Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Can Dolby Turn Up the Volume?

|Includes: Dolby Laboratories, Inc. (DLB), MSFT

 Dolby Laboratories Inc. (NYSE: DLB) is a developer and manufacturer of audio and video products and technologies for the entertainment industry. The company has seen steady growth and consistently high margins for years. But it’s been the victim of a sell-off recently, following an outlook weaker than analysts expected.

Dolby’s primary revenue source is licensing its technologies for use in audio-video equipment. It enjoyed a monopoly during the DVD wave as the exclusive audio format available for DVD playback, receiving royalties from every DVD player sold. It also had a licensing agreement with Microsoft Corp. (Nasdaq: MSFT), earning royalties from every copy of Windows Vista Home Premium or Ultimate sold.

Looking forward to the permeation of Blu-Ray, Dolby lost its monopoly. However… (Continue reading on