UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On May 4, 2021, Dolby Laboratories, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal quarter ended March 26, 2021. The full text of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
On May 1, 2021, Lewis Chew, Executive Vice President and Chief Financial Officer of Dolby Laboratories, Inc., notified the Company of his anticipated retirement, expected to be effective prior to the end of calendar year 2021. The Company has initiated a search for a new chief financial officer during which Mr. Chew will continue in his role to support the transition.
The Company issued a press release, furnished as Exhibit 99.2, in connection with the announcement of Mr. Chew’s retirement.
The information in this Item 7.01 (including Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Declaration of Dividend
On May 4, 2021, the Company announced a cash dividend of $0.22 per share of Class A and Class B Common Stock, payable on May 25, 2021 to stockholders of record as of the close of business on May 17, 2021.
Disclosure Channels to Disseminate Information
The Company disseminates information to the public about the Company, its products, services and other matters through various channels, including the Company’s website (www.dolby.com), investor relations website (http://investor.dolby.com), SEC filings, press releases, public conference calls and webcasts, in order to achieve broad, non-exclusionary distribution of information to the public. The Company encourages investors and others to review the information it makes public through these channels, as such information could be deemed to be material information.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press Release of Dolby Laboratories, Inc. dated May 4, 2021 | |
| 99.2 | Press Release of Dolby Laboratories, Inc. dated May 4, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dolby Laboratories, Inc. | ||
| Date: May 4, 2021 | By: | /s/ Lewis Chew |
| Lewis Chew | ||
| Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||
EXHIBIT 99.1
Dolby Laboratories Reports Second Quarter Fiscal 2021 Financial Results
SAN FRANCISCO, May 04, 2021 (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the second quarter of fiscal 2021. For the second quarter, Dolby reported total revenue of $319.6 million, compared to $351.8 million for the second quarter of fiscal 2020.
"We continue to see growing momentum in the number of Dolby experiences being enabled by our partners across a broad range of content," said Kevin Yeaman, President and CEO, Dolby Laboratories. "We have expanded our reach within music and gaming, and Dolby.io is opening the door to bring Dolby to more content experiences."
Second quarter GAAP net income was $76.2 million, or $0.73 per diluted share, compared to GAAP net income of $88.5 million, or $0.86 per diluted share, for the second quarter of fiscal 2020. On a non-GAAP basis, second quarter net income was $94.8 million, or $0.91 per diluted share, compared to $106.6 million, or $1.04 per diluted share for the second quarter of fiscal 2020. Second quarter cash flows from operations was $83.5 million, compared to $65.7 million for the second 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 second 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 May 25, 2021, to stockholders of record as of the close of business on May 17, 2021.
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 second quarter of fiscal 2021, filed on or around the date hereof.
Third Quarter Fiscal 2021
Dolby is providing the following estimates for its third quarter of fiscal 2021:
Second Half of Fiscal 2021
Dolby is also providing the following estimate for its second half of fiscal 2021:
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2021 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, May 4, 2021. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-833-789-1331 (or dialing 1-236-714-2740 for international callers), and entering confirmation code 9817368.
A replay of the call will be available from 5:00 p.m. PT on Tuesday, May 4, 2021, until 8:59 p.m. PT on Tuesday, May 11, 2021, by dialing 1-800-585-8367 (international callers can access the replay by dialing 1-416-621-4642) and entering the confirmation code 9817368. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.
Non-GAAP Financial Information
To supplement Dolby's financial statements presented on a GAAP basis, Dolby provides certain non-GAAP financial measures to provide investors with an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations. Specifically, we exclude the following as adjustments from one or more of our non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that we grant. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between our underlying operating results and those of other companies, we exclude stock-based compensation expense.
Amortization of acquisition-related intangibles: We amortize intangible assets acquired in connection with acquisitions. These intangible assets consist of patents and technology, customer relationships, and other intangibles. We record amortization charges relating to these intangible assets in our GAAP financial statements, and we view these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of our acquisitions. As these amortization charges do not directly correlate to our operations during any particular period, and often remain unchanged between reporting periods, we exclude these charges to facilitate an evaluation of our current operating results and comparisons to our past operating performance.
Restructuring charges: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. We exclude restructuring costs, including any adjustments to charges recorded in prior periods, as we believe that these costs are not representative of our normal operating activities and therefore, excluding these amounts enables a more effective comparison to our past operating performance.
Income tax adjustments: We believe that excluding the income tax effect of the aforementioned non-GAAP adjustments provides a more accurate view of our underlying operating results to management and investors.
Other operating income adjustments: We are excluding a one-time gain on the sale of property, which was previously classified as held for sale, finalized during the first quarter of fiscal 2021. The property was 51% owned by the controlling interest, therefore 51% of the gain recognized has been attributed to the controlling interest.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business. Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release, including, but not limited to, statements relating to Dolby's expected financial results for the third quarter and second half of fiscal 2021, our ability to advance our long-term objectives, and future dividend payments are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of COVID-19 on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; consumer demand for products that incorporate Dolby technologies; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; the impact to the overall cinema market, including closures or limitations of cinema capacity and resulting adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; temporary Dolby office closures and other actions to protect Dolby’s workforce; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with trends in the markets in which Dolby operates, including the Broadcast, Mobile, Consumer Electronics, PC, Cinema, and Other Markets; the loss of, or reduction in sales by, a key customer or licensee; pricing pressures; risks that the continued shift in content distribution from optical disc-based and other traditional media to online and streaming media content could result in fewer devices with Dolby technologies or less revenue from such devices; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to the expiration of patents; the timing of Dolby's receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby's ability to develop, maintain, and strengthen relationships with industry participants; Dolby's ability to develop and deliver innovative technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture industry generally; Dolby's ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in our most recent quarterly report on Form 10-Q. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
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
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
| Fiscal Quarter Ended | Fiscal Year-To-Date Ended | ||||||||||||||||
| March 26, 2021 |
March 27, 2020 |
March 26, 2021 |
March 27, 2020 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Licensing | $ | 303,585 | $ | 328,865 | $ | 676,590 | $ | 586,548 | |||||||||
| Products and services | 15,973 | 22,950 | 32,842 | 57,144 | |||||||||||||
| Total revenue | 319,558 | 351,815 | 709,432 | 643,692 | |||||||||||||
| Cost of revenue: | |||||||||||||||||
| Cost of licensing | 16,060 | 13,243 | 29,006 | 25,585 | |||||||||||||
| Cost of products and services | 16,318 | 23,587 | 38,676 | 48,560 | |||||||||||||
| Total cost of revenue | 32,378 | 36,830 | 67,682 | 74,145 | |||||||||||||
| Gross margin | 287,180 | 314,985 | 641,750 | 569,547 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 65,808 | 60,086 | 129,580 | 117,736 | |||||||||||||
| Sales and marketing | 78,046 | 88,485 | 153,491 | 183,603 | |||||||||||||
| General and administrative | 59,398 | 60,800 | 113,852 | 113,329 | |||||||||||||
| Gain on sale of assets | — | — | (13,871 | ) | — | ||||||||||||
| Restructuring charges/(credits) | 741 | (331 | ) | 10,764 | 344 | ||||||||||||
| Total operating expenses | 203,993 | 209,040 | 393,816 | 415,012 | |||||||||||||
| Operating income | 83,187 | 105,945 | 247,934 | 154,535 | |||||||||||||
| Other income/(expense): | |||||||||||||||||
| Interest income | 962 | 4,721 | 1,936 | 9,653 | |||||||||||||
| Interest expense | (167 | ) | (25 | ) | (252 | ) | (97 | ) | |||||||||
| Other income, net | 1,385 | 138 | 2,711 | 1,142 | |||||||||||||
| Total other income | 2,180 | 4,834 | 4,395 | 10,698 | |||||||||||||
| Income before income taxes | 85,367 | 110,779 | 252,329 | 165,233 | |||||||||||||
| Provision for income taxes | (9,022 | ) | (22,105 | ) | (33,294 | ) | (27,968 | ) | |||||||||
| Net income including controlling interest | 76,345 | 88,674 | 219,035 | 137,265 | |||||||||||||
| Less: net income attributable to controlling interest | (128 | ) | (178 | ) | (7,620 | ) | (16 | ) | |||||||||
| Net income attributable to Dolby Laboratories, Inc. | $ | 76,217 | $ | 88,496 | $ | 211,415 | $ | 137,249 | |||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | 0.75 | $ | 0.88 | $ | 2.09 | $ | 1.36 | |||||||||
| Diluted | $ | 0.73 | $ | 0.86 | $ | 2.02 | $ | 1.33 | |||||||||
| Weighted-average shares outstanding: | |||||||||||||||||
| Basic | 101,464 | 100,854 | 101,090 | 100,595 | |||||||||||||
| Diluted | 104,581 | 102,773 | 104,414 | 103,133 | |||||||||||||
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
| March 26, 2021 |
September 25, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,104,570 | $ | 1,071,876 | ||||
| Restricted cash | 8,926 | 8,103 | ||||||
| Short-term investments | 58,582 | 46,948 | ||||||
| Accounts receivable, net | 283,505 | 180,340 | ||||||
| Contract assets, net | 233,379 | 161,357 | ||||||
| Inventories, net | 14,881 | 25,550 | ||||||
| Prepaid expenses and other current assets | 47,305 | 53,022 | ||||||
| Total current assets | 1,751,148 | 1,547,196 | ||||||
| Long-term investments | 42,188 | 52,149 | ||||||
| Property, plant, and equipment, net | 542,702 | 541,963 | ||||||
| Operating lease right-of-use assets | 71,976 | 76,515 | ||||||
| Goodwill and intangible assets, net | 475,179 | 489,376 | ||||||
| Deferred taxes | 135,551 | 118,881 | ||||||
| Other non-current assets | 87,546 | 91,245 | ||||||
| Total assets | $ | 3,106,290 | $ | 2,917,325 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,385 | $ | 12,617 | ||||
| Accrued liabilities | 254,163 | 219,974 | ||||||
| Income taxes payable | 11,087 | 3,260 | ||||||
| Contract liabilities | 20,029 | 15,436 | ||||||
| Operating lease liabilities | 15,313 | 15,822 | ||||||
| Total current liabilities | 308,977 | 267,109 | ||||||
| Non-current contract liabilities | 23,369 | 24,342 | ||||||
| Non-current operating lease liabilities | 61,165 | 65,315 | ||||||
| Other non-current liabilities | 118,559 | 122,154 | ||||||
| Total liabilities | 512,070 | 478,920 | ||||||
| Stockholders’ equity: | ||||||||
| Class A common stock | 59 | 58 | ||||||
| Class B common stock | 41 | 41 | ||||||
| Retained earnings | 2,591,870 | 2,443,138 | ||||||
| Accumulated other comprehensive loss | (4,039 | ) | (10,594 | ) | ||||
| Total stockholders’ equity – Dolby Laboratories, Inc. | 2,587,931 | 2,432,643 | ||||||
| Controlling interest | 6,289 | 5,762 | ||||||
| Total stockholders’ equity | 2,594,220 | 2,438,405 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,106,290 | $ | 2,917,325 | ||||
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
| Fiscal Year-to-Date Ended | ||||||||||||||||||||||
| March 26, 2021 |
March 27, 2020 | |||||||||||||||||||||
| Operating activities: | ||||||||||||||||||||||
| Net income including controlling interest | $ | 219,035 | $ | 137,265 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||
| Depreciation and amortization | 47,399 | 40,212 | ||||||||||||||||||||
| Stock-based compensation | 50,726 | 43,565 | ||||||||||||||||||||
| Amortization of premium on investments | 697 | 334 | ||||||||||||||||||||
| Provision/(benefit) for credit losses | (65 | ) | 2,955 | |||||||||||||||||||
| Deferred income taxes | (16,992 | ) | (15,141 | ) | ||||||||||||||||||
| Gain on sale of assets | (13,871 | ) | — | |||||||||||||||||||
| Other non-cash items affecting net income | (1,847 | ) | 3,753 | |||||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||||
| Accounts receivable, net | (102,791 | ) | (60,870 | ) | ||||||||||||||||||
| Contract assets | (72,197 | ) | (28,086 | ) | ||||||||||||||||||
| Inventories | 10,398 | (5,376 | ) | |||||||||||||||||||
| Operating lease right-of-use assets | 6,809 | (20,102 | ) | |||||||||||||||||||
| Prepaid expenses and other assets | 10,552 | (16,068 | ) | |||||||||||||||||||
| Accounts payable and accrued liabilities | 26,926 | (21,431 | ) | |||||||||||||||||||
| Income taxes, net | 9,982 | 13,238 | ||||||||||||||||||||
| Contract liabilities | 3,589 | 452 | ||||||||||||||||||||
| Operating lease liabilities | (6,987 | ) | 20,099 | |||||||||||||||||||
| Other non-current liabilities | (5,735 | ) | 2,100 | |||||||||||||||||||
| Net cash provided by operating activities | 165,628 | 96,899 | ||||||||||||||||||||
| Investing activities: | ||||||||||||||||||||||
| Purchases of investment securities | (26,449 | ) | (167,292 | ) | ||||||||||||||||||
| Proceeds from sales of investment securities | 4,594 | 109,907 | ||||||||||||||||||||
| Proceeds from maturities of investment securities | 18,620 | 54,599 | ||||||||||||||||||||
| Purchases of property, plant, and equipment | (28,887 | ) | (41,782 | ) | ||||||||||||||||||
| Proceeds from sale of assets | 16,365 | — | ||||||||||||||||||||
| Purchase of intangible assets | — | (2,640 | ) | |||||||||||||||||||
| Net cash used in investing activities | (15,757 | ) | (47,208 | ) | ||||||||||||||||||
| Financing activities: | ||||||||||||||||||||||
| Proceeds from issuance of common stock | 71,157 | 53,986 | ||||||||||||||||||||
| Repurchase of common stock | (110,775 | ) | (101,672 | ) | ||||||||||||||||||
| Payment of cash dividend | (44,574 | ) | (44,336 | ) | ||||||||||||||||||
| Distribution to controlling interest | (7,362 | ) | (283 | ) | ||||||||||||||||||
| Shares repurchased for tax withholdings on vesting of restricted stock | (29,216 | ) | (21,094 | ) | ||||||||||||||||||
| Payment related to prior purchases of intangible assets | — | (91 | ) | |||||||||||||||||||
| Payment of deferred consideration for prior business combination | — | (3,000 | ) | |||||||||||||||||||
| Net cash used in financing activities | (120,770 | ) | (116,490 | ) | ||||||||||||||||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 4,416 | (4,350 | ) | |||||||||||||||||||
| Net increase/(decrease) in cash, cash equivalents, and restricted cash | 33,517 | (71,149 | ) | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,079,979 | 805,593 | ||||||||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,113,496 | $ | 734,444 | ||||||||||||||||||
| GAAP to Non-GAAP Reconciliations | |||||||||||||||||
| (in millions, except per share data; unaudited) | |||||||||||||||||
| The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarter and year-to-date period ended March 26, 2021 and March 27, 2020: | |||||||||||||||||
| Net income: | Fiscal Quarter Ended | Fiscal Year-To-Date Ended | |||||||||||||||
| March 26, 2021 |
March 27, 2020 |
March 26, 2021 |
March 27, 2020 | ||||||||||||||
| GAAP net income | $ | 76.2 | $ | 88.5 | $ | 211.4 | $ | 137.2 | |||||||||
| Stock-based compensation (1) | 24.4 | 21.0 | 50.7 | 43.6 | |||||||||||||
| Amortization of acquisition-related intangibles (2) | 2.5 | 2.4 | 5.0 | 4.6 | |||||||||||||
| Restructuring charges | 0.8 | (0.3 | ) | 10.8 | 0.4 | ||||||||||||
| Income tax adjustments | (9.1 | ) | (5.0 | ) | (23.0 | ) | (13.8 | ) | |||||||||
| Other operating income adjustments | — | — | (6.8 | ) | — | ||||||||||||
| Non-GAAP net income | $ | 94.8 | $ | 106.6 | $ | 248.1 | $ | 172.0 | |||||||||
| (1) Stock-based compensation included in above line items: | |||||||||||||||||
| Cost of products and services | $ | 0.5 | $ | 0.5 | $ | 1.1 | $ | 1.0 | |||||||||
| Research and development | 7.2 | 6.2 | 15.1 | 13.2 | |||||||||||||
| Sales and marketing | 9.1 | 7.7 | 18.9 | 15.9 | |||||||||||||
| General and administrative | 7.6 | 6.6 | 15.6 | 13.5 | |||||||||||||
| (2) Amortization of acquisition-related intangibles included in above line items: | |||||||||||||||||
| Cost of licensing | $ | 0.7 | $ | 1.1 | $ | 1.4 | $ | 1.7 | |||||||||
| Cost of products and services | 0.9 | 0.8 | 1.8 | 1.2 | |||||||||||||
| Research and development | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||||
| Sales and marketing | 0.8 | 0.7 | 1.6 | 1.5 | |||||||||||||
| General and administrative | — | (0.3 | ) | — | — | ||||||||||||
| Diluted earnings per share: | Fiscal Quarter Ended | Fiscal Year-To-Date Ended | |||||||||||||||
| March 26, 2021 |
March 27, 2020 |
March 26, 2021 |
March 27, 2020 | ||||||||||||||
| GAAP diluted earnings per share | $ | 0.73 | $ | 0.86 | $ | 2.02 | $ | 1.33 | |||||||||
| Stock-based compensation | 0.24 | 0.21 | 0.49 | 0.43 | |||||||||||||
| Amortization of acquisition-related intangibles | 0.02 | 0.02 | 0.04 | 0.04 | |||||||||||||
| Restructuring charges | 0.01 | — | 0.11 | 0.01 | |||||||||||||
| Income tax adjustments | (0.09 | ) | (0.05 | ) | (0.22 | ) | (0.13 | ) | |||||||||
| Other operating income adjustments | — | — | (0.06 | ) | — | ||||||||||||
| Non-GAAP diluted earnings per share | $ | 0.91 | $ | 1.04 | $ | 2.38 | $ | 1.68 | |||||||||
| Shares used in computing diluted earnings per share | 105 | 103 | 104 | 103 | |||||||||||||
| The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the third quarter of fiscal 2021 included in this release: | |||||||||||||||||
| Gross margin: | Q3 2021 | ||||||||||||||||
| GAAP gross margin (low - high end of range) | 88% - 89% | ||||||||||||||||
| Stock-based compensation | 0.4 | % | |||||||||||||||
| Amortization of acquisition-related intangibles | 0.6 | % | |||||||||||||||
| Non-GAAP gross margin (low - high end of range) | 89% - 90% | ||||||||||||||||
| Operating expenses: | Q3 2021 | ||||||||||||||||
| GAAP operating expenses (low - high end of range) | $210 - $220 | ||||||||||||||||
| Stock-based compensation | (24 | ) | |||||||||||||||
| Amortization of acquisition-related intangibles | (1 | ) | |||||||||||||||
| Non-GAAP operating expenses (low - high end of range) | $185 - $195 | ||||||||||||||||
| Diluted earnings per share: | Q3 2021 | ||||||||||||||||
| Low | High | ||||||||||||||||
| GAAP diluted earnings per share | $ | 0.15 | $ | 0.30 | |||||||||||||
| Stock-based compensation | 0.24 | 0.24 | |||||||||||||||
| Amortization of acquisition-related intangibles | 0.03 | 0.03 | |||||||||||||||
| Income tax adjustments | (0.05 | ) | (0.05 | ) | |||||||||||||
| Non-GAAP diluted earnings per share | $ | 0.37 | $ | 0.52 | |||||||||||||
| Shares used in computing diluted earnings per share | 104 | 104 | |||||||||||||||
Investor Contact:
Jason Dea
Dolby Laboratories, Inc.
415-357-7002
investor@dolby.com
Media Contact:
Karen Hartquist
Dolby Laboratories, Inc.
415-505-8357
karen.hartquist@dolby.com
EXHIBIT 99.2
Dolby Laboratories Announces Executive Retirement
Executive Vice President and Chief Financial Officer, Lewis Chew to retire later this year
SAN FRANCISCO, May 04, 2021 (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced that after more than a 30 year career of financial leadership, Lewis Chew, Executive Vice President and Chief Financial Officer has decided to retire later this year and focus more time on his family. The company is initiating a global search to identify its next Chief Financial Officer. During this period, Lewis will continue in his role to support the transition.
“Lewis is a distinguished financial leader who has made significant contributions to Dolby over the past nine years,” said Kevin Yeaman, Dolby Laboratories, President and CEO. “While Lewis won’t be retiring until later this year, I want to thank him now for the impact he has made on Dolby and the strong team he has built and wish him the best in his retirement.”
Lewis has served as the company’s Chief Financial Officer since 2012. During his tenure, Lewis played an integral role in building on the company’s strong financial position, navigating new business models, and supporting the expansion of Dolby experiences.
“It’s been an honor to be a part of Dolby,” said Lewis Chew, Dolby Laboratories, Executive Vice President and Chief Financial Officer. “I’m proud of the teams and all the ways we’ve supported expanding Dolby experiences and have the utmost confidence in the company’s continued future success.”
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-G
Investor Contact:
Jason Dea
Dolby Laboratories
415-357-7002
investor@dolby.com
Media Contact:
Natalia Sandin
Dolby Laboratories
650-201-8814
natalia.sandin@dolby.com
Cover |
May 01, 2021 |
|---|---|
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | May 01, 2021 |
| Entity File Number | 001-32431 |
| Entity Registrant Name | Dolby Laboratories, Inc. |
| Entity Central Index Key | 0001308547 |
| Entity Tax Identification Number | 90-0199783 |
| Entity Incorporation, State or Country Code | DE |
| Entity Address, Address Line One | 1275 Market Street |
| Entity Address, City or Town | San Francisco |
| Entity Address, State or Province | CA |
| Entity Address, Postal Zip Code | 94103-1410 |
| City Area Code | 415 |
| Local Phone Number | 558-0200 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Class A common stock, $0.001 par value |
| Trading Symbol | DLB |
| Security Exchange Name | NYSE |
| Entity Emerging Growth Company | false |