Technology
Dolby Laboratories Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Published
2 years agoon
By
SAN FRANCISCO, Nov. 19, 2024 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the fourth quarter and fiscal year 2024.
“We are pleased with the progress we made in fiscal 2024,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “As we enter fiscal 2025, we have strong momentum with Dolby Atmos and Dolby Vision, our imaging patent portfolio has gotten stronger with the GE Licensing acquisition, and we are excited about our opportunity with Dolby.io, which is well positioned to provide real time interactive experiences for sports and entertainment.”
Fourth Quarter Fiscal 2024 Financial Highlights
Total revenue was $305 million, compared to $291 million for the fourth quarter of fiscal 2023.GAAP net income was $59 million, or $0.61 per diluted share, compared to GAAP net income of $9 million, or $0.09 per diluted share, for the fourth quarter of fiscal 2023. On a non-GAAP basis, fourth quarter net income was $78 million, or $0.81 per diluted share, compared to $64 million, or $0.65 per diluted share, for the fourth quarter of fiscal 2023.Dolby repurchased approximately 251,000 shares of its common stock and ended the quarter with approximately $402 million of stock repurchase authorization available going forward.
Full Year Fiscal 2024 Financial Highlights
Total revenue was $1.27 billion, compared to $1.30 billion for the full year of fiscal 2023.GAAP net income was $262 million, or $2.69 per diluted share, compared to GAAP net income of $201 million, or $2.05 per diluted share, for the full year of fiscal 2023. On a non-GAAP basis, full year net income was $369 million, or $3.79 per diluted share, compared to $348 million, or $3.56 per diluted share, for the full year of fiscal 2023.Cash flows from operations were $327 million, compared to $367 million for the full year of fiscal 2023.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
We closed the acquisition of GE Licensing, which we expect to be accretive to margins and earnings on a non-GAAP basis in fiscal 2025, and which gives us a stronger position in imaging patents.We acquired THEO Technologies, expanding Dolby.io’s ability to offer customers the best solutions for real-time streaming experiences that drive fan engagement and interactivity.We added two new automotive partners in Q4; WEY, a Chinese car company that specializes in premium Crossovers and SUVs, and Smart, a JV between Mercedes and Geely. We now have over 20 automotive OEM partners supporting Dolby Atmos, up from 10 partners one year ago.Meta announced support for Dolby Atmos across its MetaQuest headset device lineup.Apple launched the iPhone 16, which supports Dolby Atmos and Dolby Vision, and records in Dolby Vision.Xiaomi announced new 4K QLED TVs that support Dolby Vision.Australia selected Dolby AC-4 as part of its new broadcast set-top-box specification.Polytron, an Indonesian TV OEM, launched a new TV that supports Dolby Atmos and Dolby Vision.Lenovo’s new Thinkpad X1 Carbon Gen 13 Aura Edition supports Dolby Vision, and its Thinkbook 16 Gen7+ and Thinkbook 16 Gen 7 supports Dolby Atmos.Alienware released 27 4K Dual Resolution Gaming Monitor that supports Dolby Atmos.
Upcoming Investor Event
Dolby is hosting an event at CES for the financial community where we will demonstrate a wide array of our technologies. The event will be held at 7:00 a.m. PT on Wednesday, January 8, 2025. Please send an email to IR@dolby.com for more information.
Dividend
Today, Dolby announced a cash dividend of $0.33 per share of Class A and Class B common stock, payable on December 10, 2024, to stockholders of record as of the close of business on December 3, 2024.
Revolving Credit Facility
On November 14, 2024, Dolby entered into a Credit Agreement with Bank of America for a $250 million revolving credit facility. The facility includes $150 million of uncommitted incremental capacity, has a five-year term and can be terminated early without penalty. Dolby has not drawn on the facility. Further details regarding the Credit Agreement are set out in a Form 8-K filed by Dolby with the U.S. Securities and Exchange Commission on November 19, 2024.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Annual Report on Form 10-K for fiscal 2024, to be filed on or around the date hereof.
Dolby is providing the following estimates for its first quarter of fiscal 2025:
Total revenue is estimated to range from $330 million to $360 million.Licensing revenue is estimated to range from $305 million to $335 million.Gross margins are anticipated to be approximately 87% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $230 million to $240 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.Effective tax rate is anticipated to be around 20.5% on a GAAP basis and around 18.5% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.53 to $0.68 on a GAAP basis and from $0.96 to $1.11 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2025:
Total revenue is expected to range from $1.33 billion to $1.39 billion.Gross margins are anticipated to be approximately 87% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $908 million to $918 million on a GAAP basis and from $765 million to $775 million on a non-GAAP basis.Dolby expects operating margins to be roughly 20% on a GAAP basis and to be roughly 33% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.43 to $2.58 on a GAAP basis and from $3.99 to $4.14 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 full year fiscal 2024 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, November 19, 2024. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-800-715-9871 (+1-646-307-1963 for international callers) and entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Tuesday, November 19, 2024, until 8:59 p.m. PT (11:59 p.m. ET) on Tuesday, November 26, 2024 by dialing 1-800-770-2030 (+1-609-800-9909 for international callers) and entering the confirmation code 5587811. 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 management uses, and Dolby provides to investors, certain non-GAAP financial measures as 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 and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its 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 Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: 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. For the fourth quarter of fiscal 2023, we excluded from non-GAAP net income and diluted earnings per share a restructuring charge of about $30 million comprised of approximately $13 million for severance and related benefits and an impairment loss of approximately $17 million related primarily to internally developed software for projects we are no longer pursuing. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its 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, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, 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 and below. 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 and in our earnings calls, including, but not limited to, expected financial results for the first quarter of fiscal 2025 and full year fiscal 2025, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial 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 economic conditions 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; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; 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; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; 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 products and 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 and cinema industries 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 its Annual Report on Form 10-K filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, 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. Dolby partners 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 in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year Ended
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
Revenue:
Licensing
$ 282,705
$ 265,203
$ 1,181,794
$ 1,197,930
Products and services
22,101
25,359
91,927
101,814
Total revenue
304,806
290,562
1,273,721
1,299,744
Cost of revenue:
Cost of licensing
18,764
14,556
67,204
64,890
Cost of products and services
15,232
20,996
73,292
87,676
Total cost of revenue
33,996
35,552
140,496
152,566
Gross profit
270,810
255,010
1,133,225
1,147,178
Operating expenses:
Research and development
68,636
70,426
263,663
271,523
Sales and marketing
87,901
90,870
334,460
354,364
General and administrative
69,209
66,612
270,392
258,477
Restructuring charges/(credits)
(1,290)
30,596
6,384
47,061
Total operating expenses
224,456
258,504
874,899
931,425
Operating income/(loss)
46,354
(3,494)
258,326
215,753
Other income/(expense):
Interest income/(expense), net
6,854
9,280
34,077
28,086
Other income, net
6,526
3,247
20,076
6,214
Total other income
13,380
12,527
54,153
34,300
Income before income taxes
59,734
9,033
312,479
250,053
(Provision for)/benefit from income taxes
(868)
875
(48,163)
(48,409)
Net income including noncontrolling interest
58,866
9,908
264,316
201,644
Less: net income attributable to noncontrolling interest
(296)
(722)
(2,491)
(988)
Net income attributable to Dolby Laboratories, Inc.
$ 58,570
$ 9,186
$ 261,825
$ 200,656
Net income per share:
Basic
$ 0.61
$ 0.10
$ 2.74
$ 2.10
Diluted
$ 0.61
$ 0.09
$ 2.69
$ 2.05
Weighted-average shares outstanding:
Basic
95,395
95,701
95,544
95,771
Diluted
96,593
97,678
97,325
97,733
DOLBY LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
September 27,
2024
September 29,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 482,047
$ 745,364
Restricted cash
95,705
72,602
Short-term investments
—
139,148
Accounts receivable, net
315,465
262,245
Contract assets, net
197,478
182,130
Inventories, net
33,728
35,623
Prepaid expenses and other current assets
69,994
50,692
Total current assets
1,194,417
1,487,804
Long-term investments
89,267
97,812
Property, plant, and equipment, net
479,109
481,581
Operating lease right-of-use assets
39,046
40,199
Goodwill and intangible assets, net
967,722
575,836
Deferred taxes
219,758
201,860
Other non-current assets
120,609
94,674
Total assets
$ 3,109,928
$ 2,979,766
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 17,380
$ 20,925
Accrued liabilities
347,529
351,399
Income taxes payable
9,045
4,769
Contract liabilities
31,644
31,505
Operating lease liabilities
12,238
13,628
Total current liabilities
417,836
422,226
Non-current contract liabilities
34,593
39,997
Non-current operating lease liabilities
34,754
37,020
Other non-current liabilities
135,852
108,339
Total liabilities
623,035
607,582
Stockholders’ equity:
Class A common stock
53
53
Class B common stock
41
41
Retained earnings
2,496,255
2,391,990
Accumulated other comprehensive loss
(19,187)
(36,984)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,477,162
2,355,100
Noncontrolling interest
9,731
17,084
Total stockholders’ equity
2,486,893
2,372,184
Total liabilities and stockholders’ equity
$ 3,109,928
$ 2,979,766
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year Ended
September 27,
2024
September 29,
2023
Operating activities:
Net income including noncontrolling interest
$ 264,316
$ 201,644
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
75,559
82,558
Stock-based compensation
119,825
118,486
Amortization of operating lease right-of-use assets
11,768
12,956
Amortization of premium on investments
(2,919)
(860)
Benefit from credit losses
(2,256)
(793)
Deferred income taxes
(21,612)
(18,337)
Impairment loss on internally developed software
—
16,225
Other non-cash items affecting net income
(10,828)
(2,800)
Changes in operating assets and liabilities:
Accounts receivable, net
(28,967)
47,779
Contract assets, net
(8,707)
347
Inventories
(2,654)
(13,226)
Operating lease right-of-use assets
(8,420)
(8,817)
Prepaid expenses and other assets
10,097
3,868
Accounts payable and accrued liabilities
(34,554)
(52,315)
Income taxes, net
(4,501)
(8,722)
Contract liabilities
(9,738)
(8,379)
Operating lease liabilities
(5,263)
(5,818)
Other non-current liabilities
(13,894)
3,285
Net cash provided by operating activities
327,252
367,081
Investing activities:
Purchases of marketable securities
(160,198)
(172,955)
Proceeds from sales of marketable securities
234,061
54,964
Proceeds from maturities of marketable securities
157,729
176,833
Purchases of property, plant, and equipment
(30,007)
(30,339)
Business combinations, net of cash and restricted cash acquired
(487,877)
25,703
Net cash provided by/(used in) investing activities
(286,292)
54,206
Financing activities:
Proceeds from issuance of common stock
40,203
47,781
Repurchase of common stock
(160,001)
(149,276)
Payment of cash dividend
(114,579)
(103,407)
Distributions to noncontrolling interest
(5,164)
(266)
Purchase of noncontrolling interest in business combinations
(9,920)
—
Equity issued in connection with business combination
722
—
Shares repurchased for tax withholdings on vesting of restricted stock
(39,075)
(31,144)
Payment of deferred consideration for prior business combinations
—
(500)
Net cash used in financing activities
(287,814)
(236,812)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
6,640
5,120
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(240,214)
189,595
Cash, cash equivalents, and restricted cash at beginning of period
817,966
628,371
Cash, cash equivalents, and restricted cash at end of period
$ 577,752
$ 817,966
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year Ended
Market
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Broadcast
$ 95,779
34 %
$ 102,448
39 %
$ 409,105
35 %
$ 451,719
38 %
Mobile
48,701
17 %
36,122
14 %
235,774
20 %
243,897
20 %
CE
42,024
15 %
41,682
16 %
165,817
14 %
170,197
14 %
PC
34,077
12 %
27,240
10 %
141,300
12 %
124,362
10 %
Other
62,124
22 %
57,711
21 %
229,798
19 %
207,755
18 %
Total licensing revenue
$ 282,705
100 %
$ 265,203
100 %
$ 1,181,794
100 %
$ 1,197,930
100 %
GAAP to Non-GAAP Reconciliations
(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 and fiscal years ended September 27, 2024 and September 29, 2023:
Net income:
Fiscal Quarter Ended
Fiscal Year Ended
(in thousands)
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
GAAP net income attributable to Dolby Laboratories, Inc.
$ 58,570
$ 9,186
$ 261,825
$ 200,656
Stock-based compensation (1)
29,679
28,195
119,825
118,486
Amortization of acquisition-related intangibles (2)
6,296
3,306
15,552
10,056
Restructuring charges/(credits)
(1,290)
30,596
6,384
47,061
Impact of Tax Reform
(10,042)
—
(10,042)
—
Income tax adjustments
(4,777)
(7,339)
(24,528)
(28,249)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 78,436
$ 63,944
$ 369,016
$ 348,010
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 362
$ 388
$ 1,501
$ 1,697
Research and development
9,703
9,643
38,214
39,472
Sales and marketing
9,994
9,279
40,128
40,038
General and administrative
9,620
8,885
39,982
37,279
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 2,789
$ 62
$ 2,890
$ 248
Cost of products and services
768
650
2,350
3,248
Research and development
—
—
—
253
Sales and marketing
867
721
2,824
3,137
General and administrative
1,872
1,873
7,488
3,170
Diluted earnings per share:
Fiscal Quarter Ended
Fiscal Year Ended
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
GAAP diluted earnings per share
$ 0.61
$ 0.09
$ 2.69
$ 2.05
Stock-based compensation
0.30
0.29
1.23
1.21
Amortization of acquisition-related intangibles
0.06
0.03
0.16
0.10
Restructuring charges/(credits)
(0.01)
0.31
0.07
0.48
Impact of Tax Reform
(0.10)
—
(0.11)
—
Income tax adjustments
(0.05)
(0.07)
(0.25)
(0.28)
Non-GAAP diluted earnings per share
$ 0.81
$ 0.65
$ 3.79
$ 3.56
Weighted-average shares outstanding – diluted (in thousands)
96,593
97,678
97,325
97,733
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the first quarter of fiscal 2025 and full year fiscal 2025 included in this release:
Gross margin:
Q1 2025
Fiscal 2025
GAAP gross margin
87.0 %
87.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
2.9 %
2.9 %
Non-GAAP gross margin
90.0 %
90.0 %
Operating expenses (in millions):
Q1 2025
Fiscal 2025
GAAP operating expenses (low – high end of range)
$230 – $240
$908 – $918
Stock-based compensation
(37)
(134)
Amortization of acquisition-related intangibles
(3)
(9)
Non-GAAP operating expenses (low – high end of range)
$190 – $200
$765 – $775
Operating margin:
Fiscal 2025
GAAP operating margin
20% +/-
Stock-based compensation
10 %
Amortization of acquisition-related intangibles
3 %
Non-GAAP operating margin
33% +/-
Effective tax rate:
Q1 2025
GAAP effective tax rate
20.5 %
Stock-based compensation (low – high end of range)
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of range)
(1%) – 0%
Non-GAAP effective tax rate
18.5 %
Diluted earnings per share:
Q1 2025
Fiscal 2025
Low
High
Low
High
GAAP diluted earnings per share
$ 0.53
$ 0.68
$ 2.43
$ 2.58
Stock-based compensation
0.39
0.39
1.39
1.39
Amortization of acquisition-related intangibles
0.12
0.12
0.45
0.45
Income tax adjustments
(0.08)
(0.08)
(0.28)
(0.28)
Non-GAAP diluted earnings per share
$ 0.96
$ 1.11
$ 3.99
$ 4.14
Weighted-average shares outstanding – diluted (in thousands)
97,400
97,400
97,500
97,500
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/dolby-laboratories-reports-fourth-quarter-and-fiscal-year-2024-financial-results-302310222.html
SOURCE Dolby Laboratories, Inc.
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Technology
Secretary of State Belanger announces expansion of high-speed Internet access in Saskatchewan
Published
57 minutes agoon
July 24, 2026By
Federal investment of over $141 million will help connect more than 30,000 homes to high–speed Internet
HUMBOLDT, SK, July 24, 2026 /CNW/ — Reliable and affordable high-speed Internet is essential for all Canadians. It enables access to important online resources, connects friends and families, and drives economic growth and innovation. This is why the Government of Canada is helping bring high-speed Internet access to underserved communities–including Indigenous communities–in Saskatchewan.
Today, the Honourable Buckley Belanger, Secretary of State for Rural Development, announced over $141 million in federal funding for six projects to bring high-speed Internet access to more than 30,000 households in over 500 rural and remote communities across Saskatchewan.
This funding is provided through the Universal Broadband Fund, a program designed to ensure that Canadians in rural, remote and Indigenous communities have access to reliable high-speed Internet.
The Government of Canada has committed to ensuring that every household in Canada has access to high-speed Internet by 2030, and it is on track to meet this connectivity target. These projects will build toward that goal, and the government will continue to invest in infrastructure that creates new opportunities and makes sure communities can benefit from all of Canada’s potential.
Quotes
“High-speed Internet is no longer just a luxury–it’s essential infrastructure, no matter where you live in Canada. It’s how people access health care virtually, start a business or just stay in touch with their loved ones. That’s why we made a historic commitment to provide 100% of Canadian households with access to high-speed Internet by 2030. The projects announced today are a major milestone for connectivity in Saskatchewan, providing reliable and affordable high-speed Internet to more than 30,000 underserved homes in over 500 rural and remote communities across the province.”
– The Honourable Buckley Belanger, Secretary of State for Rural Development
“In many rural and remote areas, connectivity projects like these face a number of financial and structural barriers. Federal tools like the Canada Infrastructure Bank help bridge that gap, ensuring critical infrastructure is built where it otherwise would not be. By supporting initiatives like this, we are advancing economic growth today and helping close the connectivity gap for underserved communities well into the future.”
– The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
“Access to dependable high-speed Internet should not be determined by where people live. Thanks to support from the Government of Canada through the Universal Broadband Fund, RFNOW is delivering the infrastructure needed to connect underserved rural and First Nations communities across Saskatchewan. Together, we are building a stronger digital future that will enhance economic development, support essential services and improve quality of life for thousands of Canadians.”
– Chris Kennedy, Chief Executive Officer, RFNOW Inc.
“Every community deserves the opportunity that comes with access to reliable high-speed Internet–and that’s exactly what this investment delivers. In partnership with the Government of Canada’s Universal Broadband Fund, Xplore is bringing high-speed Internet connectivity to nearly 20,000 homes and businesses in Saskatchewan. Better connectivity means more than faster downloads–it means students can learn without interruption, families can access health care from home, and local businesses can compete on a level playing field.”
– Brent Johnston, Chief Executive Officer, Xplore Inc.
“Since our establishment in 2007, we have been committed to providing dependable Internet service and strengthening connections in the communities we serve. With support from the Government of Canada’s Universal Broadband Fund, we’re excited to expand our network and introduce new 6 GHz fixed wireless technology capable of delivering speeds of up to 1 Gbps. This project will help more residents of rural and remote communities access the reliable high-speed connectivity they need for work, education, health care, business and everyday life.”
– Allen Stafford, President, Stafford Communications Inc.
“Beaver River Broadband has secured federal Universal Broadband Fund support to deliver fibre-to-the-home infrastructure directly to Peepeekisis Cree Nation. This critical investment guarantees gigabit-capable Internet access that will transform local opportunities in digital education, remote health care and community-led economic development. Crucially, the project underscores the importance of partnering with smaller, regional Internet providers that bring deep community roots, agile deployment and a dedicated focus on serving areas that larger national carriers often overlook. As an Indigenous-led regional provider working closely with First Nations, Beaver River Broadband understands the unique needs of the area and delivers tailored, reliable customer support on the ground. Empowering local providers through initiatives like the Universal Broadband Fund ensures that underserved First Nations are not just connected but also supported by partners invested in their long-term digital sovereignty.”
– John DeGraauw, CEO, Beaver River Broadband
“MCSnet’s fibre-to-the-tower expansion in Saskatchewan will deliver fast, highly reliable Internet access to underserved homes in rural Saskatchewan, courtesy of a dedicated, community-invested provider. As a family-owned company based in the Prairies, we have been serving rural communities with our innovative technology and exceptional customer service for over 30 years.”
– Jerome VanBrabant, Chief Projects Officer, MCSnet
Quick facts
Canada’s Connectivity Strategy aims to provide all Canadians with access to Internet speeds of at least 50 megabits per second (Mbps) download / 10 Mbps upload.The Universal Broadband Fund is a $3.225 billion investment by the Government of Canada designed to help provide high-speed Internet access to 98% of Canadian households by the end of 2026 and achieve the national target of 100% access by 2030.Today, 97.4% of Canadian households have access to high-speed Internet, compared to just 79% in 2014.In Saskatchewan, 89.2% of households currently have access to high-speed internet.Since 2015, the Government of Canada has invested $242 million in connectivity projects in Saskatchewan.The Canada Infrastructure Bank has committed more than $2 billion toward digital (broadband) infrastructure, closing last-mile connectivity gaps across Canada.Indigenous women, girls, Two-Spirit individuals and gender diverse people are more likely to go missing or be murdered than non-Indigenous women. Better connectivity means more tools in moments of danger, enabling victims of violence to access critical online resources and get help when they need it most.Building on the Building a Green Prairie Economy Act, the Government of Canada launched the Prairie Partnership Initiative to build a dynamic, sustainable and inclusive economy in the Prairie provinces.
Associated links
Rural economic developmentHigh-Speed Internet Access DashboardUniversal Broadband FundBackgrounder: Universal Broadband Fund and Telesat low Earth orbit capacity agreementCanada Infrastructure Bank: Digital Infrastructure and AIHigh-Speed Access for All: Canada’s Connectivity StrategyNational Broadband MapFederal Pathway to Address Missing and Murdered Indigenous Women, Girls and 2SLGBTQQIA+ PeoplePrairie Partnership Initiative
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SOURCE Innovation, Science and Economic Development Canada
Technology
Fragmented Web Strategies Leave Organizations Exposed as Digital Expectations Rise, Warns Info-Tech Research Group
Published
57 minutes agoon
July 24, 2026By
Organizations are increasingly focused on modernizing their digital presence to meet rising user expectations, yet many still rely on decentralized content models, inconsistent governance, and legacy platforms. New findings from Info-Tech Research Group show that without a structured web experience management (WEM) strategy, web initiatives often fail to align with business goals and user needs. The firm’s blueprint Develop Your Web Experience Management Strategy provides a five-phase framework and tools to help IT leaders strengthen governance and align web priorities with organizational objectives.
ARLINGTON, Va., July 24, 2026 /CNW/ — Organizations continue to invest in digital platforms and web modernization efforts, but progress is often limited by unclear priorities, inconsistent ownership, and a lack of shared performance measures. New insights from Info-Tech Research Group indicate that without a clear understanding of web experience maturity and readiness, digital investments fail to translate into consistent and measurable outcomes. The global research and advisory firm’s recently published blueprint, Develop Your Web Experience Management Strategy, provides a structured five-phase methodology to assess current-state capabilities, define priority audiences and journeys, and build a practical roadmap for evolving the web ecosystem in alignment with organizational objectives.
“Web experience management has moved beyond basic websites to become a core driver of growth and engagement,” says Hriday Gulrajani, senior research analyst at Info-Tech Research Group. “CIOs and IT leaders need to align marketing, data, and technology teams under clear governance and a structured roadmap to deliver consistent, scalable digital experiences.”
Info-Tech’s blueprint shows that many organizations treat web modernization as a technology upgrade rather than a coordinated experience strategy. As a result, content operations remain decentralized, integration between core systems such as CMS, CRM, and analytics platforms is inconsistent, and governance responsibilities are not clearly defined. While capabilities such as personalization, automation, and advanced analytics offer opportunities to improve engagement and operational efficiency, organizations often lack a structured framework for prioritizing initiatives and measuring progress across the web ecosystem.
Key Challenges IT Leaders Face in Web Experience Management
Despite ongoing investment in digital platforms and experience initiatives, many organizations encounter structural and operational barriers that limit progress. Info-Tech’s research highlights several persistent challenges:
Content decisions are often made in silos, resulting in inconsistent messaging, fragmented governance, and unclear ownership across teams.Limited integration between CMS, CRM, analytics, and other core systems restricts visibility into user behavior and makes it difficult to measure and improve web experience performance.Legacy platforms and constrained architectures limit personalization, automation, accessibility, and multichannel delivery capabilities.Misalignment between marketing, IT, and data teams slows decision-making and weakens the organization’s ability to evolve its web ecosystem strategically.
Info-Tech’s Practical Framework for Web Experience Management
To address these challenges, Info-Tech recommends a structured five-phase approach that connects organizational strategy, customer experience priorities, and web execution. The Develop Your Web Experience Management Strategy blueprint outlines the following priorities for CIOs and IT leaders:
Phase 1: Define Vision & Success Criteria – Align WEM objectives to organizational strategy, define strategic outcomes, and establish experience KPIs to measure performance across digital touchpoints.
Phase 2: Assess Current State & Readiness – Use a web experience maturity model to evaluate capabilities across people, process, technology, and performance, and identify integration gaps and readiness risks.
Phase 3: Understand Audiences & Experience Priorities – Define priority personas, map end-to-end journeys, and translate organizational goals into structured web experience use cases prioritized by value and feasibility.
Phase 4: Architect & Govern the Ecosystem – Establish architecture principles, design the target-state WEM ecosystem, and define governance structures and operating models that clarify roles, ownership, and decision rights.
Phase 5: Launch, Communicate, & Measure – Develop a phased roadmap aligned to key value drivers, implement performance measurement frameworks, and enable continuous optimization across the web ecosystem.
Info-Tech’s Develop Your Web Experience Management Strategy blueprint is supported by a Web Experience Management Business Case Template and a Web Experience Initiatives Prioritization and Roadmap Planning Tool. These resources are designed to help CIOs and IT leaders build a clear case for modernization, prioritize initiatives based on value and feasibility, and develop phased roadmaps aligned to organizational objectives. By applying this framework and its supporting tools, organizations can strengthen governance, improve cross-functional alignment, and evolve their web ecosystem in a measurable and scalable way.
For exclusive and timely commentary from Info-Tech’s experts, including Hriday Gulrajani, and access to the complete Develop Your Web Experience Management Strategy blueprint, please contact pr@infotech.com.
About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading and fastest-growing research and advisory firms, serving over 30,000 IT, HR, and marketing professionals around the globe. As a trusted product and service leader, the company delivers unbiased, highly relevant research and industry-leading advisory support to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide everything they need, from actionable tools to expert guidance, ensuring they deliver measurable results for their organizations.
To learn more about Info-Tech’s HR research and advisory services, visit McLean & Company, and for data-driven software buying insights and vendor evaluations, visit the firm’s SoftwareReviews platform.
Media professionals can register for unrestricted access to research across IT, HR, and software, as well as hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact pr@infotech.com.
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
View original content to download multimedia:https://www.prnewswire.com/news-releases/fragmented-web-strategies-leave-organizations-exposed-as-digital-expectations-rise-warns-info-tech-research-group-302834308.html
SOURCE Info-Tech Research Group
Technology
In HelloNation, Custom Fabrication Expert Mark Coyle Explains What to Know Before Choosing an Aluminum Fabrication Partner
Published
57 minutes agoon
July 24, 2026By
The article explains how an integrated fabrication process supports better quality, efficiency, and long-term project success.
ROCHESTER, N.Y., July 24, 2026 /PRNewswire/ — What should someone look for before selecting an aluminum fabrication partner who can guide a project from the first design sketch through final delivery? That question is answered in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that explains how the full aluminum production workflow shapes accuracy, consistency, and long-term reliability. The article shows why a clear understanding of each stage in the process helps people make informed decisions before committing to a fabrication partner.
The article begins by explaining that aluminum fabrication involves far more than cutting or welding. It describes how every project moves through a connected chain of design support, extrusion, machining, finishing, and logistics. Each step affects the next, and the article notes that the best results come from choosing an aluminum fabrication partner who keeps these stages aligned. By showing how coordination prevents errors, the article gives readers a practical way to evaluate a potential shop.
Early design support is a major focus of the article. It states that many projects benefit when design engineering is handled in-house because small adjustments to a profile can influence strength, weight, and final performance. The HelloNation article explains that an aluminum fabrication partner with internal design capabilities can review shapes before tooling begins, reducing the risk of delays caused by unrealistic or difficult-to-extrude features. This design stage sets the direction for everything that follows, making it one of the most valuable parts of the process.
The article also examines extrusion, which it calls one of the most specialized stages in aluminum manufacturing. It notes that some shops do not extrude their own material, which forces them to rely on outside mills. That structure can lead to longer schedules and more points of communication. By contrast, an aluminum fabrication partner with direct access to extrusion equipment can control die design, schedule production runs, and manage metal flow more precisely. The article explains that this control reduces variation between batches, which supports stable timelines and more predictable quality.
Machining receives detailed attention as well. The article states that accuracy depends on how well each machine is calibrated for the specific alloy and geometry involved. It describes how a fabricator who machines their own extrusions becomes familiar with how those profiles respond to different tool paths and cutting forces. This familiarity supports tighter tolerances and more dependable results. The article explains that when machining is outsourced, the receiving shop may not know the conditions under which the material was extruded or aged, which can cause small adjustments that affect uniformity across long runs.
Finishing is another important stage explored in the article. It explains how anodizing, powder coating, polishing, or protective layers interact with thickness and alloy. The article notes that when finishing is spread across multiple vendors, the project moves more often, which increases the chance for delays or inconsistency. An aluminum fabrication partner with integrated finishing services can keep color and coating texture more uniform while maintaining a tighter schedule.
Logistics also plays a key role in the article’s guidance. It highlights that aluminum profiles, especially long or delicate ones, require thoughtful packaging, palletizing, and freight planning. A shop with its own logistics team can reduce damage risks and speed up the time between manufacturing and delivery. The article explains that when logistics is outsourced, communication slows down and the chances of errors increase, making it harder to keep a project on schedule.
Tolerance control is another subject the article describes. It explains that aluminum reacts to heat, pressure, and machining forces in predictable ways only when the team understands how the material was formed at every stage. The article notes that when extrusion, aging, machining, and inspection all occur within one operation, teams can maintain a closed loop of information. This reduces the risk of dimensional issues and strengthens consistency from batch to batch.
As the article moves toward its conclusion, it emphasizes that choosing the right aluminum fabrication partner comes down to understanding how many stages the shop directly manages. When a partner controls design, extrusion, machining, finishing, and logistics, communication becomes clearer, and the workflow becomes more predictable. The article explains that this unified structure allows teams to adjust quickly because they understand every step of the operation.
The article ends by stating that dependable performance in aluminum work depends on how well each stage connects to the next. A strong aluminum fabrication partner is defined not by one capability but by how the entire process fits together. This guidance gives readers a practical way to evaluate potential partners and make decisions that support long-term project success.
What to Know Before Choosing an Aluminum Fabrication Partner features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.
About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.
View original content to download multimedia:https://www.prnewswire.com/news-releases/in-hellonation-custom-fabrication-expert-mark-coyle-explains-what-to-know-before-choosing-an-aluminum-fabrication-partner-302834344.html
SOURCE HelloNation
Secretary of State Belanger announces expansion of high-speed Internet access in Saskatchewan
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