DAC with optical output

I am currently using the Tranquility USB only DAC.I want to get an Apple TV which won't accommodate the DAC. Would appreciate recommendations for a quality DAC with optical connections for under $1000 new. It needs to be quite small as I have no room for anything big. Thanks in advance for your input.
before you switch DACS, if you like your DAC, is there a (good quality) connector/adaptor to go from apple tv optical out to tranquility usb?
I dont know of any worthy adaptor, there's a possibility to "hack" the apple tv usb port. But im not sure about going that route.
A nice dac under 1k i recommend with optical toslink is the Burson DA-160.