Dolby Laboratories(US:DLB)2025-05-01 20:15Financial Performance - Total revenue for Q2 2025 was $370 million, a 1.4% increase from $365 million in Q2 2024[6] - GAAP net income was $92 million or $0.94 per diluted share, down from $98 million or $1.01 per diluted share in Q2 2024; non-GAAP net income was $131 million or $1.34 per diluted share, up from $123 million or $1.27 per diluted share[6] - Total revenue for the fiscal quarter ended March 28, 2025, was $369,561 thousand, a slight increase from $364,523 thousand in the same quarter of 2024, representing a growth of 1%[20] - Licensing revenue reached $346,006 thousand for the quarter, up from $338,240 thousand year-over-year, with a notable contribution from the mobile market at 29%[26] - Net income attributable to Dolby Laboratories, Inc. for the fiscal quarter was $91,793 thousand, down from $97,830 thousand in the prior year, a decline of 6%[20] - Basic net income per share for the quarter was $0.95, compared to $1.02 in the same quarter of 2024, representing a decrease of 7%[20] Revenue Projections - Dolby expects Q3 2025 total revenue to range from $290 million to $320 million, with licensing revenue estimated between $265 million and $295 million[10] - For the full year of fiscal 2025, total revenue is projected to be between $1.31 billion and $1.38 billion, with licensing revenue estimated at $1.21 billion to $1.28 billion[10] Expenses and Margins - Gross margins are anticipated to be approximately 86% on a GAAP basis and 88% on a non-GAAP basis for Q3 2025[10] - GAAP operating expenses for Q3 2025 range from $225 million to $235 million, with non-GAAP operating expenses ranging from $190 million to $200 million[29] - Total GAAP operating expenses for fiscal 2025 are estimated to be between $905 million and $920 million, while non-GAAP operating expenses are estimated to be between $760 million and $775 million[29] Cash and Assets - Cash and cash equivalents increased to $626,551 thousand as of March 28, 2025, from $482,047 thousand at the end of September 2024, a growth of 30%[22] - Total assets rose to $3,229,036 thousand as of March 28, 2025, compared to $3,109,928 thousand in the previous period, marking an increase of 4%[22] Shareholder Returns - Dolby repurchased approximately 429,000 shares for about $35 million, with $352 million remaining in stock repurchase authorization[6] - The company announced a cash dividend of $0.33 per share, payable on May 21, 2025[5] Economic Outlook - The company acknowledges economic uncertainties affecting its financial outlook, including supply chain constraints and geopolitical instability[7] Product Development - New product launches include support for Dolby Atmos and Dolby Vision in various devices, including the Sky Glass Gen 2 TV and OPPO's Find X8 series[6] - Dolby's partnership with AMC Entertainment will expand to add 40 Dolby Cinema screens by 2027[6] Tax and Earnings Projections - The effective tax rate for Q3 2025 is 23.0% under GAAP and 20.5% under non-GAAP[29] - Full year fiscal 2025 GAAP diluted earnings per share is projected between $2.31 and $2.46, with non-GAAP diluted earnings per share projected between $3.88 and $4.03[29] - GAAP diluted earnings per share for Q3 2025 is projected between $0.26 and $0.41, while non-GAAP diluted earnings per share is projected between $0.62 and $0.77[29] - The effective tax rate for fiscal 2025 is projected to be 22.5% under GAAP and 20.0% under non-GAAP[29] Operating Income - Operating income for the fiscal quarter was $107,763 thousand, slightly down from $108,968 thousand in the same quarter last year, indicating a decrease of 1%[20] - Research and development expenses for the fiscal quarter were $61,707 thousand, slightly down from $62,493 thousand in the same quarter last year[20]