DTS Sells Digital Cinema Business for $3.3 million

DTS announced financial results for the first quarter ended March 31, 2008. In addition, the Company announced that it has sold its Digital Cinema business to Beaufort California, Inc., a member of Beaufort International Group Plc. in England.

In the first quarter of 2008, DTS reported revenue from continuing operations of $15.2 million, an increase of 21% over the first quarter of 2007. The sale of the Digital Cinema business closed on May 9 for approximately $3.3 million in cash and the assumption of certain liabilities. Under the terms of this transaction, in certain circumstances DTS could receive up to $11.7 million in additional consideration over the next few years. In addition, as previously reported, the Company sold its Digital Images business on April 4 for $7.5 million in cash.

“We have now completed the sale of both the Digital Images and Digital Cinema businesses which allows us to focus entirely on building a high growth and highly profitable consumer business. We truly appreciate the dedication of the management teams and employees who continued to build these businesses throughout the sales process,” commented Jon Kirchner, president and CEO of DTS, Inc.

Beaufort International Group Plc is majority-owned by Datasat Communications Ltd., a UK-based satellite services provider. Datasat’s Managing Director Phil Emmel stated, “We decided to invest in the DTS Digital Cinema business because the company is one of the few golden brands that is established within the production and distribution and exhibition marketplaces. It is our vision that we can build a significant presence as a provider of products and services to the digital cinema industry. We want to work with all of the stakeholders to make their lives easier in the transition to D-Cinema and also to provide unparalleled levels of service to everyone working with media content. It is a natural extension of our existing managed service business in which we routinely deliver data and media content over secure networks.”

Source: DTS