The USB output from the PC has noise. When the signal is input over USB into the DAC, it bypasses the receiver chip and is sent directly to the CM-108 device. The digital stream is stripped as the device separates the clock and data signals. It then re-clocks the digital stream which basically means it has reduced any jitter and/or noise to extremely low levels.The re-clocked stream is then directed to the main AKM processor chip where it is upconverted to 32 bit / 192kHz and then outputted to the analog jacks on the rear panel of the DAC.