DTS Reports Four Quarter and Fiscal 05 Financial Results

DTS Reports Fourth Quarter and Fiscal 2015 Financial Results

CALABASAS, Calif., March 02, 2016 (GLOBE NEWSWIRE) -- DTS, Inc. (Nasdaq:DTSI), a leader in high-definition audio solutions and audio enhancement technologies, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

Our fourth quarter results were solid, driven by higher than anticipated revenue contributions from iBiquity and strong game console production, said Jon Kirchner, chairman and CEO, DTS, Inc. Although 2015 was a challenging year, we maintained our focus on the network-connected markets where we materially advanced the development of ecosystems for our mobile and wireless audio solutions. Last week at Mobile World Congress, the Jade 2 smartphone from Acer became the worlds first global smartphone to incorporate both Play-Fi and Headphone:X . Additionally, the acquisition of iBiquity has expanded our footprint in the automotive markets, increased the scale and profitability of our business, and strengthened our best-in-class suite of audio solutions, positioning us for continued growth in 2016 and beyond.

Financial Comparison

Q4 2015 Q4 2014

Revenue $ 39.2 million $ 35.2 million

Year-over-Year Growth Rate 11 %

GAAP Net Income (Loss) $ (12.8) million $ 1.9 million

GAAP Diluted Earnings (Loss) Per Share $ (0.74 ) $ 0.11

Non-GAAP Operating Margin 19 % 26 %

Non-GAAP Net Income $ 4.2 million $ 6.2 million

Non-GAAP Earnings Per Share* $ 0.23 $ 0.34

FY 2015 FY 2014

Revenue $ 138.2 million $ 143.9 million

Year-over-Year Growth Rate (4 )%

GAAP Net Income (Loss) $ (12.3) million $ 27.1 million

GAAP Diluted Earnings (Loss) Per Share $ (0.71 ) $ 1.55

Non-GAAP Operating Margin 23 % 27 %

Non-GAAP Net Income $ 21.2 million $ 27.2 million

Non-GAAP Earnings Per Share* $ 1.17 $ 1.55

Supplemental Information

Q4 2015 Amount Per Diluted Share*

Stock-Based Compensation $ 3.6 million $ 0.14

Amortization of Intangibles $ 5.6 million $ 0.22

Acquisition, Integration, Realignment and Legal Costs $ 13.2 million $ 0.52

FY 2015 Amount Per Diluted Share*

Stock-Based Compensation $ 12.3 million $ 0.47

Amortization of Intangibles $ 13.6 million $ 0.52

Acquisition, Integration, Realignment and Legal Costs $ 18.8 million $ 0.73

*Amount Per Diluted Share Net of Tax @ 30%

Excluding royalties from compliance activities, revenue for the fourth quarter 2015 was $37.3 million, an increase of 15% compared to $32.5 million in the fourth quarter of 2014. Excluding royalties from compliance activities, revenue for the fiscal year ended December 31, 2015 was $132.7 million, an increase of 2% compared to $130.6 million in 2014.

Included in the fourth quarter and full year 2015 results was $4.6 million in revenue, $0.9 million in cost of goods sold and $6.8 million in operating expenses from the recently acquired HD Radio business.

The Company closed the year with cash and investments totaling $61.9 million.

The GAAP and non-GAAP reconciling items for the quarters and years ended December 31, 2015 and 2014 can be found in the Non-GAAP Financial Metrics schedule attached to this press release and on the investor relations section of the Companys website at www.DTS.com.

Business Outlook

For fiscal year 2016, the Company expects revenue in the range of $180 to $190 million. The Company expects growth in 2016 to primarily come from the automotive, mobile and wireless audio markets.

The Company expects non-GAAP operating margins in the low-to-mid 30s and non-GAAP diluted EPS in the range of $2.10 to $2.25.

In 2016, stock-based compensation expense is expected to be in the range of $0.52 to $0.53 per diluted share net of tax and amortization of intangibles is expected to be in the range of $0.87 to $0.89 per diluted share net of tax. The Company expects its tax rate excluding discrete items, for both GAAP and non-GAAP purposes, to be approximately 30%. On a GAAP basis, the Company expects operating margins in the range of 10% to 15% and diluted EPS in the range of $0.70 to $0.85.

This outlook is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Companys filings with the Securities and Exchange Commission.

Use of Non-GAAP Financial Information

Included within this press release are non-GAAP financial measures that supplement the Companys Consolidated Statements of Operations prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Companys actual results prepared under GAAP by excluding charges and the related estimated income tax effects for stock-based compensation, the amortization of intangible assets, acquisition and integration, realignment and certain legal costs. Over the past several years, the Companys GAAP tax rate has varied substantially. As a result of the completion of an

LINK:	http://www.dts.com/corporate/press-releases/2016/03/dts-reports-fourth...
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