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Topic: DTS going public

Adam Martin
I'm not even gonna point out the irony.

Posts: 3686
From: Dallas, TX
Registered: Nov 2000

posted 07-05-2003 12:49 PM

Clint mentioned this in the DTS website thread, but it went unnoticed, so I'll bring it up again.

It appears that on July 9, DTS will issue an IPO:

quote:

UPDATE - DTS sets IPO at 3.4 mln shares, $14-$16 each

Thursday June 5, 5:20 pm ET
By John Poirier

WASHINGTON, June 5 (Reuters) - Digital Theater Systems Inc. on Thursday said it plans to offer 3.4 million common shares in an initial public offering at an estimated range of $14 to $16 each.

The Agoura Hills, California-based company, which provides digital surround sound audio technology, disclosed the size and price of the planned IPO in an amended prospectus filed with the Securities and Exchange Commission.

Under the proposed terms, DTS could raise as much as $54 million in proceeds and have an initial market capitalization of about $200 million based on the high end of the price range and 12.6 million shares of outstanding stock after the IPO.

The underwriters, led by SG Cowan, will have the option to buy 510,000 more shares in the event of heavy demand.

The company has applied to list its shares on Nasdaq under the symbol "DTSI".

Founded in 1990, DTS provides high-quality digital multichannel audio technology, such as surround sound, as well as products and services for entertainment markets.

It provides its audio technology products to film studios, productions companies and movie theaters, including 20th Century Fox, Buena Vista Pictures, Warner Bros Pictures, and other international distributors.

The company filed a preliminary prospectus with the SEC April 25 at a time when companies have postponed or withdrawn an IPO due to the unfavorable market conditions.

DTS said it plans to use $21.3 million of the proceeds from the IPO to redeem all outstanding shares or its redeemable preferred stock and to pay unpaid dividends on such shares.

It plans to use the rest for general corporate purposes, including working capital, research and development, expansion, and sales and marketing.

After the IPO, Universal City Studios Inc. which invested in DTS in 1993, will hold a 13.3 percent stake, according to the amended prospectus.

Since 1996 its audio technology, the company said, has been licensed to consumer electronics products makers for their audio/video receivers, DVD players and home theater systems.

Its top competitor is Dolby Laboratories Inc., it said.

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Phil Hill
I love my cootie bug

Posts: 7595
From: Hollywood, CA USA
Registered: Mar 2000

posted 07-05-2003 02:24 PM

The employees with lots of stock options are going to be VERY well-off soon...at least on paper. [beer]

Just hope the stock holds it value for the duration of the employee option lock-out period. Usually 6 months, if you're not an employee that has "inside" information of the company's plans/new products, etc. like the CEO, CFO, or the VP of Engineering. [Frown]

As soon as you can, SELL! SELL! SELL! [beer]

I know of one employee of a "not-to-be-named" company that hung onto his $35/share IPO stock that was worth $11/share at the end of the lock-up and then dropped to less than $3/share within a year. Thankfully, he sold most of it at the end of the lock-up. [beer]

DTS will hang in there, they are a great company with lots of great people...and usually good ideas. [Big Grin]

(I can't forgive them for hanging all us 6D users out to fend for ourselves!) [Mad]

>>> Phil

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Pravin Ratnam
Jedi Master Film Handler

Posts: 844
From: Atlanta, GA,USA
Registered: Sep 2002

posted 07-05-2003 09:17 PM

I hope DTS is increasingly used to stock different language soundtracks to make sure those of us who are opposed to dubbing can have at least one show a day set aside for us.

Maybe they can have a subtitle overlap to be used whenever the dubbed version is not used instead of having the subtitles printed on film.

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Jonathan M. Crist
Jedi Master Film Handler

Posts: 531
From: Hershey, PA, USA
Registered: Apr 2000

posted 07-05-2003 11:01 PM

Well that goes along way to explaining the marketing push for the new Whiz-Bang gadget!

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Daryl C. W. O'Shea
Film God

Posts: 3977
From: Midland Ontario Canada (where Panavision & IMAX lenses come from)
Registered: Jun 2002

posted 07-06-2003 12:11 AM

quote:
I can't forgive them for hanging all us 6D users out to fend for ourselves!

Support for the DTS-6D is not being discontinued. Just support for the DTS-6 (two-drive) units. And it's not really 'support' that is being discontinued... just parts. Karen has promised not to hang up on you when you call about your DTS-6. [Smile]

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Phil Hill
I love my cootie bug

Posts: 7595
From: Hollywood, CA USA
Registered: Mar 2000

posted 07-06-2003 05:36 AM

Thanks Daryl for that info....I was misinformed.

However, since no one or no company is perfect, I will still leave the "usually good ideas" in my original post... just for general principles.

You remember him... he served in the military along with General F*ckup and Major Disaster.

>>> Phil

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David Stambaugh
Film God

Posts: 4021
From: Eugene, Oregon
Registered: Jan 2002

posted 07-10-2003 01:14 PM

Looks like the DTS IPO was well-received:

DTS Goes Public

Digital Theater Systems IPO gains
Surround sound tech firm kicks off at higher price

By Steve Gelsi, CBS.MarketWatch.com
Last Update: 2:06 PM ET July 10, 2003

NEW YORK (CBS.MW) -- Surround sound specialist Digital Theater Systems debuted with a boom on Wall Street Thursday as the initial public offering generated the biggest opening day pop of the year.

In a bullish sign for the market for initial public offerings, Digital Theater Systems (DTSI: news, chart, profile) opened at $19.50, well above its $17 price.

Shares traded up to $23.25 on volume of 2.6 million in afternoon action on the Nasdaq. That's a gain of 37 percent above its offering price, the biggest first day jump among all IPOs for 2003, according to Thomson Financial.

If the price holds, the IPO could be the best opening day gainer since chip equipment firm Nassda (NSDA: news, chart, profile) debuted in December 2001, at $11 per share. Nassda is now trading at $8.35.

Signs of strong investor interest in Digital Theater Systems came as it priced its IPO at $17 per share, above its $14 to $16 price range.

The profitable maker of theater sound systems for the home and cinema also upped the size of the deal by 440,000 shares to 3.84 million.

Digital Theater Systems is raising about $65 million in the deal with lead underwriter S.G. Cowen.

With 12.6 million shares outstanding, it carried a market cap of $214 million based on its offering price.

Although IPOs have been showing traction of late, deals continue to evaporate.

Sneaker maker Converse is scrapping its $86 million initial public offering in favor of a $305 million buyout deal from Nike. See full story.

Digital Theater Systems IPO

The Agoura Hills, Calif., firm bills itself as a leading provider of digital multi-channel "surround sound" audio technology and services for entertainment markets worldwide.

Its "DTS" logo is often visible on audio products, movie credits and cinema posters.

"Our DTS digital multi-channel audio technology delivers compelling surround sound and is frequently rated as the top performing surround sound technology by authoritative sources such as Widescreen Review and AudioRevolution.com," the company said in its IPO filing.

"Our goal is to become essential to the ultimate entertainment experience by incorporating our technology into every device that manages or controls high-quality digital audio," the company said.

Digital Theater Systems rang up $1.6 million in net income and $11.8 million in revenue in the first quarter, compared to net income of $1 million and revenue of $9.4 million in the year-ago period.

In calendar year 2002, it notched net income of $4.4 million and revenue of $40 million, compared with $2.1 million in net income and $28.6 million in revenue in 2001.

Digital Theater Systems traces its origins to 1990, with strategic investment in 1993 from investors, including Universal City Studios, now a unit of Vivendi Universal (V: news, chart, profile).

Its first digital multi-channel audio soundtrack was created for Steven Spielberg's "Jurassic Park" in 1993.

Other investors include Scripps (SSP: news, chart, profile), Weston Presidio Capital and EOS Partners.

Jon Kirchner, 35, is chief executive officer of the company. He joined Digital Theater Systems after working at Price Waterhouse LLP.

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