SAN FRANCISCO (AP) — Dolby Laboratories Inc. said Thursday that its fiscal fourth-quarter net income declined amid higher costs and lower revenue, but the results surpassed Wall Street's expectations and the company said it is seeing strong demand in the mobile-device market.
Dolby, best known for its audio and video entertainment equipment earned $51.5 million, or 49 cents per share, in the July-September quarter. That's down 35 percent from $79.1 million, or 71 cents per share, in the same period a year earlier,
Revenue fell 8 percent to $224.8 million from $243.8 million.
Analysts, on average, had expected earnings of 45 cents per share on revenue of 209.9 million, according to a poll by FactSet.
"Fourth quarter revenue came in higher than expected, primarily due to strength in mobile devices," said Kevin Yeaman, president and CEO, in a statement. "We continue to see increasing adoption of our technologies in smartphones and tablets."
For the current quarter, Dolby is forecasting revenue of $215 million to $225 million. Analysts are predicting $225.7 million.
For the full fiscal year, the company expects revenue of $900 million to $950 million, which compares with analysts' expectations of $901 million.
Shares of the San Francisco-based company climbed 3 cents to $34.14 in after-hours trading. The stock had closed up 20 cents at $34.11 in the regular trading session.