Hi Bob,
The X03/SE converts DSD to PCM. The DAC chips used are PCM1704 dac chips, which are PCM only DAC chips. However, the P03/D03 combo (for example) use the Analog Devices AD1955 DAC chips and circuitry which enable direct native DSD decoding.
The X03/SE converts DSD to PCM. The DAC chips used are PCM1704 dac chips, which are PCM only DAC chips. However, the P03/D03 combo (for example) use the Analog Devices AD1955 DAC chips and circuitry which enable direct native DSD decoding.