EX-99.1 2 d878692dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Dolby Laboratories Reports Third Quarter 2024 Financial Results

SAN FRANCISCO, August 7, 2024 — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2024.

“Our third quarter results were in line with expectations,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter we continued to build momentum for the content available in Dolby Vision and Dolby Atmos, especially in sports, with viewers around the world enjoying the T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, the NHL and NBA post seasons and right now, the Olympics in Dolby.”

Third Quarter Fiscal 2024 Financial Highlights

 

   

Total revenue was $288.8 million, compared to $298.4 million for the third quarter of fiscal 2023.

 

   

GAAP net income was $38.4 million, or $0.40 per diluted share, compared to GAAP net income of $16.4 million, or $0.17 per diluted share, for the third quarter of fiscal 2023. On a non-GAAP basis, third quarter net income was $68.8 million, or $0.71 per diluted share, compared to $54.1 million, or $0.55 per diluted share, for the third quarter of fiscal 2023.

 

   

Dolby repurchased approximately 423,000 shares of its common stock and ended the quarter with approximately $72 million of stock repurchase authorization available going forward.

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

 

   

Cadillac announced the 2025 OPTIQ EV with Dolby Atmos.

 

   

Electric automotive manufacturer Rivian launched the second generation of its flagship vehicles, the R1S SUV and R1T pickup, that feature support for Dolby Atmos.

 

   

Great Wall Motors launched its new smart cabin system, Coffee OS 3, and a new automobile model with Dolby Atmos.

 

   

Transsion added a Dolby enabled low cost phone for consumers in Malaysia.

 

   

Sharp Singapore launched the R8s Pro smartphone series with Dolby Vision and Dolby Atmos.

 

   

Realme launched the GT6, the first smartphone to support Dolby Vision video capture in telephoto video.

 

   

The T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, and the NHL and NBA post seasons were all available in Dolby Atmos and Dolby Vision.

 

   

Comcast announced that the 2024 Olympics coverage will be available in Dolby Vision and Dolby Atmos.

 

   

Sonos launched headphones that support Dolby Head Tracking with Dolby Atmos.

 

   

VIZIO announced integration of Dolby Atmos across its entire 2024 soundbar lineup.

 

   

Lenovo launched several new flagship products that support Dolby Vision and Dolby Atmos—including the Yoga Air, moto razr, and moto S50 Neo.

 

   

Melco Resorts & Entertainment opened Studio City Cinema, which is the first Dolby Cinema in the Hong Kong Macau Region.

Dividend

Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on August 27, 2024, to stockholders of record as of the close of business on August 19, 2024.


Stock Repurchase Program

Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $422 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.

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 Quarterly Report on Form 10-Q for the third quarter of fiscal 2024, to be filed on or around the date hereof.

Dolby is providing the following estimates for its fourth quarter of fiscal 2024:

 

   

Total revenue is estimated to range from $300 million to $320 million.

 

   

Licensing revenue is estimated to range from $275 million to $295 million.

 

   

Gross margins are anticipated to be approximately 88%.

 

   

Operating expenses are anticipated to range from $225 million to $235 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 29% on a GAAP basis and around 23% on a non-GAAP basis.

 

   

Diluted earnings per share is anticipated to range from $0.31 to $0.46 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis.

Dolby is providing the following estimates for the full year of fiscal 2024:

 

   

Total revenue is expected to range from $1.27 billion to $1.29 billion.

 

   

Gross margins are anticipated to be roughly 89%.

 

   

Operating expenses are anticipated to range from $875 million to $885 million on a GAAP basis and from $735 million to $745 million on a non-GAAP basis.

 

   

Dolby expects operating margins on a GAAP basis to be roughly 20% and on a non-GAAP basis to be roughly 31%.

 

   

Diluted earnings per share is anticipated to range from $2.40 to $2.55 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.

Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2024 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, August 7, 2024. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-888-210-2212 (+1-646-960-0390 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 Wednesday, August 7, 2024, until 8:59 p.m. PT (11:59 p.m. ET) on Wednesday, August 14, 2024 by dialing 1-800-770-2030 (+1-647-362-9199 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. 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.

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 fourth quarter of fiscal 2024 and full year fiscal 2024, 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, including the continued impacts of the recent strikes by the WGA and SAG-AFTRA; 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 Quarterly Report on Form 10-Q 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.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts; unaudited)

 

     Fiscal Quarter Ended     Fiscal Year-To-Date Ended  
     June 28,
2024
    June 30,
2023
    June 28,
2024
    June 30,
2023
 

Revenue:

        

Licensing

   $ 267,082     $ 273,108     $ 899,089     $ 932,727  

Products and services

     21,736       25,262       69,826       76,455  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     288,818       298,370       968,915       1,009,182  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue:

        

Cost of licensing

     17,386       15,610       48,440       50,334  

Cost of products and services

     18,277       25,905       58,060       66,680  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     35,663       41,515       106,500       117,014  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     253,155       256,855       862,415       892,168  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Research and development

     65,501       68,696       195,027       201,097  

Sales and marketing

     77,518       85,594       246,559       263,494  

General and administrative

     69,275       69,954       201,183       191,865  

Restructuring charges

     4,078       16,676       7,674       16,465  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     216,372       240,920       650,443       672,921  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     36,783       15,935       211,972       219,247  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income/(expense):

        

Interest income/(expense), net

     9,439       7,202       27,223       18,806  

Other income, net

     3,942       620       13,550       2,967  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income

     13,381       7,822       40,773       21,773  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     50,164       23,757       252,745       241,020  

Provision for income taxes

     (10,509     (7,352     (47,295     (49,284
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

     39,655       16,405       205,450       191,736  

Less: net income attributable to noncontrolling interest

     (1,211     (6     (2,195     (266
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Dolby Laboratories, Inc.

   $ 38,444     $ 16,399     $ 203,255     $ 191,470  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

        

Basic

   $ 0.40     $ 0.17     $ 2.13     $ 2.00  

Diluted

   $ 0.40     $ 0.17     $ 2.09     $ 1.96  

Weighted-average shares outstanding:

        

Basic

     95,686       95,658       95,593       95,794  

Diluted

     96,959       97,459       97,412       97,588  


DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

 

     June 28,
2024
    September 29,
2023
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 741,636     $ 745,364  

Restricted cash

     36,988       72,602  

Short-term investments

     127,321       139,148  

Accounts receivable, net

     285,843       262,245  

Contract assets, net

     190,803       182,130  

Inventories, net

     34,716       35,623  

Prepaid expenses and other current assets

     51,348       50,692  
  

 

 

   

 

 

 

Total current assets

     1,468,655       1,487,804  

Long-term investments

     117,901       97,812  

Property, plant, and equipment, net

     477,686       481,581  

Operating lease right-of-use assets

     39,857       40,199  

Goodwill and intangible assets, net

     553,096       575,836  

Deferred taxes

     219,822       201,860  

Other non-current assets

     96,618       94,674  
  

 

 

   

 

 

 

Total assets

   $  2,973,635     $  2,979,766  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 16,413     $ 20,925  

Accrued liabilities

     280,611       351,399  

Income taxes payable

     12,294       4,769  

Contract liabilities

     32,650       31,505  

Operating lease liabilities

     12,568       13,628  
  

 

 

   

 

 

 

Total current liabilities

     354,536       422,226  

Non-current contract liabilities

     35,647       39,997  

Non-current operating lease liabilities

     35,619       37,020  

Other non-current liabilities

     100,401       108,339  
  

 

 

   

 

 

 

Total liabilities

     526,203       607,582  

Stockholders’ equity:

    

Class A common stock

     53       53  

Class B common stock

     41       41  

Retained earnings

     2,462,928       2,391,990  

Accumulated other comprehensive loss

     (30,172     (36,984
  

 

 

   

 

 

 

Total stockholders’ equity – Dolby Laboratories, Inc.

     2,432,850       2,355,100  

Noncontrolling interest

     14,582       17,084  
  

 

 

   

 

 

 

Total stockholders’ equity

     2,447,432       2,372,184  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,973,635     $ 2,979,766  
  

 

 

   

 

 

 


DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

 

     Fiscal Year-To-Date Ended  
     June 28,
2024
    June 30,
2023
 

Operating activities:

    

Net income including noncontrolling interest

   $ 205,450     $ 191,736  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     54,199       61,428  

Stock-based compensation

     90,146       90,291  

Amortization of operating lease right-of-use assets

     8,745       9,829  

Amortization of premium on investments

     (2,586     (179

Benefit from (provision for) credit losses

     (2,382     (348

Deferred income taxes

     (18,009     (21,653

Other non-cash items affecting net income

     (6,181     (1,751

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (21,319     43,546  

Contract assets, net

     (8,642     (10,105

Inventories

     (4,615     (2,425

Operating lease right-of-use assets

     (7,681     (3,799

Prepaid expenses and other assets

     7,527       775  

Accounts payable and accrued liabilities

     (80,837     (83,737

Income taxes, net

     15,265       14,975  

Contract liabilities

     (3,189     (1,686

Operating lease liabilities

     (2,577     (7,452

Other non-current liabilities

     (12,232     2,621  
  

 

 

   

 

 

 

Net cash provided by operating activities

     211,082       282,066  
  

 

 

   

 

 

 

Investing activities:

    

Purchases of marketable securities

     (147,646     (123,075

Proceeds from sales of marketable securities

     4,451       54,020  

Proceeds from maturities of marketable securities

     140,839       139,423  

Purchases of property, plant, and equipment

     (22,628     (22,154

Business combinations, net of cash and restricted cash acquired

           25,703  
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (24,984     73,917  
  

 

 

   

 

 

 

Financing activities:

    

Proceeds from issuance of common stock

     39,487       37,231  

Repurchase of common stock

     (139,999     (124,276

Payment of cash dividend

     (85,971     (77,584

Distribution to noncontrolling interest

     (4,507     (266

Shares repurchased for tax withholdings on vesting of restricted stock

     (37,428     (28,619

Equity issued in connection with business combination

     722       —   

Payment of deferred consideration for prior business combinations

     —        (500
  

 

 

   

 

 

 

Net cash used in financing activities

     (227,696     (194,014
  

 

 

   

 

 

 

Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash

     2,256       8,819  
  

 

 

   

 

 

 

Net increase/(decrease) in cash, cash equivalents, and restricted cash

     (39,342     170,788  

Cash, cash equivalents, and restricted cash at beginning of period

     817,966       628,371  
  

 

 

   

 

 

 

Cash, cash equivalents, and restricted cash at end of period

   $ 778,624     $ 799,159  
  

 

 

   

 

 

 


Licensing Revenue by Market

(unaudited)

The following table presents the composition of our licensing revenue for all periods presented (in thousands, except percentage amounts):

 

     Fiscal Quarter Ended     Fiscal Year-To-Date Ended  
Market    June 28, 2024     June 30, 2023     June 28, 2024     June 30, 2023  

Broadcast

   $  95,430        36   $  102,966        38   $  313,326        35   $  349,271        37

Mobile

     63,096        24     50,363        18     187,073        21     207,775        22

CE

     28,352        11     34,417        13     123,793        14     128,515        14

PC

     27,606        10     29,489        11     107,223        12     97,122        10

Other

     52,598        19     55,873        20     167,674        18     150,044        17
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total licensing revenue

   $  267,082        100   $ 273,108        100   $ 899,089        100   $ 932,727        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 third quarter and year-to-date periods ended June 28, 2024 and June 30, 2023:

 

Net income:    Fiscal Quarter Ended     Fiscal Year-To-Date Ended  
(in thousands)    June 28,
2024
    June 30,
2023
    June 28,
2024
    June 30,
2023
 

GAAP net income attributable to Dolby Laboratories, Inc.

   $  38,444     $ 16,399     $  203,255     $  191,470  

Stock-based compensation (1)

     29,337       29,224       90,146       90,291  

Amortization of acquisition-related intangibles (2)

     3,101       3,031       9,256       6,750  

Restructuring charges

     4,078       16,676       7,674       16,465  

Income tax adjustments

     (6,210     (11,255     (19,751     (20,910
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to Dolby Laboratories, Inc.

   $ 68,750     $ 54,075     $ 290,580     $ 284,066  
  

 

 

   

 

 

   

 

 

   

 

 

 

(1)   Stock-based compensation included in above line items:

        

Cost of products and services

   $ 373     $ 375     $ 1,139     $ 1,309  

Research and development

     9,456       9,681       28,511       29,829  

Sales and marketing

     9,726       9,756       30,134       30,759  

General and administrative

     9,782       9,412       30,362       28,394  

(2)   Amortization of acquisition-related intangibles included in above line items:

        

Cost of licensing

   $ 54     $ 62     $ 101     $ 185  

Cost of products and services

     524       866       1,582       2,599  

Research and development

     —        —        —        254  

Sales and marketing

     651       806       1,957       2,415  

General and administrative

     1,872       1,297       5,616       1,297  
Diluted earnings per share:    Fiscal Quarter Ended     Fiscal Year-To-Date Ended  
     June 28,
2024
    June 30,
2023
    June 28,
2024
    June 30,
2023
 

GAAP diluted earnings per share

   $ 0.40     $ 0.17     $ 2.09     $ 1.96  

Stock-based compensation

     0.30       0.30       0.93       0.93  

Amortization of acquisition-related intangibles

     0.03       0.03       0.09       0.06  

Restructuring charges

     0.04       0.17       0.07       0.17  

Income tax adjustments

     (0.06     (0.12     (0.20     (0.21
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted earnings per share

   $ 0.71     $ 0.55     $ 2.98     $ 2.91  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding - diluted (in thousands)

     96,959       97,459       97,412       97,588  


The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of fiscal 2024 and full year fiscal 2024 included in this release:

 

Operating expenses (in millions):          Q4 2024           Fiscal 2024  

GAAP operating expenses (low - high end of range)

     $ 225 -  $235       $ 875 - $885  

Stock-based compensation

       (31       (120)  

Amortization of acquisition-related intangibles

       (4       (12)  

Restructuring charges

       —          (8)  
    

 

 

     

 

 

 

Non-GAAP operating expenses (low - high end of range)

     $ 190 - $200       $ 735 - $745  
    

 

 

     

 

 

 
Operating margin:                      Fiscal 2024  

GAAP operating margin

           20%  +/- 

Stock-based compensation

           9%  

Amortization of acquisition-related intangibles

           1%  

Restructuring charges

           1%  
        

 

 

 

Non-GAAP operating margin

           31% +/- 
        

 

 

 
Effective tax rate:                      Q4 2024  

GAAP effective tax rate

           29

Stock-based compensation (low - high end of range)

           (5%) - 1

Amortization of acquisition-related intangibles (low - high end of range)

           (2%) - 0
        

 

 

 

Non-GAAP effective tax rate

           23
        

 

 

 
Diluted earnings per share:    Q4 2024     Fiscal 2024  
     Low     High     Low     High  

GAAP diluted earnings per share

   $ 0.31     $ 0.46     $ 2.40     $ 2.55  

Stock-based compensation

     0.31       0.31       1.23       1.23  

Amortization of acquisition-related intangibles

     0.03       0.03       0.13       0.13  

Restructuring charges

     —        —        0.08       0.08  

Income tax adjustments

     (0.04     (0.04     (0.24     (0.24
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted earnings per share

   $ 0.61     $ 0.76     $ 3.60     $ 3.75  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding - diluted (in thousands)

     97,000       97,000       97,200       97,200  

Investor Contact:

Peter Goldmacher

415-254-7415

peter.goldmacher@dolby.com

Media Contact:

media@dolby.com