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Dolby Laboratories Reports Fourth Quarter and Fiscal 2019 Financial Results

SAN FRANCISCO, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (DLB) today announced the Company's financial results for the fourth quarter and fiscal year that ended September 27, 2019. For the fourth quarter, Dolby reported total revenue of $298.8 million, compared to $240.6 million for the fourth quarter of fiscal 2018. For fiscal 2019, Dolby reported total revenue of $1.24 billion, compared to $1.05 billion for fiscal 2018.

“We achieved solid financial performance in 2019 and continued to build momentum for the combined Dolby Vision and Dolby Atmos experience, highlighted by new offerings from Apple and Disney,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We also introduced Dolby Atmos music, a completely new way for artists to create and fans to experience music, which is now available on Amazon Echo Studio and Amazon Music HD.”

Fourth quarter GAAP net income was $43.9 million, or $0.43 per diluted share, compared to GAAP net income of $26.7 million, or $0.25 per diluted share, for the fourth quarter of fiscal 2018. On a non-GAAP basis, fourth quarter net income was $67.6 million, or $0.66 per diluted share, compared to non-GAAP net income of $23.5 million, or $0.22 per diluted share, for the fourth quarter of fiscal 2018. Fourth quarter cash flows from operations was $130.5 million, compared to $111.7 million for the fourth quarter of fiscal 2018. A complete listing of Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

Fiscal 2019 GAAP net income was $255.2 million, or $2.44 per diluted share, compared to $41.7 million, or $0.39 per diluted share for fiscal 2018. On a non-GAAP basis, fiscal 2019 net income was $334.6 million, or $3.20 per diluted share, compared to $215.8 million, or $2.02 per diluted share, for fiscal 2018. Fiscal 2019 cash flows from operations was $327.7 million, compared to $352.2 million for fiscal 2018.

As previously indicated, Dolby adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) in the first quarter of fiscal 2019, and today’s announced results and the financial outlook are presented in accordance with that new revenue standard. Dolby adopted ASC 606 using the full retrospective transition method, therefore all prior periods are also presented in accordance with the new revenue standard. Included at the end of this press release are financial results for fiscal 2017, fiscal 2018, and the four quarters of fiscal 2018, as adjusted in accordance with ASC 606.

Dividend

Today, Dolby announced a cash dividend of $0.22 per share of Class A and Class B common stock, payable on December 4, 2019, to stockholders of record as of the close of business on November 26, 2019.

Financial Outlook

First Quarter Fiscal 2020

Dolby is providing the following estimates for its first quarter of fiscal 2020:

  • Total revenue will range from $275 million to $295 million
  • Gross margin percentages will be approximately 88% on a GAAP basis and approximately 89% on a non-GAAP basis
  • Operating expenses will range from $214 million to $220 million on a GAAP basis and from $192 million to $198 million on a non-GAAP basis
  • Effective tax rate will range from 18% to 21% on both a GAAP basis and non-GAAP basis
  • Diluted earnings per share will range from $0.27 to $0.33 on a GAAP basis and from $0.45 to $0.51 on a non-GAAP basis

Fiscal Year 2020

Dolby is providing the following estimates for its fiscal year 2020:

  • Total revenue will range from $1.30 billion to $1.35 billion
  • Gross margin percentages will range from 87% to 88% on a GAAP basis and from 88% to 89% on a non-GAAP basis
  • Operating expenses will range from $829 million to $849 million on a GAAP basis and from $740 million to $760 million on a non-GAAP basis
  • Effective tax rate will range from 18% to 21% on both a GAAP basis and non-GAAP basis
  • Diluted earnings per share will range from $2.64 to $2.74 on a GAAP basis and from $3.40 to $3.50 on a non-GAAP basis

Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss fourth quarter and fiscal 2019 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, November 14, 2019. Access to the teleconference will be available over the Internet from http://investor.dolby.com/event-calendar or by dialing 1-888-394-8218. International callers can access the conference call at 1-323-701-0225.

A replay of the call will be available from 5:00 p.m. PT on Thursday, November 14, 2019, until 8:59 p.m. PT on Thursday, November 21, 2019, by dialing 1-844-512-2921 (international callers can access the replay by dialing 1-412-317-6671) and entering the confirmation code 1707606. An archived version of the teleconference will also be available on the Dolby website, www.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 and complex 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.

Impact from Tax Reform: The enactment of the U.S. Tax Cuts and Jobs Act (Tax Reform), and any related amendments or revisions, requires certain discrete and infrequent charges that are not representative of current operating results and therefore, excluding these amounts enables a more effective comparison to our past operating performance.

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 first quarter of fiscal 2020 and fiscal 2020, 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 projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: 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 associated with the rate at which OEMs include optical disc playback in Windows® devices and the rate of consumer adoption of Windows operating systems; risks that the continued shift from disc-based media to online media content could result in fewer devices with Dolby technologies; risks associated with the effects of macroeconomic conditions, including trends in consumer spending; 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; the impact of Tax Reform; 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 expand its business beyond audio technologies to other technologies; 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 its 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 (DLB) is based in San Francisco with offices in over 20 countries around the globe. Dolby transforms the science of sight and sound into spectacular experiences. Through innovative research and engineering, we create breakthrough experiences for billions of people worldwide through a collaborative ecosystem spanning artists, businesses, and consumers. The experiences people have - with Dolby Cinema, Dolby Vision, Dolby Atmos, Dolby Audio, Dolby Dimension, and Dolby Voice - revolutionize entertainment and communications at the cinema, on the go, in the home, and at work.

Dolby, Dolby Atmos, Dolby Audio, Dolby Cinema, Dolby Dimension, Dolby Vision, Dolby Voice, 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)

  Fiscal Quarter Ended   Fiscal Year-To-Date Ended
  September 27,
2019
September 28, 2018
(as adjusted)
  September 27,
2019
September 28, 2018
(as adjusted)
Revenue:          
Licensing $ 264,796   $ 214,699     $ 1,107,280   $ 940,777  
Products and services 34,031   25,872     134,340   113,823  
Total revenue 298,827   240,571     1,241,620   1,054,600  
           
Cost of revenue:          
Cost of licensing 16,770   10,603     57,531   42,583  
Cost of products and services 29,190   20,656     103,323   84,979  
Total cost of revenue 45,960   31,259     160,854   127,562  
           
Gross margin 252,867   209,312     1,080,766   927,038  
           
Operating expenses:          
Research and development 60,191   60,500     237,871   236,794  
Sales and marketing 82,149   85,760     343,835   309,762  
General and administrative 53,013   50,498     205,425   197,423  
Restructuring charges/(credits) 6,294       36,558   (446 )
Total operating expenses 201,647   196,758     823,689   743,533  
           
Operating income 51,220   12,554     257,077   183,505  
           
Other income/expense:          
Interest income 5,689   5,810     24,919   18,970  
Interest expense (64 ) (47 )   (170 ) (198 )
Other income/(expense), net (594 ) (464 )   481   (5,903 )
Total other income 5,031   5,299     25,230   12,869  
           
Income before income taxes 56,251   17,853     282,307   196,374  
Provision for income taxes (12,316 ) 9,001     (26,802 ) (154,069 )
Net income including controlling interest 43,935   26,854     255,505   42,305  
Less: net (income) attributable to controlling interest (17 ) (138 )   (354 ) (559 )
Net income attributable to Dolby Laboratories, Inc. $ 43,918   $ 26,716     $ 255,151   $ 41,746  
           
Net income per share:          
Basic $ 0.44   $ 0.26     $ 2.51   $ 0.40  
Diluted $ 0.43   $ 0.25     $ 2.44   $ 0.39  
Weighted-average shares outstanding:          
Basic 100,481   103,349     101,629   103,377  
Diluted 102,945   106,794     104,572   106,978  

DOLBY LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)

  September 27,
2019
September 28, 2018
(as adjusted)
ASSETS    
Current assets:    
Cash and cash equivalents $ 797,210   $ 918,063  
Restricted cash 8,383   7,187  
Short-term investments 119,146   178,138  
Accounts receivable, net 189,115   166,133  
Contract assets 195,651   165,959  
Inventories, net 32,331   26,206  
Prepaid expenses and other current assets 39,704   34,890  
Total current assets 1,381,540   1,496,576  
Long-term investments 179,587   187,782  
Property, plant, and equipment, net 537,432   514,182  
Goodwill and intangible assets, net 515,720   512,001  
Deferred taxes 114,075   74,766  
Other non-current assets 93,395   80,080  
Total assets $ 2,821,749   $ 2,865,387  
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $ 15,212   $ 21,922  
Accrued liabilities 268,144   243,128  
Income taxes payable 3,506   2,680  
Contract liabilities 19,991   17,468  
Total current liabilities 306,853   285,198  
Non-current contract liabilities 24,404   25,887  
Other non-current liabilities 177,462   183,799  
Total liabilities 508,719   494,884  
     
Stockholders’ equity:    
Class A common stock 58   61  
Class B common stock 41   41  
Additional paid-in capital   66,127  
Retained earnings 2,327,877   2,313,539  
Accumulated other comprehensive (loss) (20,625 ) (15,832 )
Total stockholders’ equity – Dolby Laboratories, Inc. 2,307,351   2,363,936  
Controlling interest 5,679   6,567  
Total stockholders’ equity 2,313,030   2,370,503  
Total liabilities and stockholders’ equity $ 2,821,749   $ 2,865,387  

DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)

  Fiscal Year-To-Date Ended
  September 27,
2019
September 28, 2018
(as adjusted)
Operating activities:    
Net income including controlling interest $ 255,505   $ 42,305  
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 85,123   81,283  
Stock-based compensation 76,580   71,249  
Amortization of premium on investments 358   2,473  
Provision for doubtful accounts 4,523   2,413  
Deferred income taxes (40,191 ) 61,059  
Restructuring charge for exit of leased facility 33,251    
Other non-cash items affecting net income 6,952   7,570  
Changes in operating assets and liabilities:    
Accounts receivable, net (27,492 ) 100,129  
Contract assets (29,708 ) (2,502 )
Inventories (16,098 ) (6,602 )
Prepaid expenses and other assets (6,200 ) (52,485 )
Accounts payable and accrued liabilities 169   (29,019 )
Income taxes, net (2,186 ) 39,738  
Contract liabilities 1,084   (59 )
Other non-current liabilities (13,996 ) 34,650  
Net cash provided by operating activities 327,674   352,202  
     
Investing activities:    
Purchases of investment securities (265,361 ) (174,195 )
Proceeds from sales of investment securities 200,636   123,058  
Proceeds from maturities of investment securities 136,951   237,432  
Purchases of property, plant, and equipment (96,281 ) (72,814 )
Payments for business acquisitions, net of cash acquired (14,919 ) (22,852 )
Purchase of intangible assets (17,255 ) (12,543 )
Net cash (used in)/provided by investing activities (56,229 ) 78,086  
     
Financing activities:    
Proceeds from issuance of common stock 57,346   106,162  
Repurchase of common stock (340,585 ) (150,470 )
Payment of cash dividend (77,496 ) (66,155 )
Distribution to controlling interest (1,015 ) (1,022 )
Shares repurchased for tax withholdings on vesting of restricted stock (22,788 ) (22,144 )
Payment of deferred consideration for prior business combination (743 )  
Net cash used in financing activities (385,281 ) (133,629 )
     
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash (5,821 ) (5,777 )
Net increase/(decrease) in cash, cash equivalents, and restricted cash (119,657 ) 290,882  
Cash, cash equivalents, and restricted cash at beginning of period 925,250   634,368  
Cash, cash equivalents, and restricted cash at end of period $ 805,593   $ 925,250  


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 fourth quarter of fiscal 2019 and 2018 and fiscal 2019 and 2018:
           
Net income: Fiscal Quarter Ended   Fiscal Year Ended
  September 27,
2019
September 28, 2018
(as adjusted)
  September 27,
2019
September 28, 2018
(as adjusted)
GAAP net income $ 43.9   $ 26.7     $ 255.2   $ 41.7  
Stock-based compensation (1) 17.0   17.8     76.6   71.2  
Amortization of acquisition-related intangibles (2) 3.1   1.9     9.9   7.7  
Restructuring charges/(credits), net 6.3       36.5   (0.4 )
Impact of Tax Reform   (33.1 )   (18.2 ) 104.5  
Income tax adjustments (2.7 ) 10.2     (25.4 ) (8.9 )
Non-GAAP net income $ 67.6   $ 23.5     $ 334.6   $ 215.8  
           
(1) Stock-based compensation included in above line items:          
Cost of products and services 0.4 0.4   1.7 1.6
Research and development 5.3 5.0   23.2 19.5
Sales and marketing 5.8 6.8   28.1 25.0
General and administrative 5.5 5.6   23.6 25.1
           
(2) Amortization of acquisition-related intangibles included in above line items:          
Cost of licensing 0.6 0.6   2.4 2.5
Cost of products and services 1.2 0.5   3.1 2.2
Research and development 0.1 0.1   0.2 0.3
Sales and marketing 1.3 0.7   4.2 2.7
General and administrative -0.1 0.0   0.0 0.0
           
Diluted earnings per share: Fiscal Quarter Ended   Fiscal Year Ended
  September 27,
2019
September 28, 2018
(as adjusted)
  September 27,
2019
September 28, 2018
(as adjusted)
GAAP diluted earnings per share $ 0.43   $ 0.25     $ 2.44   $ 0.39  
Stock-based compensation 0.17   0.16     0.73   0.67  
Amortization of acquisition-related intangibles 0.03   0.02     0.09   0.07  
Restructuring charges/(credits), net 0.06       0.35    
Impact of Tax Reform   (0.31 )   (0.17 ) 0.98  
Income tax adjustments (0.03 ) 0.10     (0.24 ) (0.09 )
Non-GAAP diluted earnings per share $ 0.66   $ 0.22     $ 3.20   $ 2.02  
           
Shares used in computing diluted earnings per share 103   107     105   107  
           
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the first quarter of fiscal 2020 and fiscal year 2020 included in this release:      
           
Gross margin: Q1 2020 Fiscal 2020      
GAAP gross margin (low - high end of range) 88 % 87% - 88%      
Stock-based compensation 0.2 % 0.2 %      
Amortization of acquisition-related intangibles 0.8 % 0.8 %      
Non-GAAP gross margin (low - high end of range) 89 % 88% - 89%      
           
Operating expenses: Q1 2020 Fiscal 2020      
GAAP operating expenses (low - high end of range) $214 - $220 $829 - $849      
Stock-based compensation (21 ) (84 )      
Amortization of acquisition-related intangibles (1 ) (5 )      
Non-GAAP operating expenses (low - high end of range) $192 - $198 $740 - $760      
           
Diluted earnings per share: Q1 2020   Fiscal 2020
  Low High   Low High
GAAP diluted earnings per share $ 0.27   $ 0.33     $ 2.64   $ 2.74  
Stock-based compensation 0.21   0.21     0.84   0.84  
Amortization of acquisition-related intangibles 0.02   0.02     0.09   0.09  
Income tax adjustments (0.05 ) (0.05 )   (0.17 ) (0.17 )
Non-GAAP diluted earnings per share $ 0.45   $ 0.51     $ 3.40   $ 3.50  
           
Shares used in computing diluted earnings per share 104   104     103   103  


Revenue Standard Adoption

The following tables contain restated summarized financial information resulting from the adoption of ASC 606. In the first quarter of fiscal 2019 we adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606), the new revenue recognition standard. ASC 606 replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard. The Company adopted the new revenue standard utilizing the full retrospective method. Under this method, the new revenue standard is applied retrospectively to each prior period reported.

DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)

  As adjusted to reflect ASC 606
  Fiscal Quarter Ended Fiscal Year Ended
  December 29, 2017 March 30, 2018 June 29, 2018 September 28, 2018 September 28, 2018 September 29, 2017
Revenue:            
Licensing $ 270,172   $ 272,135   $ 183,771   $ 214,699   $ 940,777   $ 965,864  
Products and services 29,355   27,587   31,009   25,872   113,823   114,313  
Total revenue 299,527   299,722   214,780   240,571   1,054,600   1,080,177  
             
Cost of revenue:            
Cost of licensing 9,259   10,610   12,111   10,603   42,583   39,329  
Cost of products and services 21,634   20,417   22,272   20,656   84,979   79,200  
Total cost of revenue 30,893   31,027   34,383   31,259   127,562   118,529  
             
Gross margin 268,634   268,695   180,397   209,312   927,038   961,648  
             
Operating expenses:            
Research and development 56,444   59,493   60,357   60,500   236,794   233,312  
Sales and marketing 70,149   74,019   79,834   85,760   309,762   296,661  
General and administrative 48,285   50,747   47,893   50,498   197,423   171,686  
Restructuring charges/(credits) (197 ) (167 ) (82 )   (446 ) 12,856  
Total operating expenses 174,681   184,092   188,002   196,758   743,533   714,515  
             
Operating income/(Loss) 93,953   84,603   (7,605 ) 12,554   183,505   247,133  
             
Other income/expense:            
Interest income 3,781   3,892   5,487   5,810   18,970   9,577  
Interest expense (35 ) (29 ) (87 ) (47 ) (198 ) (127 )
Other income/(expense), net (1,152 ) (684 ) (3,603 ) (464 ) (5,903 ) (1,438 )
Total other income/expense 2,594   3,179   1,797   5,299   12,869   8,012  
             
Income (loss) before income taxes 96,547   87,782   (5,808 ) 17,853   196,374   255,145  
Provision for income taxes (149,705 ) (22,432 ) 9,067   9,001   (154,069 ) (48,039 )
Net income (loss) including controlling interest (53,158 ) 65,350   3,259   26,854   42,305   207,106  
Less: net (income) attributable to controlling interest (144 ) (134 ) (143 ) (138 ) (559 ) (625 )
Net income/(loss) attributable to Dolby Laboratories, Inc. $ (53,302 ) $ 65,216   $ 3,116   $ 26,716   $ 41,746   $ 206,481  
             
Net/(loss) income per share:            
Basic (0.52 ) 0.63   0.03   0.26   0.40   2.03  
Diluted (0.52 ) 0.61   0.03   0.25   0.39   2.00  
Weighted-average shares outstanding:            
Basic 102,552   103,771   103,836   103,349   103,377   101,784  
Diluted 102,552   107,001   106,950   106,794   106,978   103,286  

The following table presents the composition of our licensing revenue:

  As adjusted to reflect ASC 606
  Fiscal Quarter Ended Fiscal Year Ended
  December 29, 2017 March 30, 2018 June 29, 2018 September 28, 2018 September 28, 2018 September 29, 2017
Market:            
Broadcast 41 % 33 % 46 % 48 % 41 % 44 %
Mobile 22 % 25 % 11 % 1 % 16 % 15 %
CE 14 % 14 % 15 % 19 % 15 % 13 %
PC 8 % 16 % 9 % 12 % 11 % 13 %
Other 15 % 12 % 19 % 20 % 17 % 15 %
Total revenue 100 % 100 % 100 % 100 % 100 % 100 %

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