Audio tech co SRS Labs seen profitable - Barron's
NEW YORK, Nov 1 (Reuters) - SRS Labs (SRSL.O) is reaping the benefit of licenses it signed several years ago as newer TVs, mobile phones and computers begin featuring its audio technology, Barron's business weekly said on Sunday.
It noted the Santa Ana, California-based company's customers include Samsung, Hewlett-Packard (HPQ.N), Dell (DELL.O) and Best Buy (BBY.N).
"SRS is on the verge of sustained profitability," Barron's quoted Jim Kennedy, president of Marathon Capital Management, as saying.
Kennedy said fees vary with exclusivity of its products, but "since this is chip-level technology, the margins can be impressive as the unit count goes up."
Barron's said SRS shares, at about $6.50, are 72 times 2009 profits, but 22 times projected 2010 profits.
(Reporting by Steve James, editing by Martin Golan)
