By
Anders Bylund (TMF Zahrim)
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More Articles
February 1, 2008
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On Jan. 31, media technologist Dolby Labs (NYSE: DLB ) released first-quarter 2008 earnings for the period ended Dec. 28.
- Most of the revenue growth came from a positively exploding licensing division, which grew sales by 49% over last year. Meanwhile, the cost to produce and maintain those licensing assets shrank by 57%. Neat trick, that -- not to mention profitable.
- Dolby is enjoying the rise of the notebook computer, because consumers don't much mind paying a little more for a laptop that can double as a high-end, portable media center with Dolby technologies inside.
- The company also collects royalties on every Blu-ray and HD-DVD player sold. Sony (NYSE: SNE ) seems to have won, and Toshiba has apparently lost -- but Dolby is just happy to see the rivalry wrapped up either way.
(Figures in millions, except per-share data)
Income Statement Highlights
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Q1 2008
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Q1 2007
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Change
|
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Sales
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$150.2
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$104.4
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44.0%
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Net Profit
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$47.7
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$29.9
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59.5%
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Earnings Per Share
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$0.42
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$0.27
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55.6%
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Diluted Shares
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114.7
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112.8
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1.7%
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Get back to basics with the income statement.
Margin Checkup
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Q1 2008
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Q1 2007
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Change*
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Gross
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88.0%
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81.8%
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6.2
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Operating
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44.8%
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37.6%
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7.2
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Net
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31.7%
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28.6%
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3.1
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*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
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Assets
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Q1 2008
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Q1 2007
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Change
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Cash + Short-Term Investments
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$481.0
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$528.4
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(9.0%)
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Accounts Receivable
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$38.0
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$12.4
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205.7%
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Inventory
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$14.6
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$11.6
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25.9%
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Liabilities
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Q1 2008
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Q1 2007
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Change
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Long-Term Debt
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$9.2
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$10.7
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(13.9%)
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The balance sheet reflects the company's health.
Cash Flow Highlights
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Q1 2008
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Q1 2007
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Change
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Cash From Operations
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$76.0
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$47.2
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61.1%
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Capital Expenditures
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$4.0
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$1.8
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122.5%
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Free
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$72.0
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$45.4
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58.7%
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Owner Earnings
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$47.7
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$31.3
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52.2%
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Operating culled from the earnings call. and depreciation/amortization were estimated at $4 million each, approximating the worst-case points of recent historical trends. Next time, just give us a , OK?
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap
|
Trailing
|
CAPS Rating
|
|
Dolby Laboratories
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$4,739
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38.8
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*****
|
|
RealNetworks (:RNWK)
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$865
|
12.1
|
**
|
|
DivX (NASDAQ:DIVX)
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$493
|
39.0
|
**
|
|
DTS (NASDAQ:DTSI)
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$400
|
N/A
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*
|
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Sonic Solutions (NASDAQ:SNIC)
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$233
|
13.6
|
**
|
Using the latest reported numbers from Capital IQ, a division of Standard & Poor's.
Keep your partners close and the competition in your vest pocket.
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