Shares of Dolby Laboratories Inc. (NYSE: DLB), the San Francisco, California-based developer of products and technologies that are used in the entertainment industry, surged on Friday after the company reported its second-quarter financial results and signed an agreement with Microsoft Corp. (NASDAQ: MSFT) for the use of its products in Windows 8 operating system.
DLB shares rose to an intra-day high of $45.77 on Friday before finishing the day 17.51% higher at $44.22 on above average volume of 5.93 million.
DLB said that Microsoft will include its Dolby Digital Plus 5.1-channel decoding and two-channel encoding in Windows 8. DLB will be paid a base royalty rate for the use of its products by original equipment manufacturers.
Dolby, however, noted that it does not expect the agreement to affect its fiscal 2012 outlook as Windows 8 is not likely to ship until DLB’s fiscal 2013.
Meanwhile, the company released its second-quarter financial results. DLB reported second-quarter net income of $88.1 million, or $0.81 per share for the quarter, compared with $82.1 million, or $0.72 per share reported for the same period in the previous year. Excluding one-time items, the company posted earnings of $0.91 per share.
Revenue for the quarter rose 4% to $260.3 million.
Analysts surveyed by Thomson Reuters were on average expecting the company to report earnings of $0.75 per share and revenue of $253.5 million.
Dolby also raised its full-year earnings forecast. The company now expects full-year earnings to come in between $2.38 per share and $2.62 per share, up from previous guidance range of $2.31-$2.61. However, DLB lowered its revenue forecast for the full year. The company expects revenue for the full year to come in between $910 million and $960 million, compared with previous forecast of $910-$970 million.
Analysts expect DLB to report full-year earnings of $2.57 per share and revenue of $942.4 million.
Recent Comments