DTS Reports Solid Second Quarter Financial Results

Company Posts Continued Revenue And Earnings Growth

13-Aug-03

Digital Theater Systems, Inc. (DTS) (NASDAQ: DTSI) announced financial results for the three and six months ended June 30, 2003. For the second quarter of 2003, DTSÆ reported total revenues of $11.7 million, an increase of 40 percent over $8.4 million in the second quarter of 2002. Gross margins for the second quarter were strong at 76 percent compared to 69 percent in the prior year quarter. Net income attributable to common stockholders was $1.4 million, or $0.13 per diluted share, in the second quarter of 2003, compared to a net loss attributable to common stockholders of $124,000, or ($0.03) per basic and diluted share, in the second quarter of 2002.For the six-month period ended June 30, 2003, DTS reported total revenues of $23.5 million, representing an increase of 32 percent over $17.8 million in the same period of 2002. Gross margins for the first six months of 2003 were 78 percent compared to 71 percent in the prior year period. Net income attributable to common stockholders was $2.9 million for the six-month period ended June 30, 2003, or $0.27 per diluted share, compared to $885,000, or $0.10 per diluted share, in the same period of 2002.""Following our initial public offering in which we raised net proceeds of $63.2 million, DTS is pleased to report such solid results in our first quarterly earnings announcement,"" commented Jon Kirchner, President and CEO of DTS. ""We saw progress across all areas of our business in the quarter, particularly in our new product and emerging markets. We are pleased with our overall financial progress, considering this has historically been our slowest quarter. ""Within our Consumer business, we continued to experience solid growth across several segments. In addition, our broadcast trial with Swedish Radio has continued to generate positive interest from consumers. In our DTS Entertainment business, we released several important titles and laid the groundwork for broader distribution partnerships, both in the U.S. and abroad. ""Our Theatrical Division continued to license its technology to leading studios for incorporation of DTS soundtracks into major U.S. films. During the quarter, we also began shipping our XD-10 Cinema Media player to our exhibition customers. We expect the XD-10 Cinema Media player, together with our recently introduced DTS-CSS system which offers compelling benefits for both foreign subtitling and domestic captioning, to be significant drivers of growth in the future."" For more information about Digital Theater Systems, Inc., visit visit www.dtsonline.com.

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