc Association. Windows is a registered
trademark of Microsoft Corporation. S15/29000 DLB-F
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DOLBY LABORATORIES, INC.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
|
|
Fiscal Year-To-Date Ended
|
|
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensing
|
|
|
|
$
|
204,855
|
|
|
|
$
|
205,625
|
|
|
|
|
$
|
664,786
|
|
|
|
$
|
669,901
|
|
|
Products
|
|
|
|
22,596
|
|
|
|
12,971
|
|
|
|
|
58,844
|
|
|
|
45,638
|
|
|
Services
|
|
|
|
4,251
|
|
|
|
4,754
|
|
|
|
|
14,260
|
|
|
|
17,680
|
|
|
Total revenue
|
|
|
|
231,702
|
|
|
|
223,350
|
|
|
|
|
737,890
|
|
|
|
733,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of licensing
|
|
|
|
1,347
|
|
|
|
4,389
|
|
|
|
|
8,615
|
|
|
|
12,132
|
|
|
Cost of products
|
|
|
|
20,027
|
|
|
|
10,860
|
|
|
|
|
50,848
|
|
|
|
34,941
|
|
|
Cost of services
|
|
|
|
3,506
|
|
|
|
3,620
|
|
|
|
|
9,976
|
|
|
|
10,683
|
|
|
Total cost of revenue
|
|
|
|
24,880
|
|
|
|
18,869
|
|
|
|
|
69,439
|
|
|
|
57,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
206,822
|
|
|
|
204,481
|
|
|
|
|
668,451
|
|
|
|
675,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
45,508
|
|
|
|
46,786
|
|
|
|
|
150,703
|
|
|
|
136,047
|
|
|
Sales and marketing
|
|
|
|
70,782
|
|
|
|
63,602
|
|
|
|
|
204,740
|
|
|
|
188,809
|
|
|
General and administrative
|
|
|
|
45,587
|
|
|
|
44,205
|
|
|
|
|
135,956
|
|
|
|
132,570
|
|
|
Restructuring charges/(credits)
|
|
|
|
—
|
|
|
|
(688
|
)
|
|
|
|
(39
|
)
|
|
|
2,613
|
|
|
Total operating expenses
|
|
|
|
161,877
|
|
|
|
153,905
|
|
|
|
|
491,360
|
|
|
|
460,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
44,945
|
|
|
|
50,576
|
|
|
|
|
177,091
|
|
|
|
215,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
1,453
|
|
|
|
959
|
|
|
|
|
3,444
|
|
|
|
2,533
|
|
|
Interest expense
|
|
|
|
(69
|
)
|
|
|
(251
|
)
|
|
|
|
(115
|
)
|
|
|
(456
|
)
|
|
Other income/(expense), net
|
|
|
|
1,049
|
|
|
|
530
|
|
|
|
|
1,159
|
|
|
|
(2,064
|
)
|
|
Total other income/(expense)
|
|
|
|
2,433
|
|
|
|
1,238
|
|
|
|
|
4,488
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
47,378
|
|
|
|
51,814
|
|
|
|
|
181,579
|
|
|
|
215,437
|
|
|
Provision for income taxes
|
|
|
|
(11,522
|
)
|
|
|
(11,251
|
)
|
|
|
|
(45,254
|
)
|
|
|
(53,079
|
)
|
|
Net income including controlling interest
|
|
|
|
35,856
|
|
|
|
40,563
|
|
|
|
|
136,325
|
|
|
|
162,358
|
|
|
Less: net (income) attributable to controlling interest
|
|
|
|
(350
|
)
|
|
|
(784
|
)
|
|
|
|
(1,488
|
)
|
|
|
(2,196
|
)
|
|
Net income attributable to Dolby Laboratories, Inc.
|
|
|
|
$
|
35,506
|
|
|
|
$
|
39,779
|
|
|
|
|
$
|
134,837
|
|
|
|
$
|
160,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.39
|
|
|
|
|
$
|
1.32
|
|
|
|
$
|
1.57
|
|
|
Diluted
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.38
|
|
|
|
|
$
|
1.29
|
|
|
|
$
|
1.55
|
|
|
Weighted-Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
102,670
|
|
|
|
102,350
|
|
|
|
|
102,494
|
|
|
|
102,131
|
|
|
Diluted
|
|
|
|
104,105
|
|
|
|
103,942
|
|
|
|
|
104,127
|
|
|
|
103,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend declared per common share
|
|
|
|
$
|
0.10
|
|
|
|
$
|
—
|
|
|
|
|
$
|
0.30
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOLBY LABORATORIES, INC.
INTERIM CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 26,
2015
|
|
|
September 26,
2014
|
|
ASSETS
|
|
|
|
(unaudited)
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
470,868
|
|
|
|
$
|
568,472
|
|
Restricted cash
|
|
|
|
1,919
|
|
|
|
2,142
|
|
Short-term investments
|
|
|
|
165,833
|
|
|
|
231,208
|
|
Accounts receivable, net
|
|
|
|
103,921
|
|
|
|
86,168
|
|
Inventories
|
|
|
|
20,070
|
|
|
|
8,536
|
|
Deferred taxes
|
|
|
|
87,367
|
|
|
|
86,445
|
|
Prepaid expenses and other current assets
|
|
|
|
45,551
|
|
|
|
22,880
|
|
Total current assets
|
|
|
|
895,529
|
|
|
|
1,005,851
|
|
Long-term investments
|
|
|
|
373,498
|
|
|
|
296,335
|
|
Property, plant and equipment, net
|
|
|
|
386,448
|
|
|
|
289,755
|
|
Intangible assets, net
|
|
|
|
117,726
|
|
|
|
63,700
|
|
Goodwill
|
|
|
|
312,454
|
|
|
|
277,574
|
|
Deferred taxes
|
|
|
|
56,217
|
|
|
|
41,746
|
|
Other non-current assets
|
|
|
|
9,763
|
|
|
|
9,051
|
|
Total assets
|
|
|
|
$
|
2,151,635
|
|
|
|
$
|
1,984,012
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
27,566
|
|
|
|
$
|
15,898
|
|
Accrued liabilities
|
|
|
|
163,776
|
|
|
|
158,376
|
|
Income taxes payable
|
|
|
|
—
|
|
|
|
2,600
|
|
Deferred revenue
|
|
|
|
18,016
|
|
|
|
12,496
|
|
Total current liabilities
|
|
|
|
209,358
|
|
|
|
189,370
|
|
Long-term deferred revenue
|
|
|
|
29,661
|
|
|
|
19,279
|
|
Other non-current liabilities
|
|
|
|
72,633
|
|
|
|
43,715
|
|
Total liabilities
|
|
|
|
311,652
|
|
|
|
252,364
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Class A common stock
|
|
|
|
53
|
|
|
|
51
|
|
Class B common stock
|
|
|
|
51
|
|
|
|
52
|
|
Additional paid-in capital
|
|
|
|
65,586
|
|
|
|
46,415
|
|
Retained earnings
|
|
|
|
1,764,578
|
|
|
|
1,660,485
|
|
Accumulated other comprehensive income/(loss)
|
|
|
|
(7,391
|
)
|
|
|
3,014
|
|
Total stockholders’ equity – Dolby Laboratories, Inc.
|
|
|
|
1,822,877
|
|
|
|
1,710,017
|
|
Controlling interest
|
|
|
|
17,106
|
|
|
|
21,631
|
|
Total stockholders’ equity
|
|
|
|
1,839,983
|
|
|
|
1,731,648
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
2,151,635
|
|
|
|
$
|
1,984,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOLBY LABORATORIES, INC.
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
|
|
Fiscal Year-To-Date Ended
|
|
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income including controlling interest
|
|
|
|
$
|
35,856
|
|
|
|
$
|
40,563
|
|
|
|
|
$
|
136,325
|
|
|
|
$
|
162,358
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
17,189
|
|
|
|
13,877
|
|
|
|
|
50,767
|
|
|
|
38,991
|
|
|
Stock-based compensation
|
|
|
|
16,313
|
|
|
|
15,966
|
|
|
|
|
50,822
|
|
|
|
48,773
|
|
|
Amortization of premium on investments
|
|
|
|
2,413
|
|
|
|
2,462
|
|
|
|
|
7,224
|
|
|
|
7,056
|
|
|
Excess tax benefit from exercise of stock options
|
|
|
|
(437
|
)
|
|
|
(295
|
)
|
|
|
|
(2,532
|
)
|
|
|
(1,857
|
)
|
|
Provision for doubtful accounts
|
|
|
|
457
|
|
|
|
118
|
|
|
|
|
(30
|
)
|
|
|
625
|
|
|
Deferred income taxes
|
|
|
|
(7,407
|
)
|
|
|
(3,634
|
)
|
|
|
|
(15,088
|
)
|
|
|
(9,936
|
)
|
|
Other non-cash items affecting net income
|
|
|
|
676
|
|
|
|
(488
|
)
|
|
|
|
1,928
|
|
|
|
2,455
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(5,860
|
)
|
|
|
13,767
|
|
|
|
|
(9,317
|
)
|
|
|
1,581
|
|
|
Inventories
|
|
|
|
3,841
|
|
|
|
1,014
|
|
|
|
|
5,238
|
|
|
|
2,654
|
|
|
Prepaid expenses and other assets
|
|
|
|
(134
|
)
|
|
|
(662
|
)
|
|
|
|
(6,179
|
)
|
|
|
(1,801
|
)
|
|
Accounts payable and other liabilities
|
|
|
|
(22,132
|
)
|
|
|
11,696
|
|
|
|
|
(18,909
|
)
|
|
|
17,033
|
|
|
Income taxes, net
|
|
|
|
6,226
|
|
|
|
(1,556
|
)
|
|
|
|
18,290
|
|
|
|
11,830
|
|
|
Deferred revenue
|
|
|
|
1,672
|
|
|
|
(180
|
)
|
|
|
|
7,158
|
|
|
|
(7,956
|
)
|
|
Other non-current liabilities
|
|
|
|
(496
|
)
|
|
|
(100
|
)
|
|
|
|
420
|
|
|
|
162
|
|
|
Net cash provided by operating activities
|
|
|
|
48,177
|
|
|
|
92,548
|
|
|
|
|
226,117
|
|
|
|
271,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of investments
|
|
|
|
(162,483
|
)
|
|
|
(124,520
|
)
|
|
|
|
(357,096
|
)
|
|
|
(303,350
|
)
|
|
Proceeds from sales of investment securities
|
|
|
|
100,562
|
|
|
|
76,873
|
|
|
|
|
220,636
|
|
|
|
140,297
|
|
|
Proceeds from maturities of investment securities
|
|
|
|
37,660
|
|
|
|
24,200
|
|
|
|
|
117,545
|
|
|
|
105,602
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(41,296
|
)
|
|
|
(19,250
|
)
|
|
|
|
(119,787
|
)
|
|
|
(37,122
|
)
|
|
Payments for business acquisitions, net of cash acquired
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(93,516
|
)
|
|
|
—
|
|
|
Purchase of intangible assets
|
|
|
|
(16,300
|
)
|
|
|
(7,550
|
)
|
|
|
|
(22,716
|
)
|
|
|
(19,950
|
)
|
|
Proceeds from sale of property, plant and equipment and assets held
for sale
|
|
|
|
15
|
|
|
|
3,313
|
|
|
|
|
18
|
|
|
|
3,355
|
|
|
Change in restricted cash
|
|
|
|
237
|
|
|
|
10
|
|
|
|
|
223
|
|
|
|
(159
|
)
|
|
Net cash used in investing activities
|
|
|
|
(81,605
|
)
|
|
|
(46,924
|
)
|
|
|
|
(254,693
|
)
|
|
|
(111,327
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
|
15,419
|
|
|
|
6,683
|
|
|
|
|
28,057
|
|
|
|
24,147
|
|
|
Repurchase of common stock
|
|
|
|
(15,592
|
)
|
|
|
(29,298
|
)
|
|
|
|
(47,956
|
)
|
|
|
(40,958
|
)
|
|
Payment of cash dividend
|
|
|
|
(10,274
|
)
|
|
|
—
|
|
|
|
|
(30,744
|
)
|
|
|
—
|
|
|
Distribution to controlling interest
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(5,628
|
)
|
|
|
—
|
|
|
Excess tax benefit from the exercise of stock options
|
|
|
|
437
|
|
|
|
295
|
|
|
|
|
2,532
|
|
|
|
1,857
|
|
|
Shares repurchased for tax withholdings on vesting of restricted
stock
|
|
|
|
(1,109
|
)
|
|
|
(863
|
)
|
|
|
|
(12,918
|
)
|
|
|
(9,221
|
)
|
|
Net cash used in financing activities
|
|
|
|
(11,119
|
)
|
|
|
(23,183
|
)
|
|
|
|
(66,657
|
)
|
|
|
(24,175
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
|
1,421
|
|
|
|
(1,243
|
)
|
|
|
|
(2,371
|
)
|
|
|
(766
|
)
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
|
(43,126
|
)
|
|
|
21,198
|
|
|
|
|
(97,604
|
)
|
|
|
135,700
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
513,994
|
|
|
|
568,899
|
|
|
|
|
568,472
|
|
|
|
454,397
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
470,868
|
|
|
|
$
|
590,097
|
|
|
|
|
$
|
470,868
|
|
|
|
$
|
590,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliations
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present Dolby's GAAP financial measures
reconciled to the non-GAAP financial measures included in this
release for the third quarter of fiscal 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
Net income:
|
|
|
|
Fiscal Quarter Ended
|
|
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
GAAP net income
|
|
|
|
$
|
35.5
|
|
|
|
$
|
39.8
|
|
|
Stock-based compensation
|
|
|
|
16.3
|
|
|
|
16.0
|
|
|
RSU dividend equivalent
|
|
|
|
0.6
|
|
|
|
0.7
|
|
|
Amortization of acquired intangibles
|
|
|
|
4.1
|
|
|
|
2.9
|
|
|
Restructuring charges, net
|
|
|
|
—
|
|
|
|
(0.7
|
)
|
|
Income tax adjustments
|
|
|
|
(5.1
|
)
|
|
|
(4.4
|
)
|
|
Non-GAAP net income
|
|
|
|
$
|
51.4
|
|
|
|
$
|
54.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
Fiscal Quarter Ended
|
|
|
|
|
|
June 26,
2015
|
|
|
June 27,
2014
|
|
GAAP diluted earnings per share
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.38
|
|
|
Stock-based compensation
|
|
|
|
0.16
|
|
|
|
0.15
|
|
|
RSU dividend equivalent
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Amortization of acquired intangibles
|
|
|
|
0.04
|
|
|
|
0.03
|
|
|
Restructuring charges, net
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
Income tax adjustments
|
|
|
|
(0.06
|
)
|
|
|
(0.04
|
)
|
|
Non-GAAP diluted earnings per share
|
|
|
|
$
|
0.49
|
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (in millions)
|
|
|
|
104
|
|
|
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present a reconciliation between GAAP and
non-GAAP versions of the estimated financial amounts for the fourth
quarter of fiscal 2015 and fiscal year 2015 included in this release:
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin:
|
|
|
|
Q4 2015
|
|
|
|
|
GAAP gross margin (low - high end of range)
|
|
|
|
89% - 90
|
%
|
|
|
|
|
Stock-based compensation
|
|
|
|
0.1
|
%
|
|
|
|
|
Amortization of acquired intangibles
|
|
|
|
0.9
|
%
|
|
|
|
|
Non-GAAP gross margin (low - high end of range)
|
|
|
|
90 % - 91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
Q4 2015
|
|
|
Fiscal 2015
|
|
GAAP operating expenses (low - high end of range)
|
|
|
|
$167 - $170
|
|
|
|
$658 - $661
|
|
Stock-based compensation
|
|
|
|
(16
|
)
|
|
|
(66
|
)
|
|
RSU dividend equivalent
|
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
Amortization of acquired intangibles
|
|
|
|
(2
|
)
|
|
|
(7
|
)
|
|
Non-GAAP operating expenses (low - high end of range)
|
|
|
|
$148 - $151
|
|
|
|
$583 - $586
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
Q4 2015
|
|
|
|
|
|
Low
|
|
|
High
|
|
GAAP diluted earnings per share
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.33
|
|
|
Stock-based compensation
|
|
|
|
0.16
|
|
|
|
0.16
|
|
|
RSU dividend equivalent
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Amortization of acquired intangibles
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
Income tax adjustments
|
|
|
|
(0.05
|
)
|
|
|
(0.05
|
)
|
|
Non-GAAP diluted earnings per share
|
|
|
|
$
|
0.43
|
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (in millions)
|
|
|
|
104
|
|
|
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150722006139/en/
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