DTS Inc. beat Wall Street expectations for the fourth quarter as increased Blu-ray sales created a growing market for the company’s audio format.
The Calabasas developer and licenser of entertainment sound technologies late Monday reported net income of $6.1 million (34 cents a share), up from $4.8 million (27 cents) a year earlier. Revenue rose 27 percent to $26.9 million.
Excluding one-time items, the company had net income of $7.7 million (43 cents). Analysts surveyed by Thomson Reuters on average expected the company’s adjusted earnings to be 31 cents per share on revenue of $24.5 million.
For the fiscal year, DTS had net income of $16 million (90 cents) on $87 million in revenue. Chief Executive Jon Kirchner said the increasing adoption of the Blu-ray video format helped its DTS HD Master Audio system become the dominant audio format.
“With the growth in Blu-ray and rapidly expanding opportunity in connected devices, we are excited about our prospects for 2011 and beyond,” Kirchner said in a statement.
For the current year, the company expects revenue of between $100 million and $105 million, GAAP earnings of $1.04 to $1.12 per share, and adjusted earnings of $1.40 to $1.49 per share. The Wall Street consensus is for per-share profit of $1.15 on revenue of $102 million.
Shares closed up $2.29, or 5 percent, to $47.64 on the Nasdaq.
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