Dolby Laboratories DLB reported fourth-quarter results that were in line with our expectations, and our fair value estimate is unchanged. Revenue was flat with the prior-year quarter, but up 12% for the fiscal year. Weak consumer spending limited growth opportunities during the year, but Dolby's entrenched position continues to generate enviable margins. The company also announced a $250 million stock-repurchase program that should help offset the dilution of stock-based compensation and provides a vehicle for returning capital to shareholders. The core surround-sound business continues to harvest new areas of growth to offset declining DVD player volume. Personal computers and broadcast technologies accounted for 60% of revenue during the quarter, up from 40% three years ago. Dolby is positioned on four of the Windows 7 versions, but we expect this growth to be moderate as it is offsetting lower volume of standalone media players. In our view, the firm's most impressive accomplishment has been securing adoption of its technologies in digital broadcasting standards. During the fiscal year, inclusion in the standards in France, Italy, Spain, and other areas of the European Union have positioned Dolby to be included on digital television sets almost by default. Digital televisions represent less than 50% of the global market, and broadcast remains a promising area of growth for Dolby.
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