DTS DEBUTS IPO AS STAR SOUND FIRM MAKES BEST DEBUT OF YEAR.Byline: Evan Pondel Staff Writer AGOURA HILLS - Investors are listening to Digital Theater Systems Inc. Shares of the digital-surround-sound company skyrocketed almost 47 percent to $24.92 in its first day of trading on the Nasdaq market last week - the biggest debut for an initial public offering this year. Analysts say investors are hungry for something profitable that can endure turbulence and has a proven track record. ``It's all about stability and strength,'' said Frank McGee There are different people named Frank McGee:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Those characteristics ``and the fact that the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market is picking up as broader markets have stabilized certainly helps companies going public right now.'' DTS' stability stems from two consecutive years of profits, with the Agoura Hills company posting unaudited net income of $2.03 million for the three months ended March 31. While those numbers are by no means eye-popping, McGee said it's impressive enough when there have only been 13 IPOs this year raising $3 billion, compared with 57 deals generating $18.7 billion for the same time period last year. The most recent company to surpass DTS' performance was Aeropostale when the casual clothier gained 54 percent after its first day of trading in May 2002, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Dealogic. There are several factors benefiting DTS (1) (Digital Theatre Sound) A digital audio encoding system used in movie and home theaters. Popularized by the movie Jurassic Park, the six-channel (5. . Founded in 1990, the company received a key strategic investment three years later from Universal City Studios Inc. They also have names like Steven Spielberg in their prospectus as one of the company's more notable clients. DTS' first multichannel Using two or more paths for transmission or processing. It can refer to a variety of architectures including (1) multiple I/O channels between the CPU and peripheral devices, (2) multiple wires in a cable, (3) multiple "logical" channels within a single wire or fiber or (4) multiple audio sound track - the technology used to separate sounds in movie theaters - was created for Spielberg's ``Jurassic Park.'' For decades, stereo was among the most sought-after technologies that enabled audiences to hear a more accurate representation of sound. But by the mid-1990s, DTS developed what is now among the industry standards in theater sound. Known as ``5.1,'' the figure represents the basic formula for quality sound: five speakers and a subwoofer A speaker that reproduces the lower end of the audio spectrum. A subwoofer system may include a crossover circuit which switches frequencies at approximately 100Hz and under to the subwoofer, while passing the rest of the signal to the main speakers. . The formula has been applied to home theaters - a focal point focal point n. See focus. for DTS in the last several years. ``And we've seen very good market progress for this area in the development of the DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. ,'' Jon Kirchner, president and chief executive officer, said in a phone interview Monday. ``If you look at our product like the DVD, it is doing very well all over the world.'' Home entertainment systems now come equipped with DTS' technology - enabling DVD players and other components to displace sound through five speakers. There are more than 100 million DTS-license consumer electronics products worldwide, the company said. DTS' chief competitor is Dolby Laboratories. The company's more recent deals include the broadcast of HBO Hyperbaric oxygen therapy (HBO) A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy Films productions including ``Six Feet Under,'' ``The Sopranos'' and ``The Wire.'' In DTS' prospectus, the company listed several potential advantages that its competitors may have given the interest in the sector. Greater name recognition of companies like Dolby and longer operating history topped the list. Incidentally, Dolby introduced multichannel audio technology before DTS. Kirchner said DTS' more powerful selling point is the company's global perspective. ``So the minor shocks we may experience are buffeted by the fact that we do business all over other world,'' he said. The company's technology is also utilized to produce CDs and DVDs. DTS has released titles by artists such as Diana Krall, Herb Alpert, Vince Gill and Sting. Looking ahead, Kirchner said he expects DTS' sound to continue to evolve. ``Everything has followed along with our vision and I will stop well short of saying it has been easy.'' he said. ``But there can always be improvement and momentous changes.'' DTS shares declined 98 cents to close at $23.32 Monday. Evan Pondel, (818) 713-3662 evan.pondel(at)dailynews.com CAPTION(S): photo Photo: (color) Digital Theater Systems's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jon Kirchner says the firm is strong globally. Its shares skyrocketed almost 47 percent on its first day of Nasdaq trading. Andy Holzman/Staff Photographer |
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