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Dolby issued a press release about Dolby Vision and Atmos enabled products introduced at the Consumer Electronics Show in Las Vegas.

http://investor.dolby.com/releasedetail.cfm?ReleaseID=105380...

This week at the Consumer Electronics Show (CES) in Las Vegas, Dolby Laboratories, Inc. (NYSE:DLB) is showcasing a broad portfolio of audiovisual experiences across a range of price points and devices, driving Dolby Vision™ and Dolby Atmos® adoption in more markets with leading global partners such as Apple, Lenovo, LG, Netflix, Panasonic, Samsung, Sony, TCL, Vestel, and others.

While Christmas shopping at Best Buy this year, I was able to find a variety of Dolby Vision HDR enabled devices. LG had several TVs advertising Dolby. There were also several Atmos sound bars on display. I'm hoping they are reaching the tipping point where revenue will start growing and operating margins will expand. At some point after a long period of product development, I'm hoping to see operating expenses level out (their licensing revenue does not require a lot of incremental op ex to grow). Cap ex is dropping off as they get past the new product development stage, which is resulting in higher free cash flow. Cap ex dropped from $222M in 2016 to $105M in 2017. Free cash flow nearly doubled from $135M to $266M. With no debt and $875M in cash and equivalents, the balance sheet is solid.

This is what happened years ago with Dolby Digital. This time they have more revenue streams audio (Atmos), video (Vision), plus Cinema and Voice all maturing at around the same time. DVD and PC revenue is being mostly replaced by mobile and streaming. This could be a great stock at today's price if management can repeat their past successes... Greg (DLB shareholder, long DLB)
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