DTS reports third quarter 2005 financial results

DTS has reported results for the third quarter ended September 30, 2005.
For the third quarter of 2005, DTS reported revenue of $17.6 million, which compares to $16.0 million in revenue reported in the third quarter of 2004. The increase in revenue over the prior period was largely due to the inclusion of DTS Digital Images revenue in 2005 results. Net income for the third quarter of 2005 was $1.2 million, or $0.07 per diluted share, which compares to net income of $3.2 million, or $0.18 per diluted share, reported in the third quarter of 2004.
“Our financial results were in line with our expectations and guidance for the third quarter, as significant growth rates in our emerging consumer markets and in our cinema hardware business helped offset softness in the DVD-related market,” said Jon Kirchner, President and CEO of DTS. “Additionally, we continued to invest in our business, as planned during the quarter, to support future growth initiatives associated with next generation high definition optical media formats and digital content delivery in cinema.
“In the fourth quarter, we believe that the combination of continued softness in our consumer licensing business coupled with ongoing investments in growth initiatives will impact our business. We are now planning for revenue in the range of $16.0 to $18.0 million and net income per share in the range of $0.03 to $0.05. In 2006, we expect our investments to accelerate growth and advance our competitive position and are currently planning for revenue growth of approximately 15% with EPS in the neighborhood of $0.65, excluding charges related to FAS 123(R).
“We believe that the transition to high-definition optical media players will positively impact growth in the home theatre, PC and game console markets in the second half of 2006 and beyond. This will provide us with a unique opportunity to rapidly scale and leverage our licensing business. Similarly, the movement to digital content delivery in theaters will necessitate a major infrastructure upgrade which should result in significant growth in the sale of hardware, software and services to content providers and theaters. Over time, we believe the successful realization of these opportunities will help us build a far more profitable and diversified digital entertainment company.”
(GB)