Complex sentence: Standard DV audio is 12-bit (4,096 distinct levels), NICAM pseudo- 14-bit (10-bit data + 4-bit gain signal, with 14-bit output DAC).
Split into simpler sentences: Standard DV audio is 12-bit (4,096 distinct levels). NICAM is pseudo- 14-bit (10-bit data + 4-bit gain signal, with 14-bit output DAC).