Investing

Dolby Labs Jumps on Microsoft Deal, Earnings (DLB, MSFT)

A company best known for its audio technology, Dolby Laboratories Inc. (NYSE: DLB) has signed an agreement with Microsoft Corp. (NASDAQ: MSFT) to incorporate Dolby Digital Plus technology in the Windows 8 operating system for both tablets and PCs. According…

By Paul Ausick
Published May 4, 2012, 10:55am ET · 1 min read

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
A company best known for its audio technology, Dolby Laboratories Inc. (NYSE: DLB) has signed an agreement with Microsoft Corp. (NASDAQ: MSFT) to incorporate Dolby Digital Plus technology in the Windows 8 operating system for both tablets and PCs.

According to the announcement, developers will now be able to use the Dolby technology through:

Windows 8 APIs in desktop and Metro-style apps, including those developed for x86 and ARM architectures. Dolby Digital Plus 5.1-channel decoding and Dolby Digital two-channel encoding will be supported in all PCs and tablets licensed to run Windows 8, Windows 8 Pro, and Windows RT editions.

Dolby also announced second fiscal quarter results that beat estimates. Adjusted EPS came in at $0.81 versus a consensus estimate of $0.75 and revenues of $260.3 million topped the consensus estimate of $253.5 million. The company also guide fiscal year EPS to $2.38-$2.62, up from its earlier guidance of $2.31-$2.61. The consensus estimate for full-year EPS had been $2.57. Dolby noted that the Microsoft deal will have no impact on fiscal 2012 results because the Windows 8 is not expected to ship before Dolby’s 2013 fiscal year begins in October.

Dolby’s shares are up about 18.5% at $44.58 in a 52-week range of $25.70-$50.22.

Paul Ausick

Contact [email protected] for any questions or corrections.

1INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).2The probability of a member receiving $3,000 is 0.028%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Members must fund their account with a minimum of $50.00 to qualify. The probability percentage is subject to decrease. Members are only eligible for the Stock Award promotion upon opening their first brokerage account; subsequent cash brokerage accounts are ineligible for the promo, including for members with multiple accounts.

3Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.

4There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
Paul Ausick

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

All articles →