Have Lexicon MC12B- Do I need outboard DAC?

The Lex is a beauty, IMO. If you buy a high-end CD /SACD player, you'll probably want to use it's analog outs (ie, use it's DACs), but I think you'll be very satisfied with a good transport and a digital connection to the Lexicon for music. And, of course, if you go SACD with >2 channels, you'll have to use the SACD player's DACs.

I'm sure you could find a high-end DAC that sounds better (or different) than the Lexicon, but I wouldn't want to add the cost or complexity personally.

I own an MC-12B and as much as i like to try to tweak my equipment, this is one piece that will satisfy your every need. I am also running the LX-7 amp with it and i am very pleased with the sound quality and operation of them both, i will say, no need to spend the extra cash for any extra
gear as far as sound quality.