DTS Inc. said the popularity of Blu-ray devices led to fourth-quarter profits that exceeded Wall Street expectations.
After the markets closed on Monday, the Calabasas audio technology company reported net income of $4.8 million (27 cents per share), compared with $3 million (17 cents) a year earlier. Revenue rose 16 percent to $21.2 million.
Analysts surveyed by Thomson Reuters on average expected the company to report per-share earnings of 25 cents on revenue of $20.2 million.
The company gets its income from licensing or selling its audio technology and services to the makers of home and car sound systems, home-theater-in-a-box systems, DVD players and gaming consoles. Its revenue has grown as prices of Blu-ray devices have dropped, and content has come on the market.
“We saw Blu-ray firmly establish itself as the next major physical media format for home entertainment,” Chief Executive Jon Kirchner said in a press release. “The growing consumer interest in Blu-ray … is setting the stage for an expanded DTS footprint in the online market.”
For fiscal 2009, revenue jumped 29 percent to $77.7 million. Net income from continuing operations rose more than 12 percent to $10.7 million (60 cents).
For fiscal 2010, DTS expects a per-share profit of 73 cents to 78 cents a share, which is in line with Wall Street expectations. It forecast revenue of between $80 million to $83 million, higher than the average analyst estimate of $79.6 million.
Shares on Tuesday closed down 48 cents, or nearly 3 percent, to $16.75 on the New York Stock Exchange.
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