Form 8-K

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 - Financial Information

Item 2.02. Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On May 5, 2022, Dolby Laboratories, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal quarter ended April 1, 2022. The full text of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

Section 8 - Other Events

Item 8.01. Other Events.

Declaration of Dividend

On May 5, 2022, the Company announced a cash dividend of $0.25 per share of Class A and Class B Common Stock, payable on May 25, 2022 to stockholders of record as of the close of business on May 17, 2022.

Disclosure Channels to Disseminate Information

The Company disseminates information to the public about the Company, its products, services and other matters through various channels, including the Company’s website (www.dolby.com), investor relations website (http://investor.dolby.com), SEC filings, press releases, public conference calls and webcasts, in order to achieve broad, non-exclusionary distribution of information to the public. The Company encourages investors and others to review the information it makes public through these channels, as such information could be deemed to be material information.

Section 9 - Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description

99.1		Press Release of Dolby Laboratories, Inc. dated May 5, 2022
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SAN FRANCISCO, May 05, 2022 (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the company's financial results for the second quarter of fiscal 2022. For the second quarter, Dolby reported total revenue of $334.4 million, compared to $319.6 million for the second quarter of fiscal 2021.

"We feel confident about our long term growth opportunities despite near term headwinds," said Kevin Yeaman, President and CEO, Dolby Laboratories. "Our partners continue to enable a growing number of Dolby Vision and Dolby Atmos experiences through content and devices, and we are expanding our business with new immersive experiences through Dolby.io."

Second quarter GAAP net income was $36.7 million, or $0.36 per diluted share, compared to GAAP net income of $76.2 million, or $0.73 per diluted share, for the second quarter of fiscal 2021. On a non-GAAP basis, second quarter net income was $94.0 million, or $0.92 per diluted share, compared to $94.8 million, or $0.91 per diluted share, for the second quarter of fiscal 2021. Second quarter cash flows from operations was $63.0 million, compared to $83.5 million for the second quarter of fiscal 2021. A complete listing of Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.

Dolby continues to monitor the COVID-19 pandemic and its impact on our company. The safety and well-being of our employees and supporting our communities continue to be priorities. Our revenue continues to be impacted across various markets within licensing and products and services. The implications of COVID-19 on our future results of operations remain uncertain.

Dolby’s financial results for the second quarter of fiscal 2022 rely on estimates of royalty-based revenue that take into consideration the macroeconomic effect of global events, including COVID-19, supply chain constraints, and consumer demand for electronic products. For more information, see the section captioned "Risk Factors" in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2022, filed on or around the date hereof.

Today, Dolby announced a cash dividend of $0.25 per share of Class A and Class B common stock, payable on May 25, 2022, to stockholders of record as of the close of business on May 17, 2022.

Our actual results could differ materially from the estimates we are providing due in part to the increased uncertainty from the ongoing implications of the COVID-19 pandemic in Asia, particularly the shutdowns in China, the geopolitical instability in Europe, and continuing concerns around inflation and supply constraints globally. The uncertainty resulting from these factors has greatly reduced our visibility into our future outlook. To the extent possible, the estimates we are providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see "Forward-Looking Statements" in this press release for a description of certain risks that we face, and the section captioned "Risk Factors" in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2022, filed on or around the date hereof.

Dolby is providing the following estimates for its third quarter of fiscal 2022:

Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2022 financial results for Dolby Laboratories at 1:30 p.m. PT (4:30 p.m. ET) on Thursday, May 5, 2022. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-844-200-6205 (or dialing 1-929-526-1599 for international callers) and entering confirmation code 540172.

A replay of the call will be available from 4:30 p.m. PT (7:30 p.m. ET) on Thursday, May 5, 2022, until 10:30 p.m. PT on Thursday, May 12, 2022 (1:30 a.m. ET on Friday, May 13, 2022), by dialing 1-866-813-9403 (international callers can access the replay by dialing +44-204-525-0658) and entering the confirmation code 703673. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.

To supplement Dolby's financial statements presented on a GAAP basis, Dolby provides certain non-GAAP financial measures to provide investors with an additional tool to evaluate Dolby's operating results in a manner that focuses on what Dolby's management believes to be its ongoing business operations. Specifically, we exclude the following as adjustments from one or more of our non-GAAP financial measures:

Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that we grant. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between our underlying operating results and those of other companies, we exclude stock-based compensation expense.

Amortization of acquisition-related intangibles: We amortize intangible assets acquired in connection with acquisitions. These intangible assets consist of patents and technology, customer relationships, and other intangibles. We record amortization charges relating to these intangible assets in our GAAP financial statements, and we view these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of our acquisitions. As these amortization charges do not directly correlate to our operations during any particular period, and often remain unchanged between reporting periods, we exclude these charges to facilitate an evaluation of our current operating results and comparisons to our past operating performance.

Restructuring charges: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. We exclude restructuring costs, including any adjustments to charges recorded in prior periods, as we believe that these costs are not representative of our normal operating activities and therefore, excluding these amounts enables a more effective comparison to our past operating performance.

Income tax adjustments: We believe that excluding the income tax effect of the aforementioned non-GAAP adjustments provides a more accurate view of our underlying operating results to management and investors.

Other operating income adjustments: In the second quarter of fiscal 2022, we recorded an expense of $34.4 million related to a one-time settlement and accrual in connection with indemnification requests under commercial agreements that we assumed in an acquisition in 2014 related to our Cinema products business. We expect this settlement and related accrual to fully resolve this matter. Also, in the first quarter of fiscal 2021, we recorded a one-time gain on the sale of property, which was previously classified as held for sale. The property was 51% owned by the controlling interest, therefore 51% of the gain recognized has been attributed to the controlling interest. We have excluded both of these items as they are unusual, non-recurring events that are not representative of our normal operating activities and therefore, excluding these amounts enables a more effective comparison to our past operating performance.

Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby's management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby's business. Dolby's management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above. Investors are also encouraged to review Dolby's GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.

Certain statements in this press release, including, but not limited to, statements relating to Dolby's expected financial results for the third quarter of fiscal 2022 and full year fiscal 2022, our ability to advance our long-term objectives, and future dividend payments are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of COVID-19 on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; consumer demand for products that incorporate Dolby technologies; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; the impact to the overall cinema market, including closures or limitations of cinema capacity and resulting adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; temporary Dolby office closures and other actions to protect Dolby’s workforce; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues, such as the conflict between Russia and Ukraine; risks associated with trends in the markets in which Dolby operates, including the Broadcast, Mobile, Consumer Electronics, PC, Cinema, Developer Platform Services, and Other Markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks that the continued shift in content distribution from optical disc-based and other traditional media to online and streaming media content could result in fewer devices with Dolby technologies or less revenue from such devices; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to the expiration of patents; the timing of Dolby's receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby's ability to develop, maintain, and strengthen relationships with industry participants; Dolby's ability to develop and deliver innovative technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture industry generally; Dolby's ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby's SEC filings and reports, including the risks identified under the section captioned "Risk Factors" in our most recent quarterly report on Form 10-Q. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. We partner with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.

Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners. DLB-F

Investor Contact:
Ashley Schwenoha
Dolby Laboratories, Inc.
415-645-5506
investor@dolby.com

Media Contact:
Karen Hartquist
Dolby Laboratories, Inc.
415-505-8357
karen.hartquist@dolby.com

Delaware	001-32431	90-0199783
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, $0.001 par value	DLB	The New York Stock Exchange

	Dolby Laboratories, Inc.


Date: May 5, 2022	By:	/s/ Robert Park
		Robert Park
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

DOLBY LABORATORIES, INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts; unaudited)

	Fiscal Quarter Ended						Fiscal Year-To-Date Ended
	April 1, 2022			March 26, 2021			April 1, 2022			March 26, 2021
Revenue:
Licensing	$	313,833		$	303,585		$	646,117		$	676,590
Products and services		20,538			15,973			39,887			32,842
Total revenue		334,371			319,558			686,004			709,432

Cost of revenue:
Cost of licensing		16,672			16,060			31,607			29,006
Cost of products and services		18,843			16,318			36,617			38,676
Total cost of revenue		35,515			32,378			68,224			67,682

Gross margin		298,856			287,180			617,780			641,750

Operating expenses:
Research and development		67,421			65,808			136,245			129,580
Sales and marketing		84,230			78,046			181,400			153,491
General and administrative		98,693			59,398			161,137			113,852
Gain on sale of assets		—			—			—			(13,871	)
Restructuring charges		5,162			741			5,067			10,764
Total operating expenses		255,506			203,993			483,849			393,816

Operating income		43,350			83,187			133,931			247,934

Other income/(expense):
Interest income		1,098			962			1,814			1,936
Interest expense		(87	)		(167	)		(171	)		(252	)
Other income/(expense), net		(910	)		1,385			(681	)		2,711
Total other income		101			2,180			962			4,395

Income before income taxes		43,451			85,367			134,893			252,329
Provision for income taxes		(6,932	)		(9,022	)		(18,364	)		(33,294	)
Net income including controlling interest		36,519			76,345			116,529			219,035
Less: net (income)/loss attributable to controlling interest		201			(128	)		205			(7,620	)
Net income attributable to Dolby Laboratories, Inc.	$	36,720		$	76,217		$	116,734		$	211,415

Net income per share:
Basic	$	0.36		$	0.75		$	1.15		$	2.09
Diluted	$	0.36		$	0.73		$	1.13		$	2.02
Weighted-average shares outstanding:
Basic		101,343			101,464			101,285			101,090
Diluted		102,707			104,581			103,477			104,414

DOLBY LABORATORIES, INC. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands; unaudited)

	April 1, 2022			September 24, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	900,393		$	1,225,380
Restricted cash		8,445			7,652
Short-term investments		141,688			38,839
Accounts receivable, net		227,263			232,609
Contract assets, net		258,846			182,316
Inventories, net		16,623			10,965
Prepaid expenses and other current assets		68,312			62,737
Total current assets		1,621,570			1,760,498
Long-term investments		124,142			62,819
Property, plant and equipment, net		527,623			534,381
Operating lease right-of-use assets		58,934			67,128
Goodwill and intangible assets, net		498,019			463,584
Deferred taxes		175,238			156,020
Other non-current assets		57,464			61,257
Total assets	$	3,062,990		$	3,105,687

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,373		$	17,779
Accrued liabilities		228,545			262,728
Income taxes payable		3,519			1,334
Contract liabilities		22,109			18,473
Operating lease liabilities		15,413			15,403
Total current liabilities		280,959			315,717
Non-current contract liabilities		24,569			23,713
Non-current operating lease liabilities		48,191			56,715
Other non-current liabilities		104,083			105,310
Total liabilities		457,802			501,455

Stockholders’ equity:
Class A common stock		58			59
Class B common stock		41			41
Retained earnings		2,615,354			2,607,909
Accumulated other comprehensive loss		(15,681	)		(10,030	)
Total stockholders’ equity – Dolby Laboratories, Inc.		2,599,772			2,597,979
Controlling interest		5,416			6,253
Total stockholders’ equity		2,605,188			2,604,232
Total liabilities and stockholders’ equity	$	3,062,990		$	3,105,687

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

GAAP to Non-GAAP Reconciliations
(in millions, except per share data; unaudited)

The following tables present Dolby's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarter and year-to-date period ended April 1, 2022 and March 26, 2021:

Net income:	Fiscal Quarter Ended						Fiscal Year-To-Date Ended
	April 1, 2022			March 26, 2021			April 1, 2022			March 26, 2021
GAAP net income	$	36.7		$	76.2		$	116.7		$	211.4
Stock-based compensation⁽¹⁾		27.7			24.4			60.4			50.7
Amortization of acquisition-related intangibles⁽²⁾		2.7			2.5			5.5			5.0
Other operating income adjustments		34.4			—			34.4			(6.8	)
Restructuring charges		5.2			0.8			5.1			10.8
Income tax adjustments		(12.7	)		(9.1	)		(23.6	)		(23.0	)
Non-GAAP net income	$	94.0		$	94.8		$	198.5		$	248.1

(1) Stock-based compensation included in above line items:
Cost of products and services	$	0.3		$	0.5		$	0.9		$	1.1
Research and development		9.2			7.2			19.3			15.1
Sales and marketing		9.8			9.1			22.1			18.9
General and administrative		8.4			7.6			18.1			15.6

(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing	$	0.6		$	0.7		$	1.3		$	1.4
Cost of products and services		0.6			0.9			1.5			1.8
Research and development		0.1			0.1			0.2			0.2
Sales and marketing		1.1			0.8			2.2			1.6
General and administrative		0.3			—			0.3			—

Diluted earnings per share:	Fiscal Quarter Ended						Fiscal Year-To-Date Ended
	April 1, 2022			March 26, 2021			April 1, 2022			March 26, 2021
GAAP diluted earnings per share	$	0.36		$	0.73		$	1.13		$	2.02
Stock-based compensation		0.27			0.24			0.58			0.49
Amortization of acquisition-related intangibles		0.03			0.02			0.06			0.04
Other operating income adjustments		0.33			—			0.33			(0.06	)
Restructuring charges		0.05			0.01			0.04			0.11
Income tax adjustments		(0.12	)		(0.09	)		(0.22	)		(0.22	)
Non-GAAP diluted earnings per share	$	0.92		$	0.91		$	1.92		$	2.38


Shares used in computing diluted earnings per share		103			105			103			104

The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the third quarter of fiscal 2022 and fiscal 2022 included in this release:

Gross margin:										Q3 2022
GAAP gross margin (low - high end of range)										88.5% - 89.5%
Stock-based compensation											0.2	%
Amortization of acquisition-related intangibles											0.3	%
Non-GAAP gross margin (low - high end of range)										89% - 90%

Operating expenses:				Q3 2022						Fiscal 2022
GAAP operating expenses (low - high end of range)				$214 - $224						$905 - $925
Stock-based compensation					(28	)					(117	)
Amortization of acquisition-related intangibles					(1	)					(4	)
Other operating income adjustments					—						(34	)
Restructuring charges, net					—						(5	)
Non-GAAP operating expenses (low - high end of range)				$185 - $195						$745 - $765

Operating margin:										Fiscal 2022
GAAP operating margin (low - high end of range)										19% - 21%
Stock-based compensation											9	%
Amortization of acquisition-related intangibles											1	%
Other operating income adjustments											3	%
Non-GAAP operating margin (low - high end of range)										32% - 34%

Effective tax rate:				Q3 2022						Fiscal 2022
GAAP effective tax rate (low - high end of range)				19% - 20%						16% - 18%
Stock-based compensation (low - high end of range)				2% - 3%						2% - 5%
Amortization of acquisition-related intangibles (low - high end of range)				(1%) - 0%						(1%) - 1%
Other (low - high end of range)				(1%) - 0%						(1%) - 0%
Non-GAAP effective tax rate (low - high end of range)				18% - 19%						17% - 19%

Diluted earnings per share:	Q3 2022						Fiscal 2022
	Low			High			Low			High
GAAP diluted earnings per share	$	0.28		$	0.43		$	1.98		$	2.48
Stock-based compensation		0.29			0.29			1.15			1.15
Amortization of acquisition-related intangibles		0.02			0.02			0.08			0.08
Other operating income adjustments		—			—			0.33			0.33
Restructuring charges, net		—			—			0.05			0.05
Income tax adjustments		(0.05	)		(0.05	)		(0.32	)		(0.32	)
Non-GAAP diluted earnings per share	$	0.54		$	0.69		$	3.27		$	3.77

Shares used in computing diluted earnings per share		101			101			103			103