The color of money.

Four months after taking Digital Theater Systems' spectacular public debut, its earliest investors are looking to reap a windfall.

The Agoura Hills-based maker of sound systems, which counted director Steven Spielberg as one of its earliest investors, made a splash on Wall Street in July when its shares reached a high of $23.90 during its first day of trading on Nasdaq. Since then, Digital Theater shares have climbed to $25.63, a 50 percent premium over its initial offering price of $17 a share.

In a secondary offering that was announced last week, early investors will sell 3 million shares along with 1.5 million newly issued ones.

Among the sellers are General Electric Co.'s Universal City Studios, which will trim its stake to about 7 percent from 11.7, and money manager Westin Presidio Partners, DTS' largest shareholder, which will reduce its holdings to just over 13 percent from 22.3 percent by selling nearly 1 million shares.

Spielberg, whose DreamWorks SKG uses DTS equipment, will be joining the sellers. He's an investor in Forth Investors LLC, which will reduce its holdings to 6.6 percent after the offering from 11.7 percent.

DTS

Nov. 20, 2003    $25.63
July 14, 2003    $23.32

Note: Table made from line graph.