On Thursday, Feb. 1, Motley Fool Stock Advisor recommendation Dolby Labs (NYSE:DLB) released Q1 2007 earnings for the period ending Dec. 29.

  • Revenues increased 15% to $104.4 million.
  • Profits rose 73% to $29.9 million, or $0.27 per share.
  • Portable and standard DVD players continued to drive licensing revenues higher, as did notebook PCs.
  • Dolby Labs has a four-star rating at Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2007

Q1 2006

Change

Sales

$103,920

$104,442

$91,025

14.7%

Net Profit

--

$29,893

$17,269

73.1%

EPS

$0.21

$0.27

$0.16

68.8%

Diluted Shares

--

112,767

110,190

2.3%

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

81.78%

75.64%

6.18

Operating Margin

37.60%

26.78%

10.82

Net Margin

28.62%

18.97%

9.65

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$528,394

$404,500

30.6%

Accounts Rec.

$16,886

$30,381

(44.4%)

Inventory

$11,585

$10,409

11.3%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$81,130

$65,487

23.9%

Long-Term Debt

$10,697

$11,679

(8.4%)

Learn the ways of the balance sheet.

Cash Flow Highlights
No cash flow statement was provided in the press release.

Find out why Fools always follow the money.

Related Companies:

  • DivX (NASDAQ:DIVX)
  • Eastman Kodak (NYSE:EK)
  • Q Sound (NASDAQ:QSND)
  • SRS Labs (NASDAQ:SRSL)

Related Foolishness:

Dolby is a recommendation of Motley Fool Stock Advisor. A 30-day guest pass gives you full access to the high-volume reason why it made the cut and is beating the market.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Rich Duprey owned shares of Dolby but had no positions in any of the other companies mentioned in the article. Fool rules are here.