On Jan. 31, media technologist Dolby Labs
- 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
seems to have won, and Toshiba has apparently lost -- but Dolby is just happy to see the rivalry wrapped up either way.(NYSE: SNE)
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$150.2 |
$104.4 |
44.0% |
Net Profit |
$47.7 |
$29.9 |
59.5% |
Earnings Per Share |
$0.42 |
$0.27 |
55.6% |
Diluted Shares |
114.7 |
112.8 |
1.7% |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
88.0% |
81.8% |
6.2 |
Operating Margin |
44.8% |
37.6% |
7.2 |
Net Margin |
31.7% |
28.6% |
3.1 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + Short-Term Investments |
$481.0 |
$528.4 |
(9.0%) |
Accounts Receivable |
$38.0 |
$12.4 |
205.7% |
Inventory |
$14.6 |
$11.6 |
25.9% |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Long-Term Debt |
$9.2 |
$10.7 |
(13.9%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Cash From Operations |
$76.0 |
$47.2 |
61.1% |
Capital Expenditures |
$4.0 |
$1.8 |
122.5% |
Free Cash Flow |
$72.0 |
$45.4 |
58.7% |
$47.7 |
$31.3 |
52.2% |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Dolby Laboratories |
$4,739 |
38.8 |
|
RealNetworks |
$865 |
12.1 |
|
DivX |
$493 |
39.0 |
|
DTS |
$400 |
N/A |
|
Sonic Solutions |
$233 |
13.6 |
Keep your partners close and the competition in your vest pocket.
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