Technology
Dolby Laboratories Reports Third Quarter 2024 Financial Results
Published
2 months agoon
By
SAN FRANCISCO, Aug. 7, 2024 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the third quarter of fiscal 2024.
“Our third quarter results were in line with expectations,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “This quarter we continued to build momentum for the content available in Dolby Vision and Dolby Atmos, especially in sports, with viewers around the world enjoying the T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, the NHL and NBA post seasons and right now, the Olympics in Dolby.”
Third Quarter Fiscal 2024 Financial Highlights
Total revenue was $288.8 million, compared to $298.4 million for the third quarter of fiscal 2023.GAAP net income was $38.4 million, or $0.40 per diluted share, compared to GAAP net income of $16.4 million, or $0.17 per diluted share, for the third quarter of fiscal 2023. On a non-GAAP basis, third quarter net income was $68.8 million, or $0.71 per diluted share, compared to $54.1 million, or $0.55 per diluted share, for the third quarter of fiscal 2023.Dolby repurchased approximately 423,000 shares of its common stock and ended the quarter with approximately $72 million of stock repurchase authorization available going forward.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
Cadillac announced the 2025 OPTIQ EV with Dolby Atmos.Electric automotive manufacturer Rivian launched the second generation of its flagship vehicles, the R1S SUV and R1T pickup, that feature support for Dolby Atmos.Great Wall Motors launched its new smart cabin system, Coffee OS 3, and a new automobile model with Dolby Atmos.Transsion added a Dolby enabled low cost phone for consumers in Malaysia.Sharp Singapore launched the R8s Pro smartphone series with Dolby Vision and Dolby Atmos.Realme launched the GT6, the first smartphone to support Dolby Vision video capture in telephoto video.The T20 Cricket World Cup, UEFA EURO 2024, Wimbledon, and the NHL and NBA post seasons were all available in Dolby Atmos and Dolby Vision.Comcast announced that the 2024 Olympics coverage will be available in Dolby Vision and Dolby Atmos.Sonos launched headphones that support Dolby Head Tracking with Dolby Atmos.VIZIO announced integration of Dolby Atmos across its entire 2024 soundbar lineup.Lenovo launched several new flagship products that support Dolby Vision and Dolby Atmos – including the Yoga Air, moto razr, and moto S50 Neo.Melco Resorts & Entertainment opened Studio City Cinema, which is the first Dolby Cinema in the Hong Kong Macau Region.
Dividend
Today, Dolby announced a cash dividend of $0.30 per share of Class A and Class B common stock, payable on August 27, 2024, to stockholders of record as of the close of business on August 19, 2024.
Stock Repurchase Program
Today, Dolby also announced that its Board of Directors has approved increasing the size of its stock repurchase program by $350 million, bringing the amount available for future repurchases of its Class A Common Stock to approximately $422 million. Stock repurchases under this program may be made through open market transactions, negotiated purchases, or otherwise, at times and in amounts that the company considers appropriate.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2024, to be filed on or around the date hereof.
Dolby is providing the following estimates for its fourth quarter of fiscal 2024:
Total revenue is estimated to range from $300 million to $320 million.Licensing revenue is estimated to range from $275 million to $295 million.Gross margins are anticipated to be approximately 88%.Operating expenses are anticipated to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.Effective tax rate is anticipated to be around 29% on a GAAP basis and around 23% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.31 to $0.46 on a GAAP basis and from $0.61 to $0.76 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2024:
Total revenue is expected to range from $1.27 billion to $1.29 billion.Gross margins are anticipated to be roughly 89%.Operating expenses are anticipated to range from $875 million to $885 million on a GAAP basis and from $735 million to $745 million on a non-GAAP basis.Dolby expects operating margins on a GAAP basis to be roughly 20% and on a non-GAAP basis to be roughly 31%.Diluted earnings per share is anticipated to range from $2.40 to $2.55 on a GAAP basis and from $3.60 to $3.75 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss third quarter fiscal 2024 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, August 7, 2024. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-888-210-2212 (+1-646-960-0390 for international callers) and entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Wednesday, August 7, 2024, until 8:59 p.m. PT (11:59 p.m. ET) on Wednesday, August 14, 2024 by dialing 1-800-770-2030 (+1-647-362-9199 for international callers) and entering the confirmation code 5587811. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the fourth quarter of fiscal 2024 and full year fiscal 2024, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally, including the continued impacts of the recent strikes by the WGA and SAG-AFTRA; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. Dolby partners with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
June 28,
2024
June 30,
2023
June 28,
2024
June 30,
2023
Revenue:
Licensing
$ 267,082
$ 273,108
$ 899,089
$ 932,727
Products and services
21,736
25,262
69,826
76,455
Total revenue
288,818
298,370
968,915
1,009,182
Cost of revenue:
Cost of licensing
17,386
15,610
48,440
50,334
Cost of products and services
18,277
25,905
58,060
66,680
Total cost of revenue
35,663
41,515
106,500
117,014
Gross profit
253,155
256,855
862,415
892,168
Operating expenses:
Research and development
65,501
68,696
195,027
201,097
Sales and marketing
77,518
85,594
246,559
263,494
General and administrative
69,275
69,954
201,183
191,865
Restructuring charges
4,078
16,676
7,674
16,465
Total operating expenses
216,372
240,920
650,443
672,921
Operating income
36,783
15,935
211,972
219,247
Other income/(expense):
Interest income/(expense), net
9,439
7,202
27,223
18,806
Other income, net
3,942
620
13,550
2,967
Total other income
13,381
7,822
40,773
21,773
Income before income taxes
50,164
23,757
252,745
241,020
Provision for income taxes
(10,509)
(7,352)
(47,295)
(49,284)
Net income including noncontrolling interest
39,655
16,405
205,450
191,736
Less: net income attributable to noncontrolling interest
(1,211)
(6)
(2,195)
(266)
Net income attributable to Dolby Laboratories, Inc.
$ 38,444
$ 16,399
$ 203,255
$ 191,470
Net income per share:
Basic
$ 0.40
$ 0.17
$ 2.13
$ 2.00
Diluted
$ 0.40
$ 0.17
$ 2.09
$ 1.96
Weighted-average shares outstanding:
Basic
95,686
95,658
95,593
95,794
Diluted
96,959
97,459
97,412
97,588
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
June 28,
2024
September 29,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 741,636
$ 745,364
Restricted cash
36,988
72,602
Short-term investments
127,321
139,148
Accounts receivable, net
285,843
262,245
Contract assets, net
190,803
182,130
Inventories, net
34,716
35,623
Prepaid expenses and other current assets
51,348
50,692
Total current assets
1,468,655
1,487,804
Long-term investments
117,901
97,812
Property, plant, and equipment, net
477,686
481,581
Operating lease right-of-use assets
39,857
40,199
Goodwill and intangible assets, net
553,096
575,836
Deferred taxes
219,822
201,860
Other non-current assets
96,618
94,674
Total assets
$ 2,973,635
$ 2,979,766
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 16,413
$ 20,925
Accrued liabilities
280,611
351,399
Income taxes payable
12,294
4,769
Contract liabilities
32,650
31,505
Operating lease liabilities
12,568
13,628
Total current liabilities
354,536
422,226
Non-current contract liabilities
35,647
39,997
Non-current operating lease liabilities
35,619
37,020
Other non-current liabilities
100,401
108,339
Total liabilities
526,203
607,582
Stockholders’ equity:
Class A common stock
53
53
Class B common stock
41
41
Retained earnings
2,462,928
2,391,990
Accumulated other comprehensive loss
(30,172)
(36,984)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,432,850
2,355,100
Noncontrolling interest
14,582
17,084
Total stockholders’ equity
2,447,432
2,372,184
Total liabilities and stockholders’ equity
$ 2,973,635
$ 2,979,766
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
June 28,
2024
June 30,
2023
Operating activities:
Net income including noncontrolling interest
$ 205,450
$ 191,736
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
54,199
61,428
Stock-based compensation
90,146
90,291
Amortization of operating lease right-of-use assets
8,745
9,829
Amortization of premium on investments
(2,586)
(179)
Benefit from (provision for) credit losses
(2,382)
(348)
Deferred income taxes
(18,009)
(21,653)
Other non-cash items affecting net income
(6,181)
(1,751)
Changes in operating assets and liabilities:
Accounts receivable, net
(21,319)
43,546
Contract assets, net
(8,642)
(10,105)
Inventories
(4,615)
(2,425)
Operating lease right-of-use assets
(7,681)
(3,799)
Prepaid expenses and other assets
7,527
775
Accounts payable and accrued liabilities
(80,837)
(83,737)
Income taxes, net
15,265
14,975
Contract liabilities
(3,189)
(1,686)
Operating lease liabilities
(2,577)
(7,452)
Other non-current liabilities
(12,232)
2,621
Net cash provided by operating activities
211,082
282,066
Investing activities:
Purchases of marketable securities
(147,646)
(123,075)
Proceeds from sales of marketable securities
4,451
54,020
Proceeds from maturities of marketable securities
140,839
139,423
Purchases of property, plant, and equipment
(22,628)
(22,154)
Business combinations, net of cash and restricted cash acquired
—
25,703
Net cash provided by (used in) investing activities
(24,984)
73,917
Financing activities:
Proceeds from issuance of common stock
39,487
37,231
Repurchase of common stock
(139,999)
(124,276)
Payment of cash dividend
(85,971)
(77,584)
Distribution to noncontrolling interest
(4,507)
(266)
Shares repurchased for tax withholdings on vesting of restricted stock
(37,428)
(28,619)
Equity issued in connection with business combination
722
—
Payment of deferred consideration for prior business combinations
—
(500)
Net cash used in financing activities
(227,696)
(194,014)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
2,256
8,819
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(39,342)
170,788
Cash, cash equivalents, and restricted cash at beginning of period
817,966
628,371
Cash, cash equivalents, and restricted cash at end of period
$ 778,624
$ 799,159
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
Market
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Broadcast
$ 95,430
36 %
$ 102,966
38 %
$ 313,326
35 %
$ 349,271
37 %
Mobile
63,096
24 %
50,363
18 %
187,073
21 %
207,775
22 %
CE
28,352
11 %
34,417
13 %
123,793
14 %
128,515
14 %
PC
27,606
10 %
29,489
11 %
107,223
12 %
97,122
10 %
Other
52,598
19 %
55,873
20 %
167,674
18 %
150,044
17 %
Total licensing revenue
$ 267,082
100 %
$ 273,108
100 %
$ 899,089
100 %
$ 932,727
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the third quarter and year-to-date periods ended June 28, 2024 and June 30, 2023:
Net income:
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
(in thousands)
June 28,
2024
June 30,
2023
June 28,
2024
June 30,
2023
GAAP net income attributable to Dolby Laboratories, Inc.
$ 38,444
$ 16,399
$ 203,255
$ 191,470
Stock-based compensation (1)
29,337
29,224
90,146
90,291
Amortization of acquisition-related intangibles (2)
3,101
3,031
9,256
6,750
Restructuring charges
4,078
16,676
7,674
16,465
Income tax adjustments
(6,210)
(11,255)
(19,751)
(20,910)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 68,750
$ 54,075
$ 290,580
$ 284,066
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 373
$ 375
$ 1,139
$ 1,309
Research and development
9,456
9,681
28,511
29,829
Sales and marketing
9,726
9,756
30,134
30,759
General and administrative
9,782
9,412
30,362
28,394
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 54
$ 62
$ 101
$ 185
Cost of products and services
524
866
1,582
2,599
Research and development
—
—
—
254
Sales and marketing
651
806
1,957
2,415
General and administrative
1,872
1,297
5,616
1,297
Diluted earnings per share:
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
June 28,
2024
June 30,
2023
June 28,
2024
June 30,
2023
GAAP diluted earnings per share
$ 0.40
$ 0.17
$ 2.09
$ 1.96
Stock-based compensation
0.30
0.30
0.93
0.93
Amortization of acquisition-related intangibles
0.03
0.03
0.09
0.06
Restructuring charges
0.04
0.17
0.07
0.17
Income tax adjustments
(0.06)
(0.12)
(0.20)
(0.21)
Non-GAAP diluted earnings per share
$ 0.71
$ 0.55
$ 2.98
$ 2.91
Weighted-average shares outstanding – diluted (in thousands)
96,959
97,459
97,412
97,588
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the fourth quarter of fiscal 2024 and full year fiscal 2024 included in this release:
Operating expenses (in millions):
Q4 2024
Fiscal 2024
GAAP operating expenses (low – high end of range)
$225 – $235
$875 – $885
Stock-based compensation
(31)
(120)
Amortization of acquisition-related intangibles
(4)
(12)
Restructuring charges
—
(8)
Non-GAAP operating expenses (low – high end of range)
$190 – $200
$735 – $745
Operating margin:
Fiscal 2024
GAAP operating margin
20% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
1 %
Restructuring charges
1 %
Non-GAAP operating margin
31% +/-
Effective tax rate:
Q4 2024
GAAP effective tax rate
29 %
Stock-based compensation (low – high end of range)
(5%) – 1%
Amortization of acquisition-related intangibles (low – high end of range)
(2%) – 0%
Non-GAAP effective tax rate
23 %
Diluted earnings per share:
Q4 2024
Fiscal 2024
Low
High
Low
High
GAAP diluted earnings per share
$ 0.31
$ 0.46
$ 2.40
$ 2.55
Stock-based compensation
0.31
0.31
1.23
1.23
Amortization of acquisition-related intangibles
0.03
0.03
0.13
0.13
Restructuring charges
—
—
0.08
0.08
Income tax adjustments
(0.04)
(0.04)
(0.24)
(0.24)
Non-GAAP diluted earnings per share
$ 0.61
$ 0.76
$ 3.60
$ 3.75
Weighted-average shares outstanding – diluted (in thousands)
97,000
97,000
97,200
97,200
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
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SOURCE Dolby Laboratories, Inc.
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Presenting Achievements in Open Cooperation and Development in Multiple Dimensions
This CIFTIS’s Shougang Park venue is composed of nine thematic exhibitions, including telecommunications, computer and information services; financial services; culture & tourism services; education services; sports services; supply chain & business services; engineering consulting & construction services; health services; and environmental services. It circles around cultivating new quality productive forces while showcasing the latest achievements, technologies, and applications in the digitalization, intelligentization, and greening of services trade, creating a “debut stage” for global services trade.
Shijingshan leverages its strengths by organizing five thematic exhibitions and four promotional booths on-site. The culture & tourism services exhibition promoted Shijingshan’s rich culture and tourism resources, while also building a support area for paired assistance to highlight its revitalization efforts to a global audience. The financial services exhibition showcased its achievements in economic development across five sectors, that is, sci-tech finance, green finance, inclusive finance, pension finance, and digital finance. The exhibition of telecommunications, computer and information services highlighted the growth of Shijingshan’s the artificial intelligence large model industry cluster and key humanoid robot enterprises. In addition, the primary and secondary school science education experimental zone invited participation from six national-level science education centers, including Shijingshan District, to display their accomplishments. Four schools, including the Beijing National Day School Shijingshan, showcased their scientific research and learning outcomes through visual presentations and videos, while also engaging visitors in interactive science experiments.
The AIES Beijing Open is made up of four competition areas, virtual cycling, virtual rowing, virtual dance, and virtual table tennis. The event welcomed international competitors, domestic professional athletes, high-level amateurs, and university students, while showing the achievements of the “digital + sports” industry. Besides, four promotional booths focused on taxation, justice, investment, and commerce showcases Shijingshan’s tax and judicial policies, offering one-stop policy guidance for participating businesses and visitors. These booths also clarified investment promotion policies, creating a unique event that integrates commerce, tourism, culture, and sports.
Working Together for Global Open Cooperation and Development
The Open Cooperation Forum 2024 was held on the afternoon of September 13. Experts, scholars, government representatives, and business leaders from both domestic and international backgrounds gathered at the Shougang Park to engage in in-depth discussions on promoting high-level open cooperation and supporting regional economic development. Shijingshan District is committed to taking industrial transformation as the strategic foundation for its initiatives, establishing several distinctive industrial parks, including the Intelligent Technology Park, Industrial Internet Park, Virtual Reality Park, Science Fiction Industry Cluster, and Artificial Intelligence Large Model Cluster. What’s more, the district is focusing on new opportunities in future information, future health, future manufacturing, and future space, continually enhancing its innovation capacity, development vitality, economic strength, and overall competitiveness.
It is dedicated to expanding openness as a key driver for integrating into the capital’s new development pattern. The district capitalizes on a range of policy opportunities, including the construction of Beijing’s two zones, effectively leveraging the role of expanding services and deepening economic reforms. It continues to optimize the business environment, actively participates in organizing the CIFTIS, and develops high-standard international cooperation zones to provide a broad platform and efficient services for enterprises to settle and cluster. Shijingshan aims to implement high-level openness to promote high-quality development, enhance mechanisms for foreign openness, innovate and elevate services trade, and align with international economic and trade standards, creating a premier business environment characterized by marketization, rule of law, and internationalization.
Three parallel forums took place during this CIFTIS. With the theme of “Leveraging Overseas Strength for Development • Pursuing Broad Horizons Through Innovation”, the Dream Incubator of Overseas Chinese Beijing Forum set up ten sub-venues abroad, aiming to enhance the involvement of overseas Chinese’s capital and expertise in Beijing’s high-quality development. The Artificial General Intelligence Computility Forum focused on “Releasing New Quality Productive Forces with Unbounded Intelligence and Computational Foundations”, where industry experts and scholars explored new possibilities in artificial general intelligence computility. The Digital Energy Development Forum 2024, themed as “Energizing the Future with Digital Innovation”, showcased a range of quality development achievements and finalized partnerships for several high-quality projects, uniting all parties to advance digital innovation and development.
The rich array of side events is one of the highlights of this CIFTIS. The International Open Cooperation Promotion Conference circled around developing the international open cooperation zone, drawing representatives from international organizations, leading global companies, and prospective businesses seeking to establish a presence in these areas. It centered on the advantages of Shijingshan’s key industries to attract target enterprises. Furthermore, the Roundtable Discussion of Foreign-Funded Enterprises engaged representatives from international organizations, business associations, and foreign-funded companies from countries like Malaysia, Singapore, and France to explore collaboration in aligning with high-standard international economic and trade rules, as well as market access in the service sector, sharing the successes of modernization with Chinese characteristics.
To enhance the consumer experience for attendees of the CIFTIS, Shijingshan has expanded its comprehensive service offerings in areas such as food, accommodation, transportation, tourism, entertainment and shopping. The Second “Here I Am for CIFTIS” Shijingshan Culture and Tourism Carnival has been significantly upgraded, evidenced by the “Divine Beasts Ascend to Immortal Mountain”: Enchanting Night Tour in Shijing Mountain. The “Surprises Await in Shijingshan. Hey There, CIFTIS!” promotional event was held during the 14th Shijingshan Consumption Festival. This included online surprise announcements and a consumption map showcasing quality shopping venues. Special surprise floats were on display, with oversized themed shopping bags distributed. Shopping centers like Joy City, Xirondo Plaza, Modern Plaza, and Chang’an Mills in Shijingshan also launched supporting promotional activities. Business tours in Shijingshan offered three dedicated routes, inviting exhibitors from digital technology, finance and insurance, culture and tourism, and sports related industries to explore relevant industrial parks and attractions for in-depth exchanges.
The China International Fair for Trade in Services 2024 has successfully concluded. Utilizing this platform, Shijingshan has once again showed its high-quality development achievements and favorable business environment to a global audience. We look forward to collaborating with more partners in an open and inclusive manner to create a win-win future.
View original content:https://www.prnewswire.com/news-releases/shijingshan-committed-to-high-level-openness-302254872.html
SOURCE Open Cooperation Forum
Technology
Most Users Are NOT Using AI Companion as Their AI Girlfriend – Insights from Muah AI User Survey
Published
2 hours agoon
September 22, 2024By
LOS ANGELES, Sept. 22, 2024 /PRNewswire/ — Muah AI/
In a world where artificial intelligence (AI) is becoming increasingly intertwined with daily life, the idea of having an AI companion or even an AI “girlfriend” has gained significant attention. While this concept has sparked curiosity, excitement, and even controversy, a recent survey by Muah AI has shed light on the reality of how users are actually engaging with these AI companions. According to the survey results, fewer than 2% of users consider themselves to be in a serious romantic relationship with their AI companion, with the overwhelming majority regarding it as a source of entertainment and roleplaying.
This revelation presents an interesting twist to the popular narrative surrounding AI and human relationships. Many assumed that, with the rise of sophisticated AI that can mimic human emotions and responses, people would begin forming deep emotional bonds with these digital entities. However, the survey data from Muah AI shows that, at least for now, the vast majority of users are not taking these AI relationships as seriously as some might have thought.
The Emergence of AI Companions
AI companions, or “AI girlfriends” as some platforms market them, have become a hot topic over the past few years. Platforms like Replika, Anima, and Muah AI offer users the chance to interact with a personalized AI, which can carry on conversations, offer emotional support, and even engage in roleplaying scenarios that resemble a relationship. The premise is simple: using advanced machine learning algorithms and natural language processing, these AI companions can learn from their users, creating the illusion of intimacy and personalization.
The potential appeal is obvious. For those who are lonely, socially anxious, or seeking comfort, the idea of having an AI that is always available, non-judgmental, and designed to cater to their emotional needs can be incredibly attractive. In fact, there are numerous reports and anecdotes from individuals who claim to have developed genuine emotional connections with their AI companions. But as the Muah AI survey shows, these instances may be far rarer than media headlines suggest.
Survey Results: Entertainment Over Emotional Investment
Muah AI‘s survey provides a comprehensive look at how its users interact with their AI companions, and the results challenge the notion that most users are looking for a serious relationship with AI. According to the data:
Less than 2% of users consider themselves to be “seriously dating” their AI companion.A significant majority view their interactions with the AI as a form of entertainment or roleplaying rather than a meaningful romantic or emotional connection.Many users engage with AI companions out of curiosity or as a way to pass the time, often treating the interactions as light-hearted and fun rather than a substitute for a real-life relationship.A notable portion of users also expressed that they enjoy using AI companions for creative roleplaying scenarios, where they can explore fictional or fantasy-based interactions without any real-world implications.
This data suggests that while the idea of an “AI girlfriend” may be intriguing, most users are not approaching it with the intention of forming a serious romantic bond. Instead, they are treating it more like a game or simulation, where they can experiment with different types of interactions and relationships in a low-stakes environment.
Why Are Users Hesitant to Commit to AI Companions?
There are several reasons why users may be hesitant to view their AI companion as a genuine romantic partner. First and foremost is the awareness of the artificial nature of the interaction. While AI can simulate human conversation and emotions, most users are well aware that these responses are pre-programmed and algorithmically generated. The knowledge that their “partner” is ultimately a machine can create a barrier to forming a deep emotional connection.
Moreover, many users view AI companions as a tool for escapism or fantasy rather than a replacement for real-life relationships. In the same way that people may enjoy playing video games or engaging in fictional roleplaying, interacting with an AI companion can offer a similar outlet for creativity and entertainment. These users are not seeking emotional fulfillment from the AI but rather a way to explore different scenarios and personalities without the complexities of real-world dynamics.
Additionally, there are ethical and philosophical concerns that may prevent users from seriously considering a relationship with AI. The idea of forming a romantic connection with a machine raises questions about authenticity, consent, and the nature of love. Many users may feel uncomfortable with the idea of developing feelings for an entity that lacks true emotions or consciousness, no matter how convincing the simulation may be.
The Future of AI Companions: Entertainment or Emotional Support?
While the Muah AI survey indicates that most users are not taking their AI companions seriously as romantic partners, that does not mean that AI companions are without value. For many, these AI entities serve as a valuable source of emotional support and companionship. Users who are isolated, dealing with mental health challenges, or simply looking for someone to talk to may find comfort in the consistent and non-judgmental nature of an AI companion.
Furthermore, the role of AI in human relationships may evolve as the technology continues to improve. As AI becomes more advanced, it is possible that future iterations of AI companions could offer even more realistic and emotionally engaging interactions. This could blur the line between entertainment and emotional connection even further, leading to more users considering AI as a legitimate relationship option.
However, the survey data suggests that for now, AI companions are primarily being used for fun and fantasy rather than serious emotional investment. Whether this changes in the future will depend not only on advancements in AI technology but also on shifting societal attitudes towards AI-human relationships.
Conclusion
The concept of an “AI girlfriend” may have captured the imagination of many, but Muah AI‘s survey reveals that most users are not taking their AI companions seriously as romantic partners. With fewer than 2% of users considering themselves to be in a serious relationship with their AI, it’s clear that the majority view these interactions as a form of entertainment or roleplaying rather than a meaningful emotional connection.
As AI technology continues to develop, it will be fascinating to see how users’ relationships with AI companions evolve. For now, however, it seems that the allure of AI companionship lies more in its ability to entertain and provide creative outlets than in offering a substitute for real-life romantic relationships.
Ultimately, the future of AI-human relationships is still in its early stages, and as AI becomes more capable, the way people engage with these digital companions may change. But as of now, it’s clear that most users are enjoying the novelty of AI companionship without taking it too seriously—at least not yet.
Media/Business Contact Information:
Muah AI
PR Director:
Ashley
Contact Number:
+1 626-677-6013
Company Website:
https://muah.ai
Company email:
love@muah.ai
Feel free to reach out if you are interested in writing a dedicated piece about Muah AI!
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SOURCE Muah AI
Technology
Internet Society Report Highlights Challenges and Recommendations for Internet Connectivity in the Middle East
Published
4 hours agoon
September 22, 2024By
WASHINGTON, Sept. 22, 2024 /PRNewswire/ — The Internet Society (ISOC), a global charitable organization advocating for an open, globally connected, and secure Internet, released a comprehensive report on the state of Internet connectivity across the Middle East and North Africa (MENA) region.
The report underscores Internet connectivity as a catalyst for economic growth and social development and how an increase in fixed broadband access has a direct impact on growing gross domestic product (GDP).
Key Findings:
Growth in Mobile and Fixed Broadband: Both mobile and fixed broadband connections have grown substantially from 2015 to 2021, particularly in Gulf States with advanced fiber-optic and 5G networks. However, deployment has been slower in other parts of the region, primarily due to infrastructure challenges and affordability issues.
Mobile Internet users increased from 130M to over 180M between 2016 and 2021, with Egypt, Tunisia, and Morocco showing the highest growth rates. Fixed broadband users rose from 17M to 29M in the same period, with Egypt leading the way. The Arab region lags behind other regions in fiber optic deployment, with stagnation in investment since 2018.
High-Income Countries: Significant progress in broadband infrastructure, especially in Gulf Cooperation Council (GCC) countries due to 5G rollout. High-income countries improved their Internet availability from 77.34 to 79.37, surpassing global averages.Low-Middle-Income Countries: Broadband has improved modestly, but challenges persist. Despite overall progress, a significant digital divide remains between high-income and low-middle-income countries, partly due to political and economic instability in some regions, such as Tunisia and Syria.
Infrastructure Challenges: There is a heavy reliance on European Internet Exchange Points for international Internet traffic, which results in slower speeds due to additional data hops.
Emerging Technologies: The report emphasizes the role of emerging technologies such as High-Throughput Satellites (HTS) and Low-Earth Orbit (LEO) satellites in bridging the connectivity gap. These technologies are crucial for expanding access to underserved rural areas.
Impact of COVID-19: The COVID-19 pandemic has adversely affected network performance and digital transformation plans, causing delays and disruptions in connectivity improvements.
Recommendations:
Policy and Regulation: The Internet Society advocates revising regulatory frameworks to accelerate infrastructure deployment. Key recommendations include enhancing spectrum policies, removing regulatory barriers, and fostering public-private partnerships to drive investment, competition, and support for small and medium enterprises.
Spectrum Availability: North African countries have limited spectrum compared to global averages, impacting network capacity and costs.Regulatory Frameworks: Enhance regulatory frameworks to foster investment, encourage spectrum and infrastructure sharing, and support new technologies like HTS and LEO satellites.
Collaboration and Investment: Promote public-private partnerships and update national broadband plans to improve infrastructure and connectivity.
Digital Skills and Literacy: Addressing digital skills and literacy is crucial for maximizing the benefits of Internet connectivity. The report calls for more affordable, relevant, and inclusive education and training programs to build a digital workforce.
Local Internet Exchange Points (IXPs): The report stresses the importance of establishing and upgrading IXPs to enhance local Internet traffic, reduce costs, and improve service quality. Governments are encouraged to support IXPs by providing resources and facilitating network interconnections.
“The Internet has become indispensable for many people, and its role in connecting people, fostering economic opportunities, and driving innovation is undeniable. The Arab region has made big leaps in the availability and adoption of the Internet in recent years; however, adoption rates are still low. We hope that governments will use our report to learn about the improvements that can be made in infrastructure deployment, affordability of service, market structure, and regulatory frameworks,” explains Nermine El Saadany, Regional Vice President for the Middle East for the Internet Society.
About the Internet Society
Founded by Internet pioneers, the Internet Society (ISOC) is a global charitable organization dedicated to ensuring the open development, evolution, and use of the Internet. Through a global community of chapters and members, the Internet Society collaborates with a wide range of groups to promote the technologies that keep the Internet safe and secure and advocates for policies that enable universal access. The Internet Society is also the organizational home of the Internet Engineering Task Force (IETF).
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View original content:https://www.prnewswire.co.uk/news-releases/internet-society-report-highlights-challenges-and-recommendations-for-internet-connectivity-in-the-middle-east-302251836.html
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