8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 30, 2009

DOLBY LABORATORIES, INC.
(Exact name of registrant as specified in its charter)

Delaware	001-32431	90-0199783
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

100 Potrero Avenue

San Francisco, CA 94103-4813

(Address of principal executive offices) (Zip Code)

(415) 558-0200
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Section 2 – Financial Information

ITEM 2.02     Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 30, 2009, Dolby Laboratories, Inc. issued a press release announcing its financial results for its third fiscal quarter ended June 26, 2009. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.



Section 9 – Financial Statements and Exhibits

ITEM 9.01     Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is furnished herewith:

Exhibit No.	Description
99.1	Press Release of Dolby Laboratories, Inc. dated July 30, 2009

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			DOLBY LABORATORIES, INC.
		By:	/s/ Murray J. Demo
			Murray J. Demo
			Chief Financial Officer
Date:	July 30, 2009

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Dolby Laboratories, Inc. dated July 30, 2009

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EX-99.1

Exhibit 99.1

Dolby Laboratories Reports Third Quarter Fiscal 2009 Results

SAN FRANCISCO--(BUSINESS WIRE)--July 30, 2009--Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company's financial results for the third quarter of fiscal 2009.

For the third quarter, Dolby reported total revenue of $171.2 million, compared to $154.3 million for the third quarter of fiscal 2008, an increase of 11 percent. Third quarter fiscal 2009 revenue included $21.6 million from three licensees for prior-period shipments.

Third quarter net income was $51.1 million, or $0.44 per diluted share, compared to $46.4 million, or $0.40 per diluted share, for the third quarter of fiscal 2008.

Net income for the third quarter of fiscal 2009 reflects stock-based compensation expenses of $6.6 million compared to $5.6 million for the third quarter of fiscal 2008 and charges related to the amortization of intangibles of $3.5 million for the third quarter of fiscal 2009 compared to $3 million for the third quarter of fiscal 2008. In addition, net income for the third quarter of fiscal 2009 reflects restructuring charges of $1.3 million primarily related to the consolidation of manufacturing operations.

“We delivered solid financial results in a challenging economy,” said Kevin Yeaman, President and Chief Executive Officer, Dolby Laboratories. “We continue to benefit from the adoption of our technologies in a diverse range of entertainment devices and we remain focused on driving further adoption.”

Guidance

Dolby is now targeting fiscal 2009 revenue of $700 million to $715 million. Net income is now targeted to be $232 million to $237 million. Earnings per diluted share are now targeted to be $2.01 to $2.06. Reflected in Dolby’s fiscal 2009 earnings guidance is a $20 million gain in the first quarter resulting from an amendment to a license agreement with an unrelated patent licensor, and approximately $5 million in estimated restructuring charges primarily related to the consolidation of our manufacturing operations to be recognized in fiscal 2009. The net impact of the $20 million gain and the $5 million in restructuring charges in the fiscal year are approximately $13 million and $3 million, respectively, or $0.11 and $0.03 per diluted share, respectively. While under FAS 123R, stock-based compensation expense may vary based on factors such as stock price or volatility, Dolby is targeting stock-based compensation expense for the full year to be approximately $23 million. In addition, Dolby is targeting charges related to the amortization of intangibles for fiscal 2009 to be approximately $15 million.

The Company's Conference Call Information

Members of Dolby management will lead a conference call, open to all interested parties, to discuss Dolby Laboratories’ third quarter fiscal 2009 financial results at 2:00 p.m. PT, 5:00 p.m. ET, Thursday, July 30, 2009.

Access to the teleconference will be available over the Internet at http://investor.dolby.com/medialist.cfm or by phone by dialing 866-290-0882. International callers can access the conference call by dialing 913-312-6694.

A replay of the call will be available beginning at 5:00 p.m. PT on Thursday, July 30, 2009, until 9:00 p.m. PT on August 6, 2009 by dialing 888-203-1112 (international callers can access the replay by dialing 719-457-0820) using the confirmation code 4464329. An archived version of the teleconference will also be available on www.dolby.com.

Forward-Looking Statements

Certain statements in this press release, including statements relating to Dolby's expectations regarding revenue, net income, earnings per diluted share, future restructuring charges, stock-based compensation expense and charges relating to the amortization of intangibles for the fiscal year ending September 25, 2009, the further adoption of Dolby technologies in a diverse range of entertainment devices, and the benefits that may be derived therefrom 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 the effects of the economic recession both domestically and internationally; risks associated with trends in the markets in which Dolby operates, including the DVD and Blu-ray Disc™, broadcast, personal computer, consumer electronics, gaming, mobile and automobile markets; pricing pressures; the timing of Dolby's receipt of royalty reports and/or payments from its licensees; Dolby’s accuracy of calculation of royalties due to its licensors; 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 in the entertainment industry; 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; the development and growth of the market for digital cinema and digital 3D and Dolby’s ability to successfully penetrate this market; Dolby’s ability to expand its business generally, and to expand its business beyond sound technologies to other technologies related to digital entertainment delivery, by acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s Securities and Exchange Commission 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 (NYSE:DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go. Visit www.dolby.com for more information.

Dolby and the double-D symbol are registered trademarks of Dolby Laboratories. Blu-ray Disc is a trademark of Blu-ray Disc Association. S09/21643 DLB-F

DOLBY LABORATORIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Fiscal Quarter Ended						Fiscal Year-to-Date Ended
	June 27, 2008			June 26, 2009			June 27, 2008			June 26, 2009
	(unaudited)
	(in thousands, except per share amounts)
Revenue:
Licensing	$	127,558		$	142,141		$	399,607		$	456,076
Product sales		18,060			21,790			53,698			75,744
Services		8,699			7,313			23,796			23,806
Total revenue		154,317			171,244			477,101			555,626
Cost of revenue:
Cost of licensing		3,361			3,362			12,179			11,223
Cost of product sales (1)		9,461			13,142			29,649			46,776
Cost of services (1)		3,194			3,246			9,400			9,546
Gain from amended patent licensing agreement		-			-			-			(20,041	)
Total cost of revenue		16,016			19,750			51,228			47,504
Gross margin		138,301			151,494			425,873			508,122
Operating expenses:
Selling, general and administrative (1)		54,979			55,575			161,275			162,975
Research and development (1)		15,366			17,222			44,998			48,631
Restructuring charges, net		-			1,278			-			4,012
Gain on settlements		(250	)		(1,000	)		(499	)		(5,900	)
Total operating expenses		70,095			73,075			205,774			209,718
Operating income		68,206			78,419			220,099			298,404
Other income, net		2,661			600			10,269			5,794
Income before provision for income taxes and controlling interest		70,867			79,019			230,368			304,198
Provision for income taxes		(24,117	)		(27,502	)		(78,516	)		(104,555	)
Income before controlling interest		46,750			51,517			151,852			199,643
Controlling interest in net income		(302	)		(371	)		(953	)		(951	)
Net income	$	46,448		$	51,146		$	150,899		$	198,692
Basic earnings per share	$	0.42		$	0.45		$	1.36		$	1.76
Diluted earnings per share	$	0.40		$	0.44		$	1.32		$	1.73
Weighted-average shares outstanding (basic)		111,844			113,261			111,209			112,907
Weighted-average shares outstanding (diluted)		114,875			115,528			114,672			115,153
(1) Stock-based compensation included above was classified as follows:
Cost of product sales	$	167		$	93		$	670		$	471
Cost of services		48			29			126			85
Selling, general and administrative		4,262			5,165			13,157			12,233
Research and development		1,158			1,268			3,277			3,186

DOLBY LABORATORIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
	September 26, 2008		June 26, 2009
	(unaudited)
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	394,761	$	363,376
Short-term investments		119,667		211,279
Accounts receivable, net		27,650		49,817
Inventories		18,133		9,986
Deferred taxes		91,824		68,192
Prepaid expenses and other current assets		39,834		35,498
Total current assets		691,869		738,148
Property, plant and equipment, net		87,915		90,577
Intangible assets, net		83,060		81,694
Goodwill		250,356		250,582
Long-term investments		180,996		289,745
Deferred taxes		24,900		33,130
Other assets		17,050		24,873
Total assets	$	1,336,146	$	1,508,749
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	156,925	$	110,709
Income taxes payable		4,811		897
Current portion of long-term debt		1,593		1,615
Deferred revenue		37,344		35,110
Total current liabilities		200,673		148,331
Long-term debt		7,782		6,315
Deferred revenue		6,171		10,838
Deferred taxes		16,755		15,223
Other liabilities		33,414		29,205
Total liabilities		264,795		209,912
Controlling interest		22,098		22,170
Stockholders' equity:
Class A common stock		52		53
Class B common stock		60		60
Additional paid-in capital		434,907		466,297
Retained earnings		609,495		808,176
Accumulated other comprehensive income		4,739		2,081
Total stockholders' equity		1,049,253		1,276,667
Total liabilities and stockholders' equity	$	1,336,146	$	1,508,749

DOLBY LABORATORIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Fiscal Quarter Ended						Fiscal Year-to-Date Ended
	June 27, 2008			June 26, 2009			June 27, 2008			June 26, 2009
	(unaudited)
	(in thousands)
Operating activities:
Net income	$	46,448		$	51,146		$	150,899		$	198,692
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,054			6,916			18,292			21,501
Stock-based compensation expense		5,394			6,371			16,921			15,551
Accretion of discounts/amortization of premium on investments		770			1,677			982			3,942
Excess tax benefit from exercise of stock options		(6,965	)		(2,065	)		(18,517	)		(3,548	)
Provision for doubtful accounts		282			(234	)		767			1,148
Deferred taxes		(4,750	)		2,875			(20,485	)		19,832
Gain on Put Rights		-			(232	)		-			(9,452	)
Unrealized losses on auction rate certificates		-			232			-			10,854
Gain from amended patent licensing agreement		-			-			-			(20,041	)
Other non-cash items affecting net income		816			3,355			2,316			2,746
Changes in operating assets and liabilities:
Accounts receivable		(2,760	)		(3,477	)		(16,281	)		(24,694	)
Inventories		(2,757	)		3,855			(8,874	)		145
Prepaid expenses and other assets		(4,222	)		(4,530	)		(9,535	)		3,163
Accounts payable and accrued liabilities		12,347			(8,669	)		19,688			(24,244	)
Income taxes, net		(6,307	)		(1,020	)		6,147			248
Deferred revenue		7,136			11,760			18,283			4,788
Other liabilities		2,753			237			4,410			(2,367	)
Payment on litigation settlement		(3,000	)		(3,000	)		(3,000	)		(3,000	)
Net cash provided by operating activities		51,239			65,197			162,013			195,264
Investing activities:
Purchases of available-for-sale securities		(49,604	)		(109,470	)		(213,028	)		(304,723	)
Proceeds from sale of available-for-sale and trading securities		13,756			43,999			283,132			97,985
Purchases of property, plant and equipment		(3,035	)		(5,684	)		(7,666	)		(9,236	)
Purchase of intangible assets		-			-			-			(8,321	)
Acquisitions, net of cash acquired		-			(16,621	)		(253,176	)		(16,621	)
Other		-			-			40			-
Net cash used in investing activities		(38,883	)		(87,776	)		(190,698	)		(240,916	)
Financing activities:
Payments on debt		(387	)		(387	)		(1,146	)		(1,121	)
Proceeds from exercise of stock options		2,915			6,249			10,916			9,410
Issuance of Class A commons stock (ESPP)		628			1,830			1,133			3,465
Excess tax benefit from exercise of stock options		6,965			2,065			18,517			3,548
Net cash provided by financing activities		10,121			9,757			29,420			15,302
Effect of foreign exchange rate changes on cash and cash equivalents		(72	)		3,670			705			(1,035	)
Net increase/(decrease) in cash and cash equivalents		22,405			(9,152	)		1,440			(31,385	)
Cash and cash equivalents at beginning of period		347,502			372,528			368,467			394,761
Cash and cash equivalents at end of period	$	369,907		$	363,376		$	369,907		$	363,376

CONTACT:
Dolby Laboratories
Investor Contact:
Alex Hughes, 415-645-4572
investor@dolby.com
Media Contact:
Sean Durkin, 415-645-5000
news@dolby.com