That's correct. The 103 will only output pure SACD (DSD) digital signals over an HDMI cable. Only certain HT processors and receivers will be able to receive and decode DSD over HDMI.
If you want to play SACD and have your PS Audio DAC play them, you will have to configure the Oppo to convert the SACD data to regular PCM data before playing on the coaxial digital output.
Setup Menu => Audio Format Setup => Coaxial/Optical Output => set to "192k LPCM"
Setup Menu => Audio Format Setup => SACD Output => set to "PCM"
Give this a shot and let us know if it works.