Agoura Hills, Calif. — Surround sound technologies developer DTS said it has received the approval of its board of directors to sell its professional cinema and digital images business in order to focus exclusively on electronic components, including licensing branded entertainment technology to the large and evolving audio, game console, PC, portable and broadcast markets.
The cinema and digital images business, which is now known as “DTS Digital Cinema,” will be located in Burbank, Calif., where it will “focus on the potentially large and emerging market for digital cinema products and services,” the company said.
DTS stated that it expects the sales process to be completed “later in 2007.”
At the same time, the company released its fourth-quarter and fiscal year financial results for the period that ended Dec. 31, 2006.
The company reported a $5 million net loss on revenues of $12.7 million for the fourth quarter, resulting primarily from restructuring costs and stock based compensation expenses. That is a drop from the net profit of $1.4 million on revenues of $13 million for the fourth quarter of 2005.
The quarter included $1 million in stock-based compensation expenses, and $3.8 million in restructuring costs.
For the full year, the company reported that net income dropped 61 percent to $3 million on revenues of $59 million, from $7.9 million on revenues of $57 million for the 2005 fiscal year.
The company said full-year results were affected by $3.6 million in stock-based compensation expenses, $3 million in restructuring costs to buy out a commission agreement for licensing intellectual property in the China market, and $1.1 million in non-deductible costs related to the separation of the DTS Digital Cinema business.