DTS Inc. missed Wall Street expectations for earnings and revenue in the third quarter as the consumer electronics market softened.
The Calabasas audio technology company on Monday reported a net loss of $2.8 million (-16 cents a share) in the quarter ended Sept. 30, compared with net income of $3.9 million (22 cents) in the same period a year earlier. Revenue decreased 14 percent to $30.7 million.
Analysts on average expected net income of 43 cents a share on revenue of $35.7 million, according to Thomson Financial Network.
Taking into account one-time events, DTS reported adjusted net income of $5.7 million (32 cents) for the third quarter, compared with net income of $6.7 million (39 cents) in the same period a year ago.
Chief Executive Jon Kirchner conceded that financial performance was disappointing, which he attributed to a softening market and slower than expected release of new products using DTS technology.
“Despite these short-term headwinds, we are making solid progress in strengthening multiple DTS ecosystems across mobile, wireless audio, cinema and auto,” Kirchner said in a prepared statement.
During the quarter, DTS acquired iBiquity Digital Corp., a Columbia, Md. developer of high-definition radio technology, in a deal valued at $172 million. That acquisition will contribute meaningful growth in revenues, profits and cash flow for the coming year, Kirchner said.
Shares closed down 51 cents, or less than 2 percent, to $30.49 on the Nasdaq.