SAN FRANCISCO (AP) ? Entertainment technology company Dolby Laboratories Inc. said Thursday that its fiscal third-quarter net income and revenue both shrank as prices plunged for its 3-D and digital cinema products.
Net income in the three months through July 1 fell to $61.7 million, or 55 cents per share, from $63.5 million, or 55 cents per share, a year ago.
Revenue fell 5 percent to $219 million from $230.3 million.
The results were slightly better than the 54 cents per share of earnings on $215.5 million in revenue expected by analysts polled by FactSet.
Although licensing revenue rose 7 percent to $181.8 million, product sales fell 46 percent to $28.4 million. Chief Financial Officer Murray Demo blamed the drop in product sales on “lower prices for our 3-D and digital cinema products” and on not repeating a $5 million bump for deferred revenue recognized a year ago.
For the full year, Dolby expects net income per share of $2.61 to $2.70 on revenue of $930 million to $955 million. Analysts were looking for full year profit of $2.60 on revenue of $931.9 million.
The company also said Thursday that its board had approved an additional $250 million in stock repurchases, bringing the total buyback authorization to $392.5 million.
Dolby shares fell $3.08, or 7.6 percent, to close at $37.67 in the regular session Thursday. They fell another $3.67, or 9.7 percent, to $34 after the results were released.