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Dolby Signs Pact with Microsoft; Shares Jump

May 4, 2012

Audio technology licensor Dolby Labs Inc signed an agreement with Microsoft for the use of its products in the Windows 8 operating system, and posted a second-quarter profit that topped analysts' estimates.

Dolby's shares jumped 19 percent to $44.60 in after-market trade. The stock closed at $37.63 on Thursday on the New York Stock Exchange.

Microsoft will include Dolby Digital Plus 5.1-channel decoding and two-channel encoding in Windows 8 and original equipment manufacturers (OEMs) will pay a base royalty rate to Dolby for using its products, the company said in a statement.

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