SRSL Srs Labs, Inc. (MM)

CUSIP NO. 78464M106
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1 NAME OF REPORTING PERSON
 PENN CAPITAL MANAGEMENT

 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY).
 22-2796848
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
 (a) |_|
 (b) |_|
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3 SEC USE ONLY


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4 CITIZENSHIP OR PLACE OF ORGANIZATION

 DELAWARE
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 5 SOLE VOTING POWER

 857,546 SHARES
 -----------------------------------------------------------------
 NUMBER OF 6 SHARED VOTING POWER
 SHARES
BENEFICIALLY
 OWNED BY -----------------------------------------------------------------
 EACH 7 SOLE DISPOSITIVE POWER
 REPORTING
 PERSON 857,546 SHARES
 WITH -----------------------------------------------------------------
 8 SHARED DISPOSITIVE POWER


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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 857,546 SHARES
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
 (SEE INSTRUCTIONS) |_|
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 5.88%
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12 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 IA
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ITEM 1.

(A) NAME OF ISSUER

 SRS Labs Inc.

(B) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICE

 2909 Daimier St.
 Santa Ana, CA 92705


ITEM 2.

(A) NAME OF PERSONS FILING

 PENN CAPITAL MANAGEMENT

(B) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR IF NONE, RESIDENCE

 NAVY YARD CORPORATE CENTER
 THREE CRESCENT DRIVE, SUITE 400
 PHILADELPHIA, PA 19112

(C) CITIZENSHIP

 DELAWARE

(D) TITLE OF CLASS OF SECURITIES

 COMMON STOCK

(E) CUSIP NUMBER

 78464M106


ITEM 3.

 IF THIS STATEMENT IS FILED PURSUANT TO RULE 240.13D- 1(B), OR 240.13D-2(B)
OR (C), CHECK WHETHER THE PERSON FILING IS A:

 (A) ___ BROKER OR DEALER REGISTERED UNDER SECTION 15 OF THE ACT (15 U.S.C.
 78O).

 (B) ___ BANK AS DEFINED IN SECTION 3(A)(6) OF THE ACT (15 U.S.C. 78C).

 (C) ___ INSURANCE COMPANY AS DEFINED IN SECTION 3(A)(19) OF THE ACT (15
 U.S.C. 78C).

 (D) ___ INVESTMENT COMPANY REGISTERED UNDER SECTION 8 OF THE INVESTMENT
 COMPANY ACT OF 1940 (15 U.S.C. 80A-8).

 (E) _X_ AN INVESTMENT ADVISER IN ACCORDANCE WITH 240.13D- 1(B)(1)(II)(E).

 (F) ___ AN EMPLOYEE BENEFIT PLAN OR ENDOWMENT FUND IN ACCORDANCE WITH
 240.13D-1(B)(1)(II)(F).

 (G) ___ A PARENT HOLDING COMPANY OR CONTROL PERSON IN ACCORDANCE WITH
 240.13D-1(B)(1)(II)(G)

 (H) ___ A SAVINGS ASSOCIATION AS DEFINED IN SECTION 3(B) OF THE FEDERAL
 DEPOSIT INSURANCE ACT (12 U.S.C. 1813).

 (I) ___ A CHURCH PLAN THAT IS EXCLUDED FROM THE DEFINITION OF AN
 INVESTMENT COMPANY UNDER SECTION 3(C)(14) OF THE INVESTMENT COMPANY
 ACT OF 1940 (15 U.S.C. 80A-3).

 (J) ___ GROUP, IN ACCORDANCE WITH SECTION 240.13D-1(B)(1)(II)(J).


ITEM 4. OWNERSHIP.

 PROVIDE THE FOLLOWING INFORMATION REGARDING THE AGGREGATE NUMBER AND
PERCENTAGE OF THE CLASS OF SECURITIES OF THE ISSUER IDENTIFIED IN ITEM 1.

 (A) AMOUNT BENEFICIALLY OWNED: 857,546 SHARES

 (B) PERCENT OF CLASS: 5.88%

 (C) NUMBER OF SHARES AS TO WHICH THE PERSON HAS:

 (I) SOLE POWER TO VOTE OR TO DIRECT THE VOTE: 857,546 SHARES

 (II) SHARED POWER TO VOTE OR TO DIRECT THE VOTE:

 (III) SOLE POWER TO DISPOSE OR TO DIRECT THE DISPOSITION OF: 857,546 SHARES

 (IV) SHARED POWER TO DISPOSE OR TO DIRECT THE DISPOSITION OF:

ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS

IF THIS STATEMENT IS BEING FILED TO REPORT THE FACT THAT AS OF THE DATE HEREOF
THE REPORTING PERSON HAS CEASED TO BE THE BENEFICIAL OWNER OF MORE THAN FIVE
PERCENT OF THE CLASS OF SECURITIES, CHECK THE FOLLOWING /___/.

ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON

 NOT APPLICABLE

ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
 SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY

 NOT APPLICABLE

ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP

 NOT APPLICABLE

ITEM 9. NOTICE OF DISSOLUTION OF GROUP

 NOT APPLICABLE

ITEM 10. CERTIFICATION.

BY SIGNING BELOW I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF, THE
SECURITIES REFERRED TO ABOVE WERE NOT ACQUIRED AND ARE NOT HELD FOR THE PURPOSE
OF OR WITH THE EFFECT OF CHANGING OR INFLUENCING THE CONTROL OF THE ISSUER OF
THE SECURITIES AND WERE NOT ACQUIRED AND ARE NOT HELD IN CONNECTION WITH OR AS A
PARTICIPANT IN ANY TRANSACTION HAVING THAT PURPOSE OR EFFECT.

AFTER REASONABLE INQUIRY AND TO THE BEST OF MY KNOWLEDGE AND BELIEF,
I CERTIFY THAT THE INFORMATION SET FORTH IN THIS STATEMENT IS TRUE,
COMPLETE AND CORRECT.

DATED: February 13, 2012


BY: /S/ JOHN G. LIVEWELL
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NAME: JOHN G. LIVEWELL
BY: CHIEF COMPLIANCE OFFICER