Dolby Laboratories announced unaudited consolidated earnings results for the first quarter ended January 1, 2016. For the quarter, the company reported total revenue of $240,814,000 compared to $234,238,000 a year ago. Operating income was $39,188,000 compared to $53,539,000 a year ago. Income before income taxes was $39,484,000 compared to $54,316,000 a year ago. Net income attributable to company was $30,901,000 or $0.30 per diluted share compared to $41,357,000 or $0.40 per basic and diluted share a year ago. Net cash provided by operating activities was $67,395,000 compared to $3,445,000 a year ago. Purchase of PP&E was $24,368,000 compared to $21,661,000 a year ago. Purchase of intangible assets was $105,270,000 compared to $6,416,000 a year ago. Non-GAAP net income was $48.6 million or $0.48 per diluted share compared to $58.5 million or $0.56 per diluted share a year ago.

For the second quarter of fiscal year 2016, the company estimates that total revenue for the second quarter of fiscal 2016 will range from $255 million to $270 million. Gross margin percentages are projected to range between approximately 89% and 90% on a GAAP basis and between 90% and 91% on a non-GAAP basis. The company anticipates that operating expenses will be between $171 million and $175 million on a GAAP basis and between $153 million and $157 million on a non-GAAP basis. The company estimates that diluted earnings per share will be between $0.42 and $0.48 on a GAAP basis and between $0.57 and $0.63 on a non-GAAP basis. The company estimates that its effective tax rate will be approximately 26% on both a GAAP and non-GAAP basis.

For full year of fiscal 2016, the company anticipates that total revenue will range from $1 billion to $1.03 billion. The company anticipates that operating expenses will be between $685 million and $695 million on a GAAP basis and between $610 million and $620 million on a non-GAAP basis. Full year gross margins on a GAAP basis are projected to range from 89% to 90%, and non-GAAP gross margins should be about 1 point higher, and the effective tax rate for the year is projected to range from 25% to 26%.

The company announced a cash dividend of $0.12 per share of Class A and Class B common stock, payable on February 17, 2016, to stockholders of record as of the close of business on February 8, 2016.