DTS Inc. beat Wall Street estimates on earnings on an adjusted basis for the fourth quarter.
The Calabasas audio technology company on Wednesday reported a net loss of $12.8 million (-74 cents a share) in the quarter ended Dec. 31, compared with net income of $1.9 million (11 cents) in the same period a year earlier. Revenue increased 11 percent to $39.2 million.
Analysts on average expected net income of 14 cents a share on revenue of $33.4 million, according to Thomson Financial Network.
Taking into account the exclusion of certain items such as stock-based compensation and acquisition costs, DTS reported adjusted net income of $4.2 million (23 cents) for the fourth quarter, compared with net income of $6.2 million (34 cents) in the same period a year ago.
During the quarter, DTS closed on its acquisition of iBiquity Digital Corp., a Columbia, Md. developer of high-definition radio technology, in a deal valued at $172 million.
Chief Executive Jon Kirchner said the fourth quarter results were helped by higher than anticipated revenue contributions from iBiquity.
“The acquisition of iBiquity has expanded our footprint in the automotive markets, increased the scale and profitability of our business, and strengthened our best-in-class suite of audio solutions, positioning us for continued growth in 2016 and beyond,” Kirchner said in a prepared statement.
Shares closed up 39 cents, or less than 2 percent, to $24.61 on the Nasdaq.