UPDATE 2-Dolby Laboratories Q4 profit beats Wall Street view

* Q4 EPS, revenue beat estimates

* Licensing revenue up 33 pct

* Fiscal 2009 outlook cautious * Shares rise as much as 5 pct (Adds conference call details, analyst comment) By Bijoy Anandoth Koyitty

BANGALORE, Nov 6 (Reuters) - Audio technology licensor Dolby Laboratories Inc (DLB.N) beat forecasts with a 10 percent rise in quarterly profit, driven by strong licensing revenue, and forecast 2009 earnings, the upper end of which is in line with market view sending its shares up 5 percent.

Dolby, known for its movie theater surround-sound systems, reported a 33 percent rise in its high-margin licensing revenue at $137.8 million for the fourth quarter ended Sept. 26. Product sales fell 5 percent to $18.6 million.

The company, whose technology is also used in consumer electronic products like DVD players, televisions and gaming consoles, said it expects a profit of $1.57 to $1.77 per share, on revenue of $660 million to $720 million, for fiscal year 2009.

The "cautious" outlook was due to the consumer climate and some obstacles in product cycles, Daniel Ernst, an analyst with Hudson Square Research - Soleil Securities, said.

Ernst said a slow start to Blu-ray sales, and the growth of low-end laptops and notebooks, which in large part do not have the Dolby technology inside, particularly impacted the outlook.

In a conference call with analysts, the company forecast 2009 licensing revenue of $540 million to $580 million and product & services revenue of $120 million to $140 million. [ID:nWNAB9822]

"As a company that ultimately drives much of its revenue from discretionary products and services, we of course are not immune to slowdown in consumer spending," Chief Executive William Jasper said during the call.

Included in the fiscal 2009 outlook is about $5.0 million in estimated restructuring charges for the consolidation of manufacturing operations. The impact of this charge on net income is about $3.0 million, or 3 cents per share.

Analysts were looking for fiscal year 2009 earnings of $1.77 a share, excluding items, on revenue of $710.4 million.

Shares of the company rose to $29.60 in after-hours trading but pared the gains and were trading up at $28.50. They closed at $28.22 in regular session Thursday on the New York Stock Exchange.

Dolby's rivals range from Sony Corp (6758.T) and Philips Electronics (PHG.AS) to SRS Labs Inc (SRSL.O) and DTS Inc (DTSI.O).

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For press release, please double click [ID:nBw066434a] (Editing by Gopakumar Warrier)