Digital Theater Plans Offering

Digital Theater Systems Inc., which provides digital surround sound audio technology, is planning an initial public offering of as much as $60 million in common stock.

The Agoura Hills company filed a preliminary prospectus Friday with the Securities and Exchange Commission, but did not say how many shares it plans to offer or estimate a price per share.

Founded in 1990, DTS provides digital multichannel audio technology such as surround sound, as well as products and services for entertainment markets.

The company received an investment in 1993 from Universal City Studios Inc., which holds a 17.9% stake, and created the first DTS soundtrack for director Steven Spielberg’s film, “Jurassic Park.”

DTS provides its audio technology products to movie theaters, production companies and film studios, including 20th Century Fox, Buena Vista Pictures, Warner Bros. Pictures and other international distributors.

DTS’ profit doubled in 2002 to $4.4 million, from $2.1 million the previous year. Revenue surged 43% to $41 million.

SG Cowen, William Blair & Co. and Thomas Weisel Partners were listed as underwriters.

DTS said it plans to use $21.3 million of the IPO proceeds to redeem all outstanding shares or its redeemable preferred stock and to pay unpaid dividends on such shares.

It plans to use the rest for general corporate purposes, including working capital, research and development, expansion, and sales and marketing.

The company has applied to list its shares on Nasdaq under the symbol DTSI.