For sometime there, everyone was screaming that the Home Theater was going to change everything. Well, now that just about everyone has one in some capacity, the ‘noise’ seems to be toned down a bit. Most specifically, what happened with all of the hype about DTS? Lately I have just not been hearing that much about it!

Investors have responded to digital audio technology specialist Digital Theater Systems (Nasdaq: DTSI) with a fair bit of static since its early 2004 highs.

The company’s earnings and guidance, reported on Thursday, aren’t likely to help much in the short term. Total sales were up about 12% from the previous fourth quarter, and net income (excluding an inventory write-off) was down from the prior year.

Although the company was able to show double-digit growth in the consumer sector, the cinema business grew only by mid-single digits as hardware sales were soft. Margins were also weak because of a combination of lower gross margins and higher selling, general, and administrative expenses, caused in part by legal fees and financial compliance with the Sarbanes-Oxley Act.

All that said, the company still ended the quarter with $117 million in cash and securities — almost $6.50-per-share’s worth.