DTS Reports Strong First Quarter 2011
DTS, Inc. (Nasdaq:DTSI) has announced financial results for the first quarter ended March 31, 2011.
For the first quarter of 2011, revenue increased 23% to US$26.8 million, and net income from continuing operations increased 45% to $5.7 million, or $0.32 per diluted share. This compares to revenue of $21.7 million and net income from continuing operations of $3.9 million, or $0.22 per diluted share, reported in the same period of 2010. Included in first quarter of 2011 results is $2.0 million, or $0.07 per diluted share net of tax, in stock-based compensation expense and $339,000, or $0.01 per diluted share net of tax, in amortization of intangible assets.
The Company achieved non-GAAP operating margins of 44% and non-GAAP income from continuing operations of $7.1 million, or $0.40 per diluted share net of tax, in the first quarter of 2011, excluding the above-mentioned charges. This compares to non-GAAP operating margins of 40% and non-GAAP income from continuing operations of $5.3 million, or $0.30 per diluted share, reported in the first quarter of 2010.
“We are pleased to announce a strong first quarter where growth continued to be driven by the increasing adoption of Blu-ray and network connected entertainment products, and a solid contribution from the car market,” commented Jon Kirchner, chairman and CEO of DTS, Inc. “During the quarter, we also made good progress expanding relationships with various manufacturers in the TV, mobile and PC space. Lastly, in the broadcast market, we are encouraged by advancements made with IPTV partners who are now beginning to launch products in the marketplace. In summary, the first quarter was a strong start to what we believe will be an important year of growth and strategic progress for DTS. We continue to advance our strategy to penetrate next-generation, network-based content ecosystems, expanding our business meaningfully beyond optical media.
“As we look ahead, we are confident in our business prospects, even while the overall situation in Japan is still in flux. While we are saddened by the tragic events in Japan, thankfully none of our staff or their families were harmed, and our operations suffered no material damage. Based on the data we currently have from our partners and customers, we do not expect any major disruption to our business. As a result, we are reaffirming our expectations for fiscal year 2011 revenue in the range of $100 to 105 million, non-GAAP operating margins in the lower 40’s, and non-GAAP EPS of $1.40 to $1.49 per diluted share, excluding the impact of both stock based compensation and amortization of intangibles, and the estimated tax impact of those items. We expect stock-based compensation expense to be in the range of $0.32 to $0.34 per share net of tax in 2011. On a GAAP basis, we expect operating margins in the low 30s, and EPS in the range of $1.04 to $1.12 cents per diluted share,” concluded Kirchner.
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