Shares of DTS Inc. fell 6 percent on Tuesday, a day after the entertainment sound technology company said it expects 2008 earnings to be at the lower end of its previous estimates.
Agoura Hills-based DTS after Monday's market close reported third quarter net income, which exceeded expectations, of $2 million (11 cents a share) compared with $840,000 (5 cents) a year ago. Revenue rose 30 percent to $13.9 million. The quarter's results also included $1.6 million in royalty recoveries.
Analysts surveyed by Thomson First Call expected earnings of 9 cents per share.
The company, whose technology is used in PCs, DVD players, and more recently high-definition Blu-ray players, had previously forecast full-year earnings of 52 cents to 58 cents a share, on revenue of $55 million to $59 million. It now expects revenue to be near the mid point of that range and earnings to be near the low point of the range.
"Early information indicates that production (of older technology equipment) is declining in anticipation of weak consumer demand which would adversely impact our outlook for at least the first half of 2009," said Chief Executive Jon Kirchner during a conference call. "Regardless of any near-term uncertainties, we believe that DTS is well positioned to benefit as the economy stabilizes and demand for consumer electronics products, especially Blu-ray, accelerates over time."
Shares closed down $1.07 to $16.56 on the Nasdag.
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