DTS Sells Digital Cinema Business

[Bonzodog]

DTS Inc. sold its digital cinema business in a deal worth $3.3 million, the company announced.

That sale to Beaufort California, Inc., plus the sale in April of its digital images business, allows Agoura Hills-based DTS to focus on its consumer products business.

DTS audio systems are used in home theatre, car audio, PC and game console products.

The company’s first quarter revenues were helped by growth in the high definition optical media markets, primarily related to game consoles and stand-alone players.

For the quarter ending March 31, DTS reported a net income of $1.3 million, or $0.07 per diluted share, on revenues of $15.2 million. For the same period in 2007, the company reported a net loss of $765,000, or $0.04 per diluted share, on revenues of $12.6 million.

Shares in DTS closed down at $28.50.

 

[Bonzodog]

DTS Digital Cinema arm sold off

After a year up for sale, a buyer has now been found for the digital cinema arm of DTS. UK media networks group Beaufort International Group, which is majority-owned by UK-based network service provider Datasat Communications, has acquired DTS Digital Cinema for an undisclosed sum of money.

Datasat is a deliverer of media content through its wholly-owned (mainly) satellite networks, and the acquisition fits into a strategy of widening their reach to the digital cinema space. Up to now, Datasat's content delivery strategy has focused on areas where high quality, secure file trasnfers are necessary, and has avoided media and broadcast industries. However, with the introduction of digital cinema, which needs very secure networks for large files (as opposed to live feeds or pre-recorded broadcasts) this move makes sense.

Currently, company operates in five broad industrial areas: corporate, diplomatic, emergency, security, medical. Beaufort will continue to use DTS brand for the 'foreseeable future'.

DTS is focusing entirely on its consumer side, specifically through licensing branded entertainment technology.

 

[JonUrban]

Sure wish they would go back to delivering new DTS Surround music releases.

 

[Bonzodog]

Sure wish they would go back to delivering new DTS Surround music releases.

All the guys working on that were fired over a year ago.

 

[quadtrade]

All the guys working on that were fired over a year ago.

It is amazing JK let that go on so long. It was always such a painful side to the the bottom line guys. But without Dave D, and Brad, and a few others promoting this with content, this may have not made it to receivers. That was survival to the bottom line. They had the purple box and a few of us who knew this would work, just no one knew how. Took a while to get the manufacturers (Denon led the way) to agree to the idea of an open architecture for multichannel. Stereo ruled.The company had no way to really make $, and after a while the guys supplying all the cash were getting dancing feet. Never knew which way they would face. But that side seemed to survive way beyond i thought possible. We did the first CDs in 95-96. Putting out software is an uneeded distraction by now i bet. But the parties at CES were a gas!:spot

 

[JonUrban]

The thing that sucks is although the labels could claim that DVD-A and SACD failed because no one wanted to buy the players (or that they needed new equipment to play these formats properly), the simple DTS CD was totally playable on a huge amount of systems out there.

There was no logical reason to stop licensing titles and releasing DTS CDs. I was told that they were even making money on them (if not a lot).

 

[ClarkNovak]

We really need a boutique label dedicated to just producing DTS CDs for our small but loyal following. They don't have to be cheap - I'd pay $25-$30 for 5.1 DTS titles. Surely they could make money at that price point. Maybe it's even an on-demand operation, like itsaboutmusic.com . C'mon... anyone? Anyone? ... Beuller?