Dolby Laboratories' (NYSE:DLB) Profits Up 25 Percent YOY

Dolby Laboratories (NYSE:DLB) reported profits in its first quarter rose by 25 percent, citing growth in service revenue and licensing fees. There was also a one-off tax event that helped them.

The down side was for fiscal year 2011, Dolby cut their revenue guidance and non-GAAP earnings for the the year, saying the PC market will continue to struggle.

GAAP net income for the first quarter rose to $86.4 million or $0.76 a share, compared to $69.1 million or $0.59 a share for the same quarter last year.

Net income for the quarter, excluding items, came to $85.0 million or $0.75 a share, compared to $74.3 million or $0.64 a share in the same period last year. Analysts had been looking for $0.62 a share.

Revenue for the quarter increased to $242.71 million, a 10 percent gain. Last year in the same quarter revenue was $221.22 million. Analysts had estimated revenue of $234.65 million.

Kevin Yeaman, President and Chief Executive Officer, Dolby Laboratories, said, "During the first quarter, we generated double-digit revenue growth in many of our licensing markets, and we remain well positioned for growth in the number of entertainment devices. In the near term, we have revised our fiscal 2011 outlook to reflect a slowdown in our PC market."

Revised guidance has revenue coming in at $930 million to $970 million, GAAP earnings of $2.57 to $2.73 a share and non-GAAP earnings of $2.82 to $2.98 a share for the fiscal year 2011. Prior revenue guidance was for $950 million to $990 million, GAAP earnings of $2.52 to $2.66 a share and non-GAAP earnings of $2.87 to $3.03 a share.

Dolby closed Thursday at $61.56, gaining $1.30, or 2.16 percent.