| | | Quick notes(version1, highlights) - Q1 2018 EPS - 1/24/2018
- Huge increase in mobile revenue(up +200% QoQ), some tied to Recoveries. Just don't understand what that means yet.
- Product revenue was light by about $5M.
- They had two adjustments due to the tax changes, first was the 15.5% tax on their overseas cash, second was a write-down of some tax deferred assets($155M total). They had a $6M tax benefit too from changes in stock based compensation. They expect tax rates to be 20-23% for the year.
- +$17M in free cash flow for the Q, balance up over $1.1B. A/R went up substantially and they expect that cash to come in Q2.
- They have over 10 TV partners for DV now and all announced DV products.
- Dolby Cinema added 20 in Q1 for a total of 133. Total commitments at 360. They expect to add as many in 2018 as they did in 2017. Still too early to understand or provide metrics.
- On track for another 100%+ growth in new products in 2018.
- Very important answer on the impact of tax reform and capital allocation. They pointed out they are buying back shares(495K in Q1) and raising the dividend, but it takes 3-6 month for the offshore cash to become available so changes are still being reviewed.
- A really healthy ecosystem for DV, discussed the next stage of adoption where those that weren't first mover or exceptionally excited about the product come on board as the ecosystem expands, self fulfilling as DV becomes a critical portion of UHD.
- They made an interesting comment about ATSC 3.0 being foundational in HDR or DV, not sure which they meant and not sure exactly what it means, they sounded like it was a big deal. |
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