Investors didn’t like the sound of audio technology firm DTS Inc.’s guidance, so last week they dialed down the company’s stock price.

The Calabasas company licenses audio technology for consumer products such as Blu-ray players and televisions. It makes money by charging manufacturers such as Sony or LG a fee for each device.

But citing weakness in the consumer electronics business, DTS announced Aug. 15 that it now expects revenue between $130 million and $136 million this year, down from a previous projection of $140 million to $146 million.

That sent shares tumbling 16 percent for the week ended Aug. 21 to close at $20.11, making it one of the biggest losers on the LABJ Stock Index. (See page 44.)

“The stock sold off on disappointing guidance,” said Steven Frankel, an analyst who follows DTS at Dougherty & Co. in Minneapolis. “The headwind is slowing demand for consumer electronics.”

One challenge is decreased demand from consumers for disc players.

The firm announced a loss of $2.1 million (11 cents a share) for the quarter ended June 30, compared with a loss of $755,000 in the same period a year earlier. Revenue increased 25 percent to $27.2 million.

James Goss, an analyst who follows DTS at Barrington Research in Chicago, said investors might also be taking profit. The stock is up 20 percent since the start of the year even after the recent dip.

DTS is now banking on continued growth from supplying technology for smartphones, smart TVs and other Internet-connected devices, now the largest part of its business. Revenue from Internet-connected devices doubled in the quarter compared with a year ago.

DTS last year purchased Santa Ana audio technology firm SRS for $148 million to boost its mobile devices business.

Chief Executive Jon Kirchner expressed confidence in the company’s future.

“The long-term drivers for our business and the network-connected market are very much intact,” Kirchner told the Business Journal. “We expect long-term growth to continue and be attractive.”

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