DTS Inc. (NASDAQ:DTSI) has said that its DTS Headphone:X 7.1 is the audio technology behind Asus’ latest smartphone called ASUS ZenFone 3 Ultra that has just gone on sale in Taiwan. The product is expected to enter additional markets in the coming weeks or months, but it is not clear whether the U.S. includes those markets.
DTS Inc did not reveal the financial benefit it expects from backing the audio system in ASUS ZenFone 3 Ultra, but hinted that the development was a vote of confidence for its premium audio solutions and might pave the way for more business deals with Asus or other brands.
According to DTSI, ASUS ZenFone 3 Ultra is the first smartphone to go on sale featuring its advanced audio technology DTS Headphone:X 7.1.
Besides ASUS ZenFone 3 Ultra, Asus is set to begin rolling out tablet devices featuring DTS Inc’s DTS Headphone:X audio solution in the coming weeks. The ASUS ZenPad tablets will be launched worldwide.
DTSI said in a press release that its DTS Headphone:X is the sound technology behind another Asus tablet already selling in North America. ZenPad Z8 is being offered exclusively through phone carrier Verizon Communications Inc. (NYSE:VZ).
According to DTSI’s head of the Asia-Pacific region, the premium audio solutions they are bringing out will enable customers to get the best out of their mobile devices, especially when it comes to content consumption.
Besides Asus, several other major mobile brands have picked up DTS Inc’s audio solutions. However, Asus’ 6.8-inch ZenFone 3 Ultra is the latest handset to feature the DTS sound technology.
Financial performance
Although DTS Inc didn’t product an estimate of the financial impact it expects from the adoption of its DTS Headphone:X audio technology by Asus, the company beat consensus expectations in 1Q2016. Revenue of $45.2 million topped the consensus estimate of $42.9 million while adjusted EPS of $0.41 surpassed the consensus target of $0.36.
The company is looking forward to full-year 2016 revenue in the range of $180 to $190 million and EPS in the band of $2.10 to $2.25.
