Dolby Laboratories Reports Second Quarter Fiscal 2022 Financial Results

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the second quarter of fiscal 2022
San Francisco, CA ( May 5, 2022 ) -

Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the second quarter of fiscal 2022. For the second quarter, Dolby reported total revenue of $334.4 million, compared to $319.6 million for the second quarter of fiscal 2021.

“We feel confident about our long term growth opportunities despite near term headwinds,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “Our partners continue to enable a growing number of Dolby Vision and Dolby Atmos experiences through content and devices, and we are expanding our business with new immersive experiences through Dolby.io.”

Second quarter GAAP net income was $36.7 million, or $0.36 per diluted share, compared to GAAP net income of $76.2 million, or $0.73 per diluted share, for the second quarter of fiscal 2021. On a non-GAAP basis, second quarter net income was $94.0 million, or $0.92 per diluted share, compared to $94.8 million, or $0.91 per diluted share, for the second quarter of fiscal 2021. Second quarter cash flows from operations was $63.0 million, compared to $83.5 million for the second quarter of fiscal 2021. A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

Recent Business Highlights

  • Vivo will now support the combined Dolby Vision and Dolby Atmos experience in their new tablet.
  • Disney Star will broadcast Indian Premier League cricket in Dolby Atmos.
  • Naver launched “Naver Shopping Live” with Dolby Vision, the world’s first Dolby Vision-capable live commerce content.
  • Popular mobile game PUBG Mobile is now available to play with Dolby Atmos.

    • COVID-19
    Dolby continues to monitor the COVID-19 pandemic and its impact on our company. The safety and well-being of our employees and supporting our communities continue to be priorities. Our revenue continues to be impacted across various markets within licensing and products and services. The implications of COVID-19 on our future results of operations remain uncertain.

    Dolby’s financial results for the second quarter of fiscal 2022 rely on estimates of royalty-based revenue that take into consideration the macroeconomic effect of global events, including COVID-19, supply chain constraints, and consumer demand for electronic products. For more information, see the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2022, filed on or around the date hereof.

    Dividend
    Today, Dolby announced a cash dividend of $0.25 per share of Class A and Class B common stock, payable on May 25, 2022, to stockholders of record as of the close of business on May 17, 2022.

    Financial Outlook – Third Quarter and Full Year of Fiscal 2022
    Our actual results could differ materially from the estimates we are providing due in part to the increased uncertainty from the ongoing implications of the COVID-19 pandemic in Asia, particularly the shutdowns in China, the geopolitical instability in Europe, and continuing concerns around inflation and supply constraints globally. The uncertainty resulting from these factors has greatly reduced our visibility into our future outlook. To the extent possible, the estimates we are 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 we face, and the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2022, filed on or around the date hereof.

    Third Quarter of Fiscal 2022
    Dolby is providing the following estimates for its third quarter of fiscal 2022:

  • Total revenue is estimated to range from $285 million to $310 million.
  • Gross margin percentages are anticipated to range from 88.5% to 89.5% on a GAAP basis and from 89% to 90% on a non-GAAP basis.
  • Operating expenses are anticipated to range from $214 million to $224 million on a GAAP basis and from $185 million to $195 million on a non-GAAP basis.
  • Effective tax rate is anticipated to range from 19% to 20% on a GAAP basis and 18% to 19% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $0.28 to $0.43 on a GAAP basis and from $0.54 to $0.69 on a non-GAAP basis.

    • Full Year Fiscal 2022
    Dolby is also providing the following estimates for its full year fiscal 2022:

  • Total revenue is estimated to range from $1.30 billion to $1.35 billion.
  • Operating expenses are anticipated to range from $905 million to $925 million on a GAAP basis and from $745 million to $765 million on a non-GAAP basis.
  • Operating margin percentages are anticipated to range from 19% to 21% on a GAAP basis and from 32% to 34% on a non-GAAP basis.
  • Effective tax rate is anticipated to range from 16% to 18% on a GAAP basis and 17% to 19% on a non-GAAP basis.
  • Diluted earnings per share is anticipated to range from $1.98 to $2.48 on a GAAP basis and from $3.27 to $3.77 on a non-GAAP basis.

    • For the full report, visit the website here.

    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. We partner 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, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners. DLB-F.