Shares of DTS Inc. dropped more than 15 percent Tuesday morning, a day after the audio technology company reported second quarter results that missed Wall Street forecasts and predicted full-year results below expectations.
The Calabasas company, which licenses technology used in everything from home theater equipment to video game consoles, late Monday reported net income of $2.6 million (14 cents per share) compared with $2.7 million (15 cents) in the same period a year earlier. Revenue rose 18 percent to $20.6 million.
The quarter included 8 cents per share in stock-based compensation expense and 1 cent per share in amortization of intangible assets. Excluding one-time items, adjusted earnings were $4.2 million (24 cents). Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 25 cents on revenue of $21.8 million.
For the full fiscal year, the company now expects adjusted earnings of $1.30 to $1.42 per share and revenue of $95 million to $100 million. The Wall Street consensus forecast is for profit of $1.48 per share on revenue of nearly $104 million.
"In light of growing concerns about the macro-economic environment and softening consumer spending, we are now taking a more cautious approach," said Chief Executive Jon Kirchner in a statement.
Shares closed down 14.4 percent to $25.43 on the Nasdaq.
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