DTS Inc. reported a 157 percent higher second quarter profit thanks to sales of its sound enhancement technology for Blu-ray media products. The company also raised its full-year outlook, but shares fell Tuesday on an analyst's downgrade.

After Monday's market close, the Agoura Hills company reported net income from continuing operations of $3.6 million (21 cents a share), compared with $1.4 million (7 cents) a year ago. Revenue rose 89 percent to $24.2 million.

Analysts surveyed by Thomson Reuters were expecting earnings of 5 cents a share on revenue of $13.8 million.

DTS, which earns royalties on Blu-ray devices bolted with its technology, raised its full-year profit outlook to 57 cents to 62 cents a share from its earlier view of 55 cents to 60 cents a share. The company now expects revenue of $76 million to $79 million, up from its previous forecast of $65 million to $69 million.

"Especially considering the difficult economic climate, we are pleased with our performance in the second quarter," Chief Executive Jon Kirchner said in a statement. "With retail prices falling, content availability increasing and the pipeline of Blu-ray products growing, we are highly optimistic about our future.

Even so, Barrington Research on Tuesday downgraded shares from "outperform" to "market perform."

Shares fell $1.58, or 6 percent, to $25.98 in midday trading on the Nasdaq.

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