SAN
FRANCISCO, Nov. 16, 2023 /PRNewswire/ -- Dolby
Laboratories, Inc. (NYSE:DLB) today announced the company's
financial results for the fourth quarter and full year of fiscal
2023.
"We finished our fiscal year on a solid note," said Kevin Yeaman, President and CEO, Dolby
Laboratories. "We remain confident in our opportunity to drive long
term growth in TVs, Mobile, and Automotive as Dolby enabled content
continues to proliferate and attract more consumers."
Fourth Quarter Fiscal 2023 Financial Highlights
- Total revenue was $290.6 million,
compared to $278.2 million for the
fourth quarter of fiscal 2022.
- GAAP net income was $9.2 million,
or $0.09 per diluted share, compared
to GAAP net income of $27.8 million,
or $0.28 per diluted share, for the
fourth quarter of fiscal 2022. On a non-GAAP basis, fourth quarter
net income, which excludes a restructuring charge of approximately
$30 million described in more detail
below, was $63.9 million, or
$0.65 per diluted share, compared to
$52.8 million, or $0.54 per diluted share, for the fourth quarter
of fiscal 2022.
- Cash flow from operations was $85.0
million, compared to $51.3
million for the fourth quarter of fiscal 2022.
- Dolby repurchased 0.3 million shares of its common stock and
ended the quarter with approximately $212
million of stock repurchase authorization available going
forward.
Full Year Fiscal 2023 Financial Highlights
- Total revenue was $1.30 billion,
compared to $1.25 billion for the
full year of fiscal 2022.
- GAAP net income was $200.7
million, or $2.05 per diluted
share, compared to GAAP net income of $184.1
million, or $1.81 per diluted
share, for the full year of fiscal 2022. On a non-GAAP basis, full
year net income was $348.0 million,
or $3.56 per diluted share, compared
to $319.9 million, or $3.14 per diluted share, for the full year of
fiscal 2022.
- Cash flows from operations were $367.1
million, compared to $318.6
million for the full year of fiscal 2022.
- We held cash, cash equivalents, and investments of $982.3 million as of September 29, 2023.
A complete listing of Dolby's non-GAAP measures are described
and reconciled to the corresponding GAAP measures at the end of
this release.
Fourth Quarter Business Highlights
- Apple debuted its latest iPhones powered by Dolby Vision and
Dolby Atmos, including the iPhone 15, iPhone 15 Plus, iPhone 15
Pro, and iPhone 15 Pro Max.
- Yangwang announced its first car, the Yangwang U8 model,
supporting Dolby Atmos.
- Polytron, the largest TV OEM in Indonesia, launched TVs that support Dolby
Vision and Dolby Atmos.
- Hoichoi, an Indian Over-The-Top platform, adopted Dolby Atmos
and Dolby Vision.
- Honor, a Chinese smart phone manufacturer, recently launched
smart phones that support Dolby Vision playback.
- TCL's 2024 TV lineup will support Dolby Atmos FlexConnect, a
new solution that enables consumers to place wireless speakers,
paired with a TV, anywhere in a room and automatically get an
immersive Dolby Atmos experience.
Dividend
Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common
stock, payable on December 5, 2023, to stockholders of
record as of the close of business on November 28, 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 Annual Report on Form 10-K for
fiscal 2023, to be filed on or around the date hereof.
Dolby is providing the following estimates for its first quarter
of fiscal 2024:
- Total revenue is estimated to range from $300 million to $330
million.
- Gross margins are anticipated to range from 89% to 90%.
- Operating expenses are anticipated to range from $220 million to $230
million on a GAAP basis and from $180
million to $190 million on a
non-GAAP basis.
- Effective tax rate is anticipated to be approximately 23% on a
GAAP basis and approximately 20% on a non-GAAP basis.
- Diluted earnings per share is anticipated to range from
$0.44 to $0.59 on a GAAP basis and from $0.80 to $0.95 on a
non-GAAP basis.
Dolby is providing the following estimates for the full year of
fiscal 2024:
- Total revenue is expected to be approximately $1.30 billion.
- Gross margins are anticipated to be approximately 89%.
- Operating expenses are anticipated to range from $885 million to $895
million on a GAAP basis and from $740
million to $750 million on a
non-GAAP basis.
- Dolby expects operating margins on a GAAP basis to be
approximately 20% and on a non-GAAP basis to be approximately
32%.
- Diluted earnings per share is anticipated to range from
$2.30 to $2.45 on a GAAP basis and from $3.60 to $3.75 on a
non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to
all interested parties to discuss fourth quarter and full year
fiscal 2023 financial results for Dolby Laboratories at
2:00 p.m. PT (5:00 p.m. ET) on Thursday, November 16,
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, November 16, 2023, until 8:59 p.m. PT (11:59 p.m.
ET) on Thursday, November 23,
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.
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 as part of an acquisition in
2014 related to our cinema products business. We expect this
settlement and related accrual to fully resolve this matter. We
have excluded this item as it was an unusual, non-recurring event
that is not representative of our normal operating activities and
therefore, excluding this amount enables a more effective
comparison 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. For the fourth quarter
of fiscal 2023, we excluded from non-GAAP net income and diluted
earnings per share a restructuring charge of about $30 million comprised of approximately
$13 million for severance and related
benefits and an impairment loss of approximately $17 million related primarily to internally
developed software for projects we are no longer pursuing. 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 first quarter of
fiscal 2024 and full year fiscal 2024, 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 and international conflicts;
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 recent 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 Annual Report on Form 10-K 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.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands,
except per share amounts; unaudited)
|
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
|
September
29,
2023
|
September
30,
2022
|
|
September
29,
2023
|
September
30,
2022
|
Revenue:
|
|
|
|
|
|
Licensing
|
$
265,203
|
$
249,127
|
|
$
1,197,930
|
$
1,164,533
|
Products and
services
|
25,359
|
29,077
|
|
101,814
|
89,260
|
Total
revenue
|
290,562
|
278,204
|
|
1,299,744
|
1,253,793
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
Cost of
licensing
|
14,556
|
16,234
|
|
64,890
|
61,597
|
Cost of
products and services
|
20,996
|
20,945
|
|
87,676
|
79,763
|
Total cost of
revenue
|
35,552
|
37,179
|
|
152,566
|
141,360
|
|
|
|
|
|
|
Gross
profit
|
255,010
|
241,025
|
|
1,147,178
|
1,112,433
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
70,426
|
62,070
|
|
271,523
|
261,174
|
Sales and
marketing
|
90,870
|
90,202
|
|
354,364
|
358,716
|
General and
administrative
|
66,612
|
57,065
|
|
258,477
|
275,315
|
Restructuring
charges
|
30,596
|
4,580
|
|
47,061
|
10,623
|
Total operating
expenses
|
258,504
|
213,917
|
|
931,425
|
905,828
|
|
|
|
|
|
|
Operating
income
|
(3,494)
|
27,108
|
|
215,753
|
206,605
|
|
|
|
|
|
|
Other
income/(expense):
|
|
|
|
|
|
Interest
income/(expense), net
|
9,280
|
3,199
|
|
28,086
|
6,174
|
Other income,
net
|
3,247
|
667
|
|
6,214
|
2,500
|
Total other
income
|
12,527
|
3,866
|
|
34,300
|
8,674
|
|
|
|
|
|
|
Income before income
taxes
|
9,033
|
30,974
|
|
250,053
|
215,279
|
(Provision
for)/benefit from income taxes
|
875
|
(3,215)
|
|
(48,409)
|
(31,381)
|
Net income including
noncontrolling interest
|
9,908
|
27,759
|
|
201,644
|
183,898
|
Less: net
(income)/loss attributable to noncontrolling interest
|
(722)
|
(3)
|
|
(988)
|
189
|
Net income
attributable to Dolby Laboratories, Inc.
|
$
9,186
|
$
27,756
|
|
$
200,656
|
$
184,087
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
Basic
|
$
0.10
|
$
0.29
|
|
$
2.10
|
$
1.84
|
Diluted
|
$
0.09
|
$
0.28
|
|
$
2.05
|
$
1.81
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
Basic
|
95,701
|
97,077
|
|
95,771
|
99,990
|
Diluted
|
97,678
|
98,461
|
|
97,733
|
101,983
|
DOLBY LABORATORIES,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands;
unaudited)
|
|
|
September
29,
2023
|
September
30,
2022
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
745,364
|
$
620,127
|
Restricted
cash
|
72,602
|
8,244
|
Short-term
investments
|
139,148
|
189,213
|
Accounts receivable,
net
|
262,245
|
243,593
|
Contract assets,
net
|
182,130
|
176,093
|
Inventories,
net
|
35,623
|
23,549
|
Prepaid expenses and
other current assets
|
50,692
|
50,075
|
Total current
assets
|
1,487,804
|
1,310,894
|
Long-term
investments
|
97,812
|
102,514
|
Property, plant, and
equipment, net
|
481,581
|
513,481
|
Operating lease
right-of-use assets
|
40,199
|
46,530
|
Goodwill and
intangible assets, net
|
575,836
|
477,412
|
Deferred
taxes
|
201,860
|
183,568
|
Other non-current
assets
|
94,674
|
55,149
|
Total
assets
|
$
2,979,766
|
$
2,689,548
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
20,925
|
$
14,171
|
Accrued
liabilities
|
351,399
|
230,237
|
Income taxes
payable
|
4,769
|
1,265
|
Contract
liabilities
|
31,505
|
18,588
|
Operating lease
liabilities
|
13,628
|
13,257
|
Total current
liabilities
|
422,226
|
277,518
|
Non-current contract
liabilities
|
39,997
|
23,203
|
Non-current operating
lease liabilities
|
37,020
|
37,685
|
Other non-current
liabilities
|
108,339
|
100,122
|
Total
liabilities
|
607,582
|
438,528
|
|
|
|
Stockholders'
equity:
|
|
|
Class A common
stock
|
53
|
53
|
Class B common
stock
|
41
|
41
|
Retained
earnings
|
2,391,990
|
2,297,730
|
Accumulated other
comprehensive loss
|
(36,984)
|
(51,641)
|
Total stockholders'
equity – Dolby Laboratories, Inc.
|
2,355,100
|
2,246,183
|
Noncontrolling
interest
|
17,084
|
4,837
|
Total stockholders'
equity
|
2,372,184
|
2,251,020
|
Total liabilities
and stockholders' equity
|
$
2,979,766
|
$
2,689,548
|
DOLBY LABORATORIES,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands;
unaudited)
|
|
|
Fiscal Year
Ended
|
|
September
29,
2023
|
September
30,
2022
|
Operating
activities:
|
|
|
Net income including
noncontrolling interest
|
$
201,644
|
$
183,898
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation
and amortization
|
82,558
|
88,461
|
Stock-based
compensation
|
118,486
|
114,925
|
Amortization of
operating lease right-of-use assets
|
12,956
|
15,148
|
Amortization of
premium on investments
|
(860)
|
1,440
|
Provision
for/(benefit from) credit losses
|
(793)
|
5,460
|
Deferred income
taxes
|
(18,337)
|
(29,465)
|
Impairment loss
on internally developed software
|
16,225
|
—
|
Other non-cash
items affecting net income
|
(2,800)
|
(5,037)
|
Changes in
operating assets and liabilities:
|
|
|
Accounts receivable,
net
|
47,779
|
(14,314)
|
Contract assets,
net
|
347
|
6,300
|
Inventories
|
(13,226)
|
(11,759)
|
Operating lease
right-of-use assets
|
(8,817)
|
266
|
Prepaid expenses and
other assets
|
3,868
|
8,760
|
Accounts payable and
accrued liabilities
|
(52,315)
|
(33,542)
|
Income taxes,
net
|
(8,722)
|
8,446
|
Contract
liabilities
|
(8,379)
|
(413)
|
Operating lease
liabilities
|
(5,818)
|
(15,399)
|
Other non-current
liabilities
|
3,285
|
(4,599)
|
Net cash provided by
operating activities
|
367,081
|
318,576
|
|
|
|
Investing
activities:
|
|
|
Purchases of
marketable securities
|
(172,955)
|
(311,313)
|
Proceeds from sales of
marketable securities
|
54,964
|
9,459
|
Proceeds from
maturities of marketable securities
|
176,833
|
108,546
|
Purchases of property,
plant, and equipment
|
(30,339)
|
(47,928)
|
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
|
54,206
|
(295,935)
|
|
|
|
Financing
activities:
|
|
|
Proceeds from issuance
of common stock
|
47,781
|
57,848
|
Repurchase of common
stock
|
(149,276)
|
(530,486)
|
Payment of cash
dividend
|
(103,407)
|
(100,067)
|
Distribution to
noncontrolling interest
|
(266)
|
(1,435)
|
Shares repurchased for
tax withholdings on vesting of restricted stock
|
(31,144)
|
(36,418)
|
Payment of deferred
consideration for prior business combinations
|
(500)
|
—
|
Net cash used in
financing activities
|
(236,812)
|
(610,558)
|
|
|
|
Effect of foreign
exchange rate changes on cash, cash equivalents, and restricted
cash
|
5,120
|
(16,744)
|
Net increase/(decrease)
in cash, cash equivalents, and restricted cash
|
189,595
|
(604,661)
|
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
|
$
817,966
|
$
628,371
|
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 fourth quarters
of fiscal 2023 and fiscal 2022 and fiscal years ended September 29,
2023 and September 30, 2022:
|
|
|
|
|
|
|
|
Net
income:
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
(in
thousands)
|
|
September
29,
2023
|
September
30,
2022
|
|
September
29,
2023
|
September
30,
2022
|
GAAP net
income
|
|
$
9,186
|
$
27,756
|
|
$
200,656
|
$
184,087
|
Stock-based
compensation (1)
|
|
28,195
|
26,962
|
|
118,486
|
114,925
|
Amortization of
acquisition-related intangibles (2)
|
|
3,306
|
1,829
|
|
10,056
|
9,108
|
Other operating income
adjustments
|
|
—
|
—
|
|
—
|
34,400
|
Restructuring
charges
|
|
30,596
|
4,580
|
|
47,061
|
10,623
|
Income tax
adjustments
|
|
(7,339)
|
(8,367)
|
|
(28,249)
|
(33,235)
|
Non-GAAP net
income
|
|
$
63,944
|
$
52,760
|
|
$
348,010
|
$
319,908
|
|
|
|
|
|
|
|
(1) Stock-based
compensation included in above line items:
|
|
|
|
|
|
|
Cost of products and
services
|
|
$
388
|
$
413
|
|
$
1,697
|
$
1,819
|
Research and
development
|
|
9,643
|
8,632
|
|
39,472
|
37,061
|
Sales and
marketing
|
|
9,279
|
9,568
|
|
40,038
|
41,326
|
General and
administrative
|
|
8,885
|
8,349
|
|
37,279
|
34,719
|
|
|
|
|
|
|
|
(2) Amortization of
acquisition-related intangibles included in above line
items:
|
|
|
|
|
|
|
Cost of
licensing
|
|
$
62
|
$
61
|
|
$
248
|
$
1,464
|
Cost of products and
services
|
|
650
|
851
|
|
3,248
|
3,109
|
Research and
development
|
|
—
|
124
|
|
253
|
507
|
Sales and
marketing
|
|
721
|
793
|
|
3,137
|
3,772
|
General and
administrative
|
|
1,873
|
—
|
|
3,170
|
256
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
Fiscal Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
September
29,
2023
|
September
30,
2022
|
|
September
29,
2023
|
September
30,
2022
|
GAAP diluted earnings
per share
|
|
$
0.09
|
$
0.28
|
|
$
2.05
|
$
1.81
|
Stock-based
compensation
|
|
0.29
|
0.27
|
|
1.21
|
1.13
|
Amortization of
acquisition-related intangibles
|
|
0.03
|
0.02
|
|
0.10
|
0.09
|
Other operating income
adjustments
|
|
—
|
—
|
|
—
|
0.34
|
Restructuring
charges
|
|
0.31
|
0.05
|
|
0.48
|
0.10
|
Income tax
adjustments
|
|
(0.07)
|
(0.08)
|
|
(0.28)
|
(0.33)
|
Non-GAAP diluted
earnings per share
|
|
$
0.65
|
$
0.54
|
|
$
3.56
|
$
3.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - diluted (in thousands)
|
|
97,678
|
98,461
|
|
97,733
|
101,983
|
|
|
|
|
|
|
|
The following tables
present a reconciliation between GAAP and non-GAAP versions of the
estimated financial measures for the first quarter of fiscal 2024
and full year fiscal 2024 included in this release:
|
|
|
|
|
|
|
|
Operating expenses
(in millions):
|
|
|
Q1
2024
|
|
|
Fiscal
2024
|
GAAP operating expenses
(low - high end of range)
|
|
|
$220 - $230
|
|
|
$885 - $895
|
Stock-based
compensation
|
|
|
(32)
|
|
|
(128)
|
Amortization of
acquisition-related intangibles
|
|
|
(3)
|
|
|
(12)
|
Restructuring
charges
|
|
|
(5)
|
|
|
(5)
|
Non-GAAP operating
expenses (low - high end of range)
|
|
|
$180 - $190
|
|
|
$740 - $750
|
|
|
|
|
|
|
|
Operating
margin:
|
|
|
|
|
Fiscal
2024
|
GAAP operating
margin
|
|
|
|
|
|
20% +/-
|
Stock-based
compensation
|
|
|
|
|
|
10 %
|
Amortization of
acquisition-related intangibles
|
|
|
|
|
|
1 %
|
Restructuring
charges
|
|
|
|
|
|
1 %
|
Non-GAAP operating
margin
|
|
|
|
|
|
32% +/-
|
|
|
|
|
|
|
|
Effective tax
rate:
|
|
|
|
|
|
Q1
2024
|
GAAP effective tax
rate
|
|
|
|
|
|
23 %
|
Stock-based
compensation (low - high end of range)
|
|
|
|
|
|
(2%) - (0%)
|
Amortization of
acquisition-related intangibles (low - high end of
range)
|
|
|
|
|
|
(1%) - 0%
|
Restructuring charges
(low - high end of range)
|
|
|
|
|
|
(1%) - 1%
|
Non-GAAP effective tax
rate
|
|
|
|
|
|
20 %
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
Q1
2024
|
|
Fiscal
2024
|
|
|
Low
|
High
|
|
Low
|
High
|
GAAP diluted earnings
per share
|
|
$
0.44
|
$
0.59
|
|
$
2.30
|
$
2.45
|
Stock-based
compensation
|
|
0.34
|
0.34
|
|
1.31
|
1.31
|
Amortization of
acquisition-related intangibles
|
|
0.04
|
0.04
|
|
0.14
|
0.14
|
Restructuring
charges
|
|
0.05
|
0.05
|
|
0.05
|
0.05
|
Income tax
adjustments
|
|
(0.07)
|
(0.07)
|
|
(0.20)
|
(0.20)
|
Non-GAAP diluted
earnings per share
|
|
$
0.80
|
$
0.95
|
|
$
3.60
|
$
3.75
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - diluted (in millions)
|
|
98
|
98
|
|
98
|
98
|
Investor Contact:
Peter
Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
Rachel
Lowery
media@dolby.com
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SOURCE Dolby Laboratories, Inc.