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Can you hear a clear profit?
DTS, Inc. (Nasdaq:DTSI), a leader in high-definition audio solutions, today announced financial results for the third quarter ended September 30, 2014.
“DTS delivered strong revenue and earnings growth in the third quarter. We also made important progress on a number of key strategic fronts during the quarter, including expanding our connected TV business, continuing to build out our Play-Fi ecosystem and preparing for the broader commercialization of Headphone:X in the mobile space,” said Jon Kirchner, Chairman and CEO of DTS, Inc. “As a result of our continued progress, we have again decided to raise our 2014 outlook. Equally important, as we look ahead over the next few years, we feel confident about our opportunities for continued growth as we innovate and increase penetration in the connected TV, mobile and wireless audio markets.”
As of September 30, 2014, DTS had cash and investments totaling $86.5 million and generated $20.2 million in operating cash flow during the third quarter of 2014.
The Company raised its outlook for the full year 2014 and now expects revenue in the range of $140 to $144 million, non-GAAP operating margin in the mid to upper 20s and non-GAAP diluted EPS in the range of $1.48 to $1.55 based on a 30% effective tax rate. Stock-based compensation expense is expected to be in the range of $0.60 to $0.66 per diluted share net of tax and amortization of intangibles is expected to be in the range of $0.51 to $0.57 per diluted share net of tax. On a GAAP basis, the Company expects its effective tax rate to be approximately negative 10% to negative 15%, which is net of $5 to $6 million of discrete item credits. The Company expects GAAP operating margin of approximately 9% to 11% and GAAP diluted EPS in the range of $1.00 to $1.05.
The Company continues to expect its organic growth in 2014 to come primarily from the network-connected markets, specifically connected TVs, mobile devices and PCs. Network-connected markets are expected to represent more than 50% of total revenue in 2014.
