Kirchner A string of recent partnerships at high definition audio company DTS reflect a growth trend in the company fueled by a shift to high definition video and audio, and a growing demand for network connectivity in consumer electronics. Over the past 18 months the company has seen the first TVs, smart phones, digital media players and IPTV set top boxes incorporate its technology, and the company is gaining momentum in these fields. DTS technology is already in home theaters, car audio systems, game consoles, DVD players, surround music software and every device capable of playing Blu-ray discs. The company is now also further delving into the world of personal computers and the accessory market. The Calabasas-based company on Jan. 5 announced a partnership with French telecommunications company Free, to integrate DTS surround sound technologies into Free’s forthcoming Digital Media Player products; and also announced deals with PC maker Lenovo and TV maker LG, among others. “DTS continues to build momentum in the network-connected TV market because of growing consumer demand for downloaded high definition movie content,” said CEO Jon Kirchner who explained that the Free partnership follows a deal with France Telecom/ Orange last September, which marked the company’s incursion into the broadcast market. The France Telecom/Orange and Free partnerships, he said, involve the integration of DTS technology for use in set top boxes which can be connected to a wide range of television sets. The deal complements the company’s efforts in the TV space. DTS first incorporated its technology into TVs last February through a partnership with TV maker Samsung. The company has since signed up the number two TV maker, LG, and has expanded its “smart TV” relationships with the top five Chinese TV manufacturers. Kirchner said the company’s technology enables consumers to enjoy high definition audio play back with their HD video and is also aiming to address the growing sound presentation challenges created by thinner flat panel displays. A recently launched technology called DTS Premium TV, normalizes volume levels and widens the sound field coming from the TV, he said. DTS Premium TV was launched with Chinese manufacturer Skyworth in December. Smart phones DTS is also making headway in the smart phone market. Last spring the company made its first move in this space by partnering with Korean phone manufacturer Pantech. Over the past eight months, Pantech has released three Android-based phones with DTS technology to support the growing interest in high definition content on smart phones. “Last week [Jan. 7] we announced two very important deals that demonstrate that we are building momentum in the smart phone area,” said Kirchner. The company announced that LG will begin using DTS decoding technology in their smart phones; and that Huawei, a large Chinese manufacturer, will begin using the company’s post processing technology in their phones to improve the sound performance (loudness) of the phone speaker design and to add a surround experience via headphones. The integration of DTS technology in LG products is the latest milestone in the growth of DTS, a company that for the third quarter of 2010, saw revenue increase by 40 percent over the prior year to $21 million. Income from continuing operations increased 74 percent to $3.4 million, or $0.19 per diluted share, during that quarter. The growth of the company, which had 2010 projected revenues between $82 to $85 million, has been largely spurred by the fact that DTS became a mandatory audio format in the Blu-ray Disc standard and is now increasingly deployed in enabling digital delivery of movies. New markets The Blu-ray standard has helped open up new markets for the company, said Kirchner, one of them being the PC market. On Jan.3 DTS announced it had entered into an agreement with Lenovo, one of the world’s largest makers of personal computers, to integrate DTS technology into Lenovo’s new digital home products. These products are scheduled to launch in China in 2011. “Lenovo is the first PC manufacturer to fully embrace DTS technology as they look to deliver a more compelling experience,” he said. DTS is also looking to strongly position itself in the accessory market partnering with major international brands. Most recently DTS announced a partnership with Edifier, a major brand in China’s multimedia and home speaker industry. Edifier will incorporate DTS technology into its new multi media speaker system which will be available in China and other overseas markets beginning in spring 2011. Founded in 1993, DTS has its corporate headquarters in Calabasas with its licensing operations headquartered in Limerick, Ireland. DTS also has offices in Northern California, Washington, Canada, China, France, Hong Kong, Japan, South Korea, Taiwan and the United Kingdom.