Dolby Laboratories(DLB) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 FY2025 was $357 million, a 13$316 million in Q1 FY2024[6] - GAAP net income for Q1 FY2025 was $68 million, or$0.70 per diluted share, compared to $67 million, or$0.69 per diluted share in Q1 FY2024[6] - Non-GAAP net income for Q1 FY2025 was $111 million, or$1.14 per diluted share, up from $99 million, or$1.01 per diluted share in Q1 FY2024[6] - Total revenue for the fiscal quarter ended December 27, 2024, was $356.999 million, a 13.1$315.574 million in the same quarter of 2023[20] - Licensing revenue reached $330.479 million, representing a 12.5$293.767 million year-over-year[26] - Operating income increased to $79.880 million, compared to$66.221 million in the prior year, reflecting a 20.5% growth[20] - Net income attributable to Dolby Laboratories, Inc. was $67.822 million, a slight increase from$66.981 million, with diluted earnings per share rising to $0.70 from$0.69[20][27] - Dolby's non-GAAP net income attributable to the company was $110.869 million, compared to$98.640 million in the same quarter last year, indicating strong underlying performance[27] Future Projections - Dolby expects total revenue for Q2 FY2025 to range from $355 million to$385 million[10] - Licensing revenue for Q2 FY2025 is estimated to be between $330 million and$360 million[10] - For the full year FY2025, total revenue is expected to range from $1.33 billion to$1.39 billion[10] - Dolby's effective tax rate is anticipated to be around 20.5% on a GAAP basis and 18.5% on a non-GAAP basis for FY2025[10] - Dolby's operating margins are expected to be roughly 20% on a GAAP basis and 33% on a non-GAAP basis for FY2025[10] Cost Management and Liquidity - Research and development expenses were $66.638 million, slightly down from$67.033 million, indicating a focus on cost management[20] - Cash and cash equivalents increased to $520.821 million from$482.047 million, showing improved liquidity[22] - Total current assets rose to $1.285 billion, up from$1.194 billion, reflecting strong operational performance[22] - The company reported net cash provided by operating activities of $106.779 million, a significant increase from$8.409 million in the previous year[24] Share Repurchase - Dolby repurchased approximately 186,000 shares for about $15 million, with$387 million remaining in stock repurchase authorization[6] Gross Margins - Gross margins are anticipated to be approximately 89% on a GAAP basis and 91% on a non-GAAP basis for Q2 FY2025[10] - Gross profit for the quarter was $316.225 million, up from$283.514 million, resulting in a gross margin of approximately 88.6%[20]