Ladies and gentlemen, thank you for standing by. Welcome to the Dolby Laboratories Conference Call discussing Fiscal Third 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. As a reminder, this call is being recorded, Wednesday, July 27, 2016. 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. Elena Carr - Director-Corporate Finance & Investor Relations: Good afternoon. Welcome to Dolby Laboratories' third quarter 2016 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-Q. 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 on 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 our fiscal 2016 outlook and Kevin will finish with a discussion of the business. So with that introduction behind us, I will now turn the call over…

Thank you. To be fair to all participants, we ask that you limit yourself to one question and a follow-up question, until all participants have had a chance in the first round. If time allows, we will then come back to answer any remaining questions. One moment please for the first question. Your first question comes from Mike Olson with Piper Jaffray. Mike J. Olson - Piper Jaffray & Co. (Broker): Hey, good afternoon. I just had a couple questions. You mentioned that some of that year-over-year growth in CE and PC for the quarter was a result of higher license payments, does that imply that these payments were more than normal, and I guess what would drive that if they were – is it just timing of when you get payments versus when you've gotten them in other years, or is it a result of better volumes or what causes that? Lewis Chew - Chief Financial Officer & Executive Vice President: Hey, Mike. This is Lewis Chew. Well, I guess, I didn't have to say Chew, there's only one Lewis in the room. For CE, some of that was additional volume, because we do see growth in DMAs. But in PC, I would say it's not PC, it's really from timing of payments between quarters. So we don't think of PC as growth market, and certainly I already pointed out in mobile world, we are seeing growth in mobile, which then would help in addition to that by the timing of payments this quarter. Mike J. Olson - Piper Jaffray & Co. (Broker): Okay. And then on the new initiatives, I think you previously talked about there being $20 million or so in revenue contribution from new initiatives in fiscal 2016, I realize you're not giving fiscal 2017 guidance…

And we will take our next question from Steven Frankel with Dougherty. Steven Frankel - Dougherty & Co. LLC: Good afternoon. Let me go back to the PC bump again. So I'm just trying to understand whether this was a customer or customers that you thought originally were going to be in Q4, and they ended up in Q3 kind of as a one-time bump and then next year it will be in Q3 again. Just help me understand where it was relative to your expectations. Because you look at the Q4 guide and revenue seems a little light relative to at least where I thought it was going to be. Lewis Chew - Chief Financial Officer & Executive Vice President: Hey, Steve. This is Lewis. Yeah. I think, as I said to Mike earlier, we don't view PC as fundamentally a secular growth market. And we do have to make estimates about timing and amounts between quarters based on a variety of data, and that next year I'm signaling that we would expect to see a bump in Q3 as well. So, we wouldn't attribute that to secular growth. And, yeah, there is some estimating that we have to do on our whole – because, obviously, our PC market revenue in totality is driven by a number of customers. So, there's a number of factors that drive how much we estimate lands in Q3 or Q4. Steven Frankel - Dougherty & Co. LLC: (24:20) I was trying to get you down a little bit. So that was relative to the way we were looking at the company from the outside. Is it fair to say that some of that PC revenue in Q4 got pulled into Q3? Lewis Chew - Chief Financial Officer & Executive Vice President: I don't…

We'll take our next question from Ralph Schackart with William Blair. Ralph E. Schackart - William Blair & Co. LLC: Good afternoon. I kind of want to just follow-up on Steve's question on the guidance to make sure I understand. So, you entered the year forecasting PC revenue number and then, is it fair to say that more of that or a larger portion of that ended up in Q3 versus Q4. And I guess some Street (27:21) speak; we would think of that sort of getting pulled from Q4 to Q3, is that sound accurate? Lewis Chew - Chief Financial Officer & Executive Vice President: Yeah. Ralph E. Schackart - William Blair & Co. LLC: Okay. That's simple. All right. One more then for you Lewis. What would cause the Q4 – assuming you delivered the mid-point of your guidance, what would cause the revenue in Q4 to potentially be sort of down year-over-year, particular in light – with all the new product momentum that you have in the market that continues to grow. Lewis Chew - Chief Financial Officer & Executive Vice President: Yeah. I think some of that is related to the timing, because like I said, the Q3 bump has the dynamics of moving revenue between quarters. It's not anything that we're doing exclusively on our own. It's a result of the arrangements that we reach, so there could be some dynamics going on there. Like I say, if I swoop up to the higher level for the full year, we came into the year thinking revenue would be $1.015 billion at the mid-point, we now see it being $1.020 billion. So, I can rest comfortably knowing that that's being driven by the growth initiatives that we're after a lot earlier as well as some of…

We'll take our next question from Jim Goss with Barrington Research.

Thanks. With the iOS agreement are you on basically all of the Apple devices, all of the iPhones, all of the iPads and what does that bring your attach rate to and mobile devices? Kevin J. Yeaman - President, Chief Executive Officer & Director: Yes. We are included across the iOS device ecosystem. I don't have the exact total mobile number, but I mean you can look to what the Apple's significant share and that plus our other partners. Some of our larger partners outside of Apple include devices from LG, devices from Lenovo, are two of our bigger partners; Amazon has adopted us throughout their Fire line. So, we've made great progress this year in really establishing the value proposition and as I said earlier this is really important, because what it does is, it also encourages more of the content ecosystem to develop and for our content service providers and application developers to be more confident investing their time into creating higher quality experiences, because people are going to experience them. So that's what gives us an opportunity for, to increase the attach, as we go forward.

And it was something like 15% before this agreement is that – am I remembering that correctly? Lewis Chew - Chief Financial Officer & Executive Vice President: Hey, Jim just to clarify you asking what our attach rate was or what was our percent of revenue from mobile.

Well, no, the attach rate and mobile devices. Lewis Chew - Chief Financial Officer & Executive Vice President: Yeah. We've really have not talked openly about our number there for I would say at least a couple of years. So, I don't think that there was a number like that, that would be in anytime – in recent times now.

Okay. And with the new initiatives, is the royalty rate structure similar to some of the prior royalty rates or given the value proposition you're delivering are you getting a better royalty rate levels, as you move into these new agreements? Kevin J. Yeaman - President, Chief Executive Officer & Director: Well, it's still pretty early days, but obviously we've got increasing number of televisions in the market and we're feeling good about the value proposition and the royalty rates I think combined with the adoption of the market give us confidence that this is a good market opportunity for us and that is going to be a contributor to growth in the years to come.

All right. And finally it does appear that an increasing number of the televisions are being sold with 4K HDR, are pretty much all of those compatible with the product you've been delivering or are you sort of the backbone of most of the HDR environments? Kevin J. Yeaman - President, Chief Executive Officer & Director: Well, Dolby Vision is the solution for Vizio, for LG and now a unit from – the first model from... Lewis Chew - Chief Financial Officer & Executive Vice President: Skyworks. Kevin J. Yeaman - President, Chief Executive Officer & Director: ...Skyworks. And we expect a few others in China in the coming quarters. So that's where Dolby Vision is. So outside of that any others are not yet Dolby Vision.

Okay. Thanks for now.

We'll take our next question from Paul Coster with JPMorgan.

Hi, this is Paul Chung on for Paul Coster. Thanks for taking my questions. So, does the acquisition of Vizio cause any disruption to your Vision plans or does it create opportunities to expand in their products or cross-sell Atmos Digital to their multiple product offerings including smartphones? Kevin J. Yeaman - President, Chief Executive Officer & Director: I'll tell you what I – here's what I do know, I know that we have a great presence with Vizio in three of their five lines. I know that LeEco has been a customer of ours for many years on the Dolby Audio side, was one of our early adopters broadly throughout their streaming content pipeline. Dolby Audio solution is included on all of their playback devices, so they are believers in the Dolby Audio experience. So hopefully, certainly we're going to seek to make this an opportunity that two partners have come together, because they see synergies in bringing each of their value propositions more broadly globally and that I think would be an opportunity for us.

Okay. And then switching to Cinema. Can you confirm any potential build-outs with Regal or Cinemark? Do you see, content creators applying any pressure there? Are those discussions taking place? Thank you. Kevin J. Yeaman - President, Chief Executive Officer & Director: Sure. Well, so, I guess what I would say is, we opened our first full Dolby Cinema location just over a year ago. We now have 30 open. We have 220 committed from our partners, which in the United States is AMC, in China it's Wanda and Jackie Chan, in Europe it's View and Cineplex. And we're focused on increasing that pipeline and bringing on new partners. But we're also really focused on closing the gap between the 30 we have installed and then the 220 we already have committed. And we got 50 titles announced or released in just over a year. I don't know that we've ever had that fast of an adoption for any of our technologies. It's faster than Dolby Atmos. And so, the creative community, I think is very, very satisfied with, enthusiastic about the adoption we have in the market and so that ecosystem is coming together really, really well.

Okay. Thank you.

We'll take our next question from Eric Wold with B Riley. Eric Wold - B. Riley & Co. LLC: Thank you. Couple questions on Cinema. So correct me if I'm wrong, the original Wanda agreement was for a 100 installs over five years and now they're accelerating that to have the 100 in two years. Does that indicate more of those are going into existing locations versus new builds? And then, does that complete the – or increase (36:50) the existing deal or there was a some kind of increase in the total number beyond the original 100, never follow-up? Kevin J. Yeaman - President, Chief Executive Officer & Director: Yeah. Well, I don't know whether necessarily this is influenced by their view on existing conversions versus new builds. I mean, they're building, as you know, a lot of new screens. So, I'm not sure if we can draw any correlation. There I didn't noticed any big shift in the mix. But, yeah, their commitment to or they are publicly talking about now installing 100 in two years instead of five years. I think this shows the increasing enthusiasm for the solution and they now have four in the market. I mean, before it was a plan to come to market together. Now, we have four in the market. They've been very well received in the market, just as they've been here in the U.S. We already have our first Chinese title in the market. So, I think it just reflects the enthusiasm. I remember we saw the same thing with AMC. They had started off talking about one timetable and shortly after we got into market together and we showed what we could do together, they accelerated their timetable. It should be talking about 50 by the end of…

At this time we'll take a follow-up from Steven Frankel with Dougherty. Steven Frankel - Dougherty & Co. LLC: Thank you. Lewis, just remind me what did you say broadcast would represent relatively of the license revenue in Q4? Lewis Chew - Chief Financial Officer & Executive Vice President: I said that we anticipated returning to being 45%-plus, which is back to being what I normally think of broadcast being, as a percent of our license. Steven Frankel - Dougherty & Co. LLC: Okay. And then, any commentary on the AMC – Odeon & UCI agreement and does that give you potential expansion opportunities with AMC outside of the U.S.? Kevin J. Yeaman - President, Chief Executive Officer & Director: Well, I think to – I guess just to state, similar to my answer on Vizio and LeEco. I mean it's nice to win, given that we have a very good relationship with Wanda and a very good relationship with AMC; we are going to view that as a potential opportunity. And it was not say we take anything for granted, we feel confident in our value proposition. And we are going to keep demonstrating that around the globe, and we would love to bring the same value proposition more broadly in markets like Western Europe. Steven Frankel - Dougherty & Co. LLC: And one last time on the PC bump, just to beat this thing to death, last year was this particular payment spread in – was it spread evenly through the year, was it in Q4? What did it look last year? Lewis Chew - Chief Financial Officer & Executive Vice President: It was spread evenly last year and there's a bump in Q3 this year. Steven Frankel - Dougherty & Co. LLC: And is that kind of…

And we'll take a follow-up from Ralph Schackart with William Blair. Ralph E. Schackart - William Blair & Co. LLC: Hi. I had actually one more on the China 4K set-top box wins. May be just give us a little bit... Lewis Chew - Chief Financial Officer & Executive Vice President: Yeah. Ralph E. Schackart - William Blair & Co. LLC: ...more color on that, just in terms of how competitive or how long that process took and sort of implications going forward, potentially pave the way for broader Dolby standard in the country. Kevin J. Yeaman - President, Chief Executive Officer & Director: Yeah. Well, this is the – so I think we spoke quite often a couple years ago about the terrestrial specification where Dolby Digital Plus is an option for terrestrial, then we've done well. Since then, getting operators – trusted operators on air, getting television. This is in the IPTV space and I think with these two significant wins we're on roughly, I think about 80% of the licensed IPTV providers have now chosen Dolby Digital Plus. So, Ralph, it all comes down to the pace of the rollout of digital television services in China and depending on each region is that more driven by IPTV, cable, terrestrial, but significant here is that whichever of those things it is, we've been successful at getting the relationships in place to make sure that, that we can play a role, however, that plays out. Ralph E. Schackart - William Blair & Co. LLC: Okay. That's helpful, Kevin. Thank you.

And with no further questions at this time, I'd like to turn the call back over to Kevin Yeaman for any additional or closing remarks. Kevin J. Yeaman - President, Chief Executive Officer & Director: Great. Well, thank you everybody for joining us today, and I will look forward to speaking with you again next quarter. Thanks.

And that does conclude today's conference. Thank you for your participation and you may now disconnect.