Ladies and gentlemen, thank you for standing by. Welcome to the Dolby Laboratories Conference Call discussing Fiscal Second Quarter Results. During the presentation all participants will be in a listen-only mode. Afterwards you will be invited to participate in a question-and-answer session. (Operator Instructions). As a reminder this call is being recorded, Tuesday, April 29, 2014. I would now like to turn the conference call over to Elena Carr, Director of Corporate Finance and Investor Relations, for Dolby Laboratories. Please go ahead, Elena.

Thank you. Good afternoon. Welcome to Dolby Laboratories Second Quarter 2014 Earnings Conference Call. Joining me today are Kevin Yeaman, Dolby Laboratories' President and CEO; and Lewis Chew, Executive Vice President and Chief Financial Officer. As a reminder today’s discussion will include forward-looking statements. These statements are subject to risks and uncertainties that may cause actual results may differ materially. A discussion of some of these risk and uncertainties can be found in our earnings press release that we issued today under the section captioned 'Risk Factors' as well as in our most recently report on Form 10-Q filed with the SEC. Dolby assumes no obligation and does not intend to update any forward-looking statements made during this call as a result of new information or future events. During this call we'll discuss GAAP and non-GAAP financial measures. A reconciliation between the two is available in our earnings press release and in the Dolby Laboratories Investor Relations Data Sheet on the Investor Relations section of our website. As for the content of this call Lewis will begin with a recap of Dolby's financial results and provide us with fiscal outlook for 2014. Kevin will then finish with a discussion of the business. So with that introduction behind us, I will now turn the call over to Lewis.

Thanks, Elena for that stirring introduction. Good afternoon, everyone. Let’s began by going over revenue. In the second quarter that we just completed total company revenue was $278.6 million and within that revenue from licensing was $258.6 million which was $53 million higher sequentially from Q1 and $32.2 million above last year’s second quarter. Q2 licensing was above what we had originally projected and I’ll address that along with the other details in the following commentary of our licensing revenue by end market. Broadcast represented about 46% of total licensing in the second quarter and included a $24.7 million back payment settlement we reached with a large licensee during the quarter. As a result broadcast licensing revenues increased about 61% sequentially above 37% year-over-year. If we exclude the back payment of $24.7 million from those comparison then broadcast licensing growth would have been about 28% sequentially and would have been about 9% year-over-year. The sequential increase was driven by higher seasonal activity and the year-over-year increase was driven primarily by higher attach rates in TVs. PC revenues represented above 16% of total licensing in Q2. They were down about 4% sequentially and down about 29% compared to last year second quarter. The year-over-year decrease of 29% was much larger than the market decrease mostly due to our transition from Windows 7 to the Windows 8 biz model this was in line with the comments I made in the last earnings call when I said that this Q2 should be the last quarter in which there was such a large gap. Going forward we anticipate that our year-over-year PC revenue trends will be more closely aligned with market trends. Consumer electronic revenues in Q2 comprise about 14% of total licensing. They were down about 11% sequentially and higher by about 4%…

Thank you Lewis and good afternoon everyone. We had a strong second quarter led by broadcast where we continue to increase our presence in emerging markets and in gaming which benefited from the release of the Sony Play Station 4 and the Microsoft Xbox 1. And I am particularly pleased with the momentum we are building in our new initiatives. During today’s call I’ll update you on our progress in each of our key growth areas. Let’s start with mobile, we’ve been steadily growing this business in the last several years. As Lewis discussed we expect our mobile revenue to decline in the next quarter. While we are disappointed that Dolby Digital Plus is not included in recently launched Samsung model we continue to work through our range in the Samsung regarding Dolby Technologies for mobile devices. In any event we expect mobile revenue to come in at about 10% of licensing revenue next quarter and more importantly we continue to see opportunities for growth in the mobile markets. Dolby’s audio solution makes online content even more engaging in mobile devices. Mobile premium content is still on its early stages but is clearly a key vector of growth for the eco system. The Dolby values is best seen when our technologies enable an entire eco-system from content creation to distribution and ultimately the consumer device. A great example of this is Amazon. We partnered with them to enhance the audio experience in the prime instant video library and the full line of Kindle Fire tablets. Together we’ve delivered a premium audio experience in these tablets this is evidenced by the critical acclaim with the impressive audio delivered by the Kindle Fire HD and HDX. This quarter Amazon added to their ecosystem with the launch of Fire TV. Dolby Digital Plus…

Thank you. (Operator Instructions). Your first question comes from Steven Frankel with Dougherty & Company. Steven Frankel - Dougherty & Company: Good afternoon. Kevin I wonder if you might give us a little more detail on the Samsung decision, was it cost that motivated them to get rid of Dolby Digital Plus or -- what are they thinking and what are your chances of getting back into that ecosystem?

Sure so, no first of all as we said in the remarks we are really working through the contract details with them now. It’s come up for its natural renewal cycle. So there is a lot of moving parts right now which I am not going to really not going to get into the details of each of the moving parts except to say that we feel pretty comfortable in saying that it's going to be about 10% of our revenue, mobile that is in Q3 that we have opportunity to grow from there. And that -- yeah everything is still on the table. I think clearly it shows that we have worked to do, if we are going to start shipping in FY but we continue to believe we have a value of proposition to bring at a time when -- yeah I think it's pretty clear that a lot of people in the Smartphone industry are very much focused on cost. But we continue to focus on building value across all the major ecosystems and continue to see growth opportunities from here. Steven Frankel - Dougherty & Company: Okay, and then on Atmos what do you think your share of large format theaters is, excluding IMAX, kind of the house brands, what does that six centers terms of your market shift?

I don’t know if have top of my head the exact number of the house brand in PLF, but it is fair to say that the vast majority of the 440 we haven’t sold and the six centers committed are targeted at the growing PLF market. There is still, I mean on a global basis there is still a lot of room to grow in the existing PLF market and it's also the area where we see quite a lot of investments from our exhibitors where we anticipate their investments to be going forward is in the PLF format. Steven Frankel - Dougherty & Company: Thank you.

Thank you, Mr. Frankel. We’ll take our next question from Mike Olson with Piper Jaffray.

Hey, good afternoon. So you know these [back ins] are difficult for you to predict at this time. But through the remainder of the fiscal year are you seeing anything out there and anticipate anything could be anywhere close to as large as the $24.7 million that you saw this quarter.

Hey Mike this is Lewis, generally no, as I mentioned in my prepared comments when it's that large I think it's fair to call those out. But I think it's also not only fair but it's saying the fact that we always have back ins every quarter. But currently we don't anticipating a singular item of that size for the remainder of this year.

Okay, and then regarding Samsung, would you be willing to kind a share an estimate what percent of your total revenue is in from any Samsung related revenue the last few quarters?

This is Lewis again, we don't break it out that way because as you can imagine we do get revenue from Samsung from a lot of different sources because our technology that goes into things. So no I don't know how much more I can give you on that. We're not going to break it out separately as a subsection of mobile. To me at a high level I think what Kevin and I think even I had in my comments was to sort of reset the safe line of being around 10% of revenue and then kind of grow from there.

Okay, yeah that makes sense. And then Kevin as far as Dolby Vision, can you just repeat what set what we are for kind of initial estimated adoption there and what your expectations are as far as when it potentially gets to be more material part of the business.

Sure, well we're expecting television to be in the market by the end of the year. And in the meantime we have engagement from across the industry from content creation to device manufacturers and everything in between to support the introduction of new televisions later this year.

All right, thank you.

And at this time we do have one question remaining in the queue. (Operator Instructions). We'll take our next question from John Bright with Avondale Partners.

Good afternoon, this is Alex Hu in for John Bright. So just a quick question about the three initiatives namely Atmos, Voice and Vision. I know you guys touched on Atmos and Vision, but for Voice should strategically speaking where do you seeing initiatives going like how you are getting paid and are there any ASPs you can provide us with?

Sure. So strategically this is application of our expertise in sound to bring transformational experience to an experience which frankly has had a lot of people had a lot of frustrations with. We think it's a big opportunity; it's about audio conferencing market. The enterprise audio conferencing market which is what we're targeting first and foremost is about a $4 billion industry that we're serving. And we see a big opportunity here. The way we are getting revenue is both on the scale of the implementation which is to say a fee for each of the ports installed, and then also a share of the minute revenue where the Dolby Voice service is utilized. And then on top of that as we as I mentioned today, later this year we expect to begin shipping the Dolby, the conference phones which will bring that live like experience and connected to the service from capture to playback effectively. And that will be another revenue stream and we've not released the list price on that yet.

Okay, and just follow-up questions. What is the guidance that [CMC] guys be on the revenue by about $30 million and on the bottom line by about like $0.24 or so, on that product the new guidance that you guys provided? It doesn't seem like you guys are flowing through, are you guys are flowing through some of the top line be but not so much on the bottom line. I was just wondering why not flow through like the entire amount.

Yes. I think yes I think a sheer mass exercise like that has limited applications when you got things moving around. So first of all on the revenue be flowing through to the full year guidance, we have two things going on, most of the licensing be does flow through but I've mentioned that we took down our product revenue outlook for the rest of the year only due to timing because we see some of that pushing out but feel good about that going forward. And second in our OpEx we do have to absorb some transaction OpEx that's going on related to Doremi. And we're gone try to get that deal closed as soon as we can to the short [OpEx] they get but some of that is subject to the procedures we have to go through with the regulators. So that's probably causing some of that noise in terms of your flow through

All right, thank you.

All right.

There are no further questions at this time. I'd like to turn the conference back over to our speakers for any additional or closing remarks.

Well, thank you everyone for joining us today. And we look forward to updating again soon.