Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Dolby Laboratories (NYSE: DLB) fell as much as 12% on heavy volume after the company reported market-beating financial results for its fiscal first quarter but reduced its guidance for full-year revenue.

So what: Dolby now says it expects to book $930 million to $970 million in fiscal 2011 revenue. Earlier, Dolby forecast $950 million to $990 million. CEO Kevin Yeaman blamed the revision on a slowdown in the PC market.

Now what: Whether that's fair remains to be seen. But having witnessed Dolby's forthcoming offerings at last month's Consumer Electronics Show in Las Vegas, I have a hard time making sense of the sell-off. More immersive video experiences are going to demand more immersive audio, and no one does immersive audio better than Dolby.

But don't take my word for it. The numbers we do have -- the first-quarter results -- were better than Wall Street expected. Revenue improved 9.8% to $242.7 million. Non-GAAP profit jumped 17.2% to $0.75 per share. Analysts were expecting $234.8 million and $0.62, respectively.

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