For the fourth quarter of 2008, DTS reported revenue of $18.3 million, that’s an increase of 8% over the prior year’s fourth quarter, and income from continuing operations of $2.9 million, or $0.16 per diluted share. This compares to revenue of $16.8 million and income from continuing operations of $4.4 million, or $0.24 per diluted share, reported in the fourth quarter of 2007. In the fourth quarter of 2008, revenue included $2.1 million in royalty recovery payments compared to $4.6 million in the fourth quarter of 2007. Excluding these royalty recoveries, revenue for the fourth quarter of 2008 and 2007 would have been $16.2 million and $12.2 million, respectively, representing a core growth rate of 32%.
Jon Kirchner, president and CEO of DTS, Inc. commented, “We are pleased with our fourth quarter results, posting strong revenue growth and continued profitability. We are encouraged by a number of positive data points on Blu-ray from the holiday season, including rising consumer demand, declining price points, and accelerating content sales. We expect that these trends will drive more Blu-ray revenue over time. Generally, Blu-ray adoption is occurring much faster than DVD did during the first two years of its lifecycle.”