DTS (formerly Digital Theater Systems) surrounds movie lovers with sound. The company's multi-channel audio systems are used in consumer electronic devices such as audio/video receivers, DVD and Blu-ray HD players, PCs, car audio products, video game consoles, and home theater systems. DTS has licensing agreements with major consumer electronics manufacturers (Sony, Samsung, and Philips). It also provides DTS-encoded soundtracks in movies, TV shows, and music content. The firm was founded in 1990 as Digital Theater Systems by scientist Terry Beard. It received initial funding from Universal Pictures in 1993, and used that relationship to debut its audio system in the soundtrack to Universal's Jurassic Park.
While DTS is headquartered in the US, it has a plethora of international offices, including locations in the UK, Ireland, Japan, South Korea, and China. Nearly 85% of DTS's revenues were derived internationally in fiscal 2014. Specifically, Japan is a significant source of revenues, accounting for 40% of the company's business.
Sales and Marketing
The company spent $4.4 million on advertising and promotional costs.
DTS reported revenue of $143.9 million for fiscal 2014. That was an increase of 15% compared to the prior fiscal period. The company claimed a net income of $27.1 million in fiscal 2014, which was an increase 72% increase compared to fiscal 2013.
DTS ended fiscal 2014 with $41 million in cash on hand from operations. That was a 92% increase compared to the company's fiscal 2013 levels of cash on hand.
DTS' key strategy in the broadcast market is to actively work with broadcasters, operators, international standards organizations, and manufacturers to expand the penetration of its solutions and capitalize on the increasing demand for high-definition audio delivery.
Mergers and Acquisitions
In 2015 DTS agreed to acquire iBiquity Digital Corporation, the developer of digital HD Radio technology for AM/FM audio and data broadcasting for approximately $172 million. iBiquity is the exclusive developer and licensor of HD Radio technology. The deal extends DTS' strategy of delivering a personalized, immersive, and compelling experience across the network-connected entertainment value chain.