Dolby Laboratories, Inc. (DLB) has reported a 72.73 percent jump in profit for the quarter ended Dec. 30, 2016. The company has earned $53.37 million, or $0.51 a share in the quarter, compared with $30.90 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $68.70 million, or $0.66 a share compared with $48.60 million or $0.48 a share, a year ago.
Revenue during the quarter grew 10.57 percent to $266.27 million from $240.81 million in the previous year period. Gross margin for the quarter expanded 111 basis points over the previous year period to 88.75 percent. Total expenses were 75.19 percent of quarterly revenues, down from 83.73 percent for the same period last year. This has led to an improvement of 854 basis points in operating margin to 24.81 percent.
Operating income for the quarter was $66.07 million, compared with $39.19 million in the previous year period.
"We had a strong first quarter and continue to make progress with Dolby Vision, Dolby Cinema, and Dolby Atmos," said Kevin Yeaman, president and chief executive officer, Dolby Laboratories. "We announced our first Dolby Vision TV with Sony, and our first combined Dolby Vision and Dolby Atmos TV with LG. We also opened our 70th Dolby Cinema location."
For the second-quarter 2017, Dolby Laboratories, Inc. projects revenue to be in the range of $265 million to $280 million. The company forecasts diluted earnings per share to be in the range of $0.43 to $0.49. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.58 to $0.64.
For financial year 2017, Dolby Laboratories, Inc. projects revenue to be in the range of $1,060 million to $1,100 million.
Operating cash flow remains almost stable
Dolby Laboratories, Inc. has generated cash of $67.76 million from operating activities during the quarter, up 0.54 percent or $0.37 million, when compared with the last year period.
The company has spent $26.65 million cash to meet investing activities during the quarter as against cash outgo of $79.95 million in the last year period.
The company has spent $39.01 million cash to carry out financing activities during the quarter as against cash outgo of $51.33 million in the last year period.
Cash and cash equivalents stood at $512.84 million as on Dec. 30, 2016, up 9.79 percent or $45.74 million from $467.10 million on Jan. 01, 2016.
Working capital increases
Dolby Laboratories, Inc. has recorded an increase in the working capital over the last year. It stood at $603.84 million as at Dec. 30, 2016, up 11.53 percent or $62.44 million from $541.41 million on Jan. 01, 2016. Current ratio was at 3.91 as on Dec. 30, 2016, up from 3.75 on Jan. 01, 2016.
Cash conversion cycle (CCC) has decreased to 5 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went down to 49 days for the quarter from 54 for the same period last year.
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