Dolby Laboratories, Inc. (DLB)’s First Quarter 2015 Earnings Conference Call Transcript

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Question and Answer Session:

Operator

We’ll take our first question from Mike Olson with Piper Jaffray.

Mike Olson, Piper Jaffray

Good afternoon. Couple of questions, first of all, broadcast continues to be an area of strength. Is that primarily due to international penetration in new markets with digital broadcast standards that include Dolby? And if that’s the case can you just talk about maybe where we are on that spectrum at this point for worldwide penetration?

Lewis Chew, Executive Vice President and Chief Financial Officer

Yes, it is adoption in international markets, emerging markets, in particular, which is driving the growth in broadcast. We’re still, in terms of the roll out of digital broadcast and use of digital broadcast, still in the pretty early stages in markets like China and India and Africa — the areas I highlighted on the call. Our catch rate is actually a little ahead of that adoption given some of the manufacturers that have gone through single SKU of Dolby Digital Plus around the world, but we still see a really good opportunity for growth in emerging markets over the coming years as they continue to roll out there, and we continue to set our sights on new offerings for those markets as well.

Mike Olson, Piper Jaffray

Yeah, thanks. And then you talked a lot about Atmos Dolby Vision. I realize those could be for both home use and cinema but you also just talked about Dolby Cinema overall. So between that and the Doremi acquisition, would it be fair to suggest that the company is shifting focus to some degree back towards theatrical technologies maybe a slightly less emphasis on the in-home market?

Lewis Chew, Executive Vice President and Chief Financial Officer

Well, we’ve always been focused first and foremost on delivering compelling experiences and working with the content community whether that’s theatrical, episodic television, sports and we’re working beyond that. We are looking to apply our science of sight and sound to deliver compelling experiences and our aim is to do that across all the channels and all the use cases through which customers enjoy that. So, I wouldn’t say that this represents a change in focus at all, but I do think it is a result of the innovation that we’ve invested in the last several years. We have a really unique and differentiated experience to offer to the theatrical industry. At a time where exhibition is really investing in differentiated experiences, the premium large format market is an area where they are seeing some growth and seeing that when they invest in the experience that moviegoers respond and we’re seeing excitement from Hollywood and from content creators around the world with the opportunity to really extend their pallet with Dolby Vision and Dolby Atmos. And of course at the same time we’re looking at developing that pipeline of content and bringing those experiences to the home — with consumer Atmos for the home and Dolby Vision.

Mike Olson, Piper Jaffray

Alright, thanks very much.

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