Jackson America

Sounding the Alarm on DTS Inc.

thanks for the comments. my understanding is that Blue Ray working group has a patent pool of which DTS has contributed IP. DTS gets ~ .30 per unit across platforms and that is SIMILAR to their standard def royalty rate. What bulls miss is that DTS has ~ 92% penetration rate in SD, so will the incremental 8% TAM make a significant difference? What if the HD cycle is weaker than the SD cycle? I'm going to write a follow up tonight that hopefully will be out tomorrow.