Home > News > Dolby Laboratories (DLB) Q4-2008 Earnings Call Notes

Dolby Laboratories (DLB) Q4-2008 Earnings Call Notes

Press Release
-Revenue $163.1M, up 26% y/y. EPS 42c. FY2008 Revenue of $640.2M, up 33% y/y. EPS $1.74
-FY2009 Guidance of $660-720M. EPS $1.57-1.77. Including $5M restructuring charge that has 3c EPS impact
-$5.81/share net cash

Conference Call
-Long-term objective is to be an essential element in the best entertainment technologies used by professionals and consumers
-Continue to benefit from strong PC notebook demand
-Dolby Digital is the mandated audio standard for digital terrestrial broadcast and de facto standard for satellite and cable
-Dolby Digital is mandated in Blu-ray
-Much of its revenue is from discretionary products and they are not immune to a slowdown in consumer spending
-License growth of 33% y/y and 8% q/q primarily from PC and broadcast markets
-FY08 revenue from PC was over 40% of licensing revenue, broadcast is just under 20%, consume electronics just over 25%

-For guidance, assuming PC unit growth of just under 5%, which includes 20 million net-books, which do not use Vista. On CE, modeling 15% decline in DVD players. Broadcast, flat y/y world wide. Strong growth in set-tops driven by converter boxes
-Microsoft new OS in 2010, can’t comment on any new agreements

-$27.91 is 13Xs forward EPS ex-cash
-One of the best business models out there, could actually grow in 2009 even in a bad recession

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  • http://www.marketfolly.com market folly

    hedge fund Lone Pine Capital picked up a big stake in DLB back in September which I thought was interesting. http://www.marketfolly.com/2008/09/lone-pine-capital-stephen-mandel-files.html

  • http://www.firstadopter.com firstadopter

    Thanks Market Folly. The stock seems to be 25% lower than when they bought it, but the last two earnings reports were pretty solid. Macro concerns and the general market weakness driving it down. I may consider buying it on any dips.