Dolby Laboratories Reports Third Quarter Fiscal 2021 Financial Results

(August 2, 2021) – Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2021. For the third quarter, Dolby reported total revenue of $286.8 million, compared to $246.9 million for the third quarter of fiscal 2020.

“With the launch of Dolby Atmos on Apple Music and Comcast delivering the Tokyo Olympics in Dolby Vision and Dolby Atmos, more people around the world are enjoying the Dolby experience than ever before,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “As we increase our presence across a broader range of content, we are creating more reasons for deeper adoption of Dolby within devices, driving our future growth opportunities.”

Third quarter GAAP net income was $54.6 million, or $0.52 per diluted share, compared to GAAP net income of $67.3 million, or $0.66 per diluted share, for the third quarter of fiscal 2020. On a non-GAAP basis, third quarter net income was $74.8 million, or $0.71 per diluted share, compared to $87.5 million, or $0.86 per diluted share for the third quarter of fiscal 2020. Third quarter cash flows from operations was $172.4 million, compared to $134.3 million for the third quarter of fiscal 2020. A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

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. Since the initial outbreak of COVID-19, 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.

We expect continued uncertainty in global financial markets. Dolby’s financial results for the third quarter of fiscal 2021 rely on estimates of royalty-based revenue that take into consideration the macroeconomic effect of global events, including COVID-19, which may impact supply chain activities and consumer demand for electronic products.

Dividend
Today, Dolby announced a cash dividend of $0.22 per share of Class A and Class B common stock, payable on August 19, 2021, to stockholders of record as of the close of business on August 11, 2021.

Stock Repurchase Program
Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $387 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.

Financial Outlook
The volume of shipments, aggregated across various end markets and devices, continues to be impacted and difficult to predict because of economic uncertainty due to COVID-19. The global cinema market has been adversely impacted by COVID-19, and it remains uncertain when and where cinemas will resume operating at full capacity.

Our actual results could differ materially from the estimates we are providing due in part to the challenging economic environment and highly uncertain effects of COVID-19. The estimates we are providing for future periods reflect certain assumptions about the potential impact of COVID-19, based upon a consideration of external and internal data and information. 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 third quarter of fiscal 2021, filed on or around the date hereof.

Fourth Quarter Fiscal 2021
Dolby is providing the following estimates for its fourth quarter of fiscal 2021:

  • Total revenue is estimated to range from $280 million to $310 million
  • Gross margin percentages are anticipated to range from 88% to 89% on a GAAP basis and from 89% to 90% on a non-GAAP basis
  • Operating expenses are anticipated to range from $216 million to $226 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis
  • Effective tax rate is anticipated to range from 19% to 20% on both a GAAP and non-GAAP basis
  • Diluted earnings per share is anticipated to range from $0.25 to $0.40 on a GAAP basis and from $0.47 to $0.62 on a non-GAAP basis
  • Second Half of Fiscal 2021
    Dolby is also providing the following estimate for its second half of fiscal 2021:

  • Total revenue is estimated to range from $570 million to $600 million
  • Full Year Fiscal 2021
    Dolby is also providing the following estimates for its fiscal year 2021:

  • Total revenue is estimated to range from $1.28 billion to $1.31 billion
  • Gross margin percentages are anticipated to range from 89% to 90% on a GAAP basis and from 90% to 91% on a non-GAAP basis
  • Operating expenses are anticipated to range from $810 million to $820 million on a GAAP basis and from $710 million to $720 million on a non-GAAP basis
  • Diluted earnings per share is anticipated to range from $2.79 to $2.94 on a GAAP basis and from $3.57 to $3.72 on a non-GAAP basis
  • For the full report, visit Dolby’s 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.

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