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Dolby fiscal 1Q net falls on higher expenses

SAN FRANCISCO (AP) -- Dolby Laboratories Inc. said Tuesday that fiscal first-quarter net income fell almost 30 percent as expenses jumped. However, revenue came in better than Wall Street expected.

The entertainment technology company earned $51.3 million, or 50 cents per share, for the quarter that ended Dec. 28. That was down from $73.2 million, or 67 cents per share, during the same quarter a year ago.

Revenue rose 1 percent to $236.6 million.

Analysts surveyed by FactSet expected a profit of 46 cents per share on revenue of $222.3 million.

The company said it would have earned 64 cents per share on an adjusted basis — excluding one-time items — down from 76 cents per share a year earlier.

Operating expenses rose 26 percent to almost $144 million. That included a jump in research and development, up 29 percent to $42.4 million, and sales and marketing expenses that rose 33 percent to $58.4 million.

Dolby predicted fiscal second-quarter revenue of $240 million to $250 million, with earnings of 53 to 60 cents per share. Analysts estimated second-quarter profit of 64 cents per share on revenue of $250.8 million.

For all of Dolby's fiscal 2013, which ends in September, the company expects revenue of $910 million to $950 million. Analysts forecast $917.7 million.

Dolby shares fell 13 cents to close at $31.75.