DTS Inc. reported a fourth-quarter profit, compared with a year-ago loss, boosted by higher demand for Blu-ray devices in which its digital sound technology is used.
After Thursday's market close, the Agoura Hills developer of decoders, which also are used in PCs and DVD players, reported fourth-quarter net income of $3 million (17 cents per share), compared with a loss of $17.9 million (-99 cents) a year earlier. Revenue rose 8 percent to $18.3 percent.
The results included a charge of 4 cents a share for in-process research and development related to an acquisition. The company also took a 4-cent-a-share charge for stock-based compensation expense.
"The fourth quarter wrapped up a good year for DTS during which Blu-ray advanced meaningfully and we launched important initiatives to secure DTS' position in the emerging broadcast, satellite radio, internet, PC and mobile device markets," Chief Executive Jon Kirchner said in a statement. "Looking ahead, we are optimistic about our prospects for 2009 but remain cautious about market conditions in the near-term."
The company's full year outlook sees revenues in the range of $65 to $69 million, including approximately $4 million in royalty recoveries. Executives expect earnings per share from continuing operations to be in the range of 45 to 50 cents.
DTS shares were up $1.03, or 7 percent, to $15.76 in Friday morning trading on the Nasdaq. Kaufman Bros. upgraded the shares to "buy" from "hold."
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