Ladies and gentlemen, thank you for standing by. Welcome to the Dolby Laboratories Conference Call discussing Fiscal First 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 today, Wednesday, January 30, 2019. I would now like to turn the conference call over to Elena Carr, Director of Investor Relations for Dolby Laboratories. Please go ahead, Elena.

Good afternoon. Welcome to Dolby Laboratories' first quarter 2018 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 to differ materially from the statements made today. A discussion of some of these risks and uncertainties can be found in the earnings press release that we issued today under the section captioned Risk Factors as well as in our most recent Form 10-K. 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 today's call, we will 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 today's call, Lewis will begin with the recap of our results and provide our outlook for 2019, and Kevin will finish with the discussion of the business. So I will now turn it over to Lewis.

Okay. Good afternoon, everybody, and thank you for joining our first quarter call. A quick reminder from some comments I made last earnings call last quarter. The new revenue accounting standard formally referred to as 606 i.e. ASC 606 became effective for us at the beginning of the year, and we adopted that new standard using the full retrospective method and that required us to recast prior year's revenue by applying these new rules retrospectively. So, during my comments today, any comparisons I make to prior year revenue numbers are in reference to those 606 recasted numbers. And in the earnings release that we put out today, we included a table that shows FY 2018 revenue as adjusted under 606 by quarter. So, hopefully that will be helpful. So, here are the Q1 results, in the first quarter of FY 2019, total revenue was $302 million. Within that, licensing revenue was $260 million, which was in line with our expectations, while products and services was $42 million, which was a little above the projections we had for the quarter. Total revenue in Q1 of last year was $300 million and that included a large recovery of more than $20 million in mobile licensing that did not repeat in this year's Q1. So, let's review the trends that we saw in licensing revenue in the end markets that we serve. First, broadcast. Broadcast represented about 38% of total licensing in the first quarter and revenues in this market were down about 2% sequentially, reflecting lower recoveries offset partially by seasonally higher TV revenue. Year-over-year broadcast was down about 9% due to lower recoveries and timing of revenue. Consumer electronics represented about 17% of total licensing in the first quarter. Licensing in this area increased sequentially by about 8% and year-over-year by…

Thank you, Lewis, and good afternoon, everyone. We're off to a strong start to 2019. We're just back from CES where Dolby Vision and Dolby Atmos, but once again on display across the show floor. Before diving in, it's worth reflecting our journey. Three years ago, Dolby Vision was introduced at CES with LG and VIZIO TVs, while Dolby Atmos was just moving beyond AVRs to sound bars. In 2017 at CES, Sony announced support for Dolby Vision and our first combined Dolby Vision and Dolby Atmos experience was launched by LG. Last year, we saw the adoption of these experiences on an increasing range of device types and content services. This year Dolby Vision and Dolby Atmos have become robust ecosystems with increasing momentum across a broad range of content and devices. New announcements included Panasonic's first TV with Dolby Vision and Dolby Atmos. They joined eight other partners that have embraced the combined experience for TVs including LG, Sony and TCL. Dell announced its first Dolby Vision PC, and Lenovo expanded its support for the combined Dolby Vision and Dolby Atmos experience further into its line of PCs. Also at CES, we demonstrated our solutions for mobile including iPhone support of Dolby Vision as well as Samsung and Huawei smartphones with Dolby Atmos. In the home entertainment space, we showcased Apple 4K TV as well as the Amazon 4K Fire TV, both of which support the combined Dolby Vision and Dolby Atmos experience. The number of sound bars supporting Dolby Atmos continues to grow and are available in a broad range of price points. And Xbox, which is the first game console with the combined experience is now in market. We expect the first pay TV set-top boxes with Dolby Vision and Dolby Atmos in market later this…

Thank you. [Operator Instructions] And we will take our first question from Steven Frankel with Dougherty. Please go ahead.

We will now take our next question from Ralph Schackart with William Blair. Please go ahead.

Our next question will come from Eric Wold with B. Riley. Please go head.

We will now take our next question from Jim Goss with Barrington Research. Please go ahead.

[Operator Instructions] We will take our next question from Paul Chung with JPMorgan. Please go head.

And this concludes today's question-and-answer session. I'd now like to turn the call back over to Kevin for any additional or closing remarks.

Great. Thank you all for joining, and we look forward to keeping you updated on our progress.

This concludes today's conference. Thank you for your participation. You may now disconnect.