Cambridge Audio CD Player Has Died

Your player has both optical and digital outputs so you would connect one of those outputs with the appropriate cable to the input of a DAC and it would bypass the internal DAC in the player. But, since the output of the player is intermittent there's a good chance the issue isn't the DAC since it has no moving parts and the transport does. No way to know without testing, either by buying or borrowing a DAC or taking it to a repair shop. If you do want to test it yourself there are decent, relatively inexpensive DACs like the Topping MX3. For testing purposes you could use a single RCA to RCA cable for the coax connection rather than buy a purpose-built digital cable.

Or, you could be satisfied you've had many years of excellent service for your player and find a replacement. That would be my recommendation. Even if your transport isn't the problem now it will be some time in the future. It's a mechanical device that spins at very high rpm and will fail eventually, just like the tires on our car.

Thank you, sfar, for the clear explanation. Yes, indeed my player has served me well. And your recommendation to simply replace it makes sense. The question that I am asking myself is: whether to buy a new (or reconditioned) player or a DAC/transport? If I opt for the DAC/transport, I could buy the DAC first & see whether it resolves the problem with my player. If not, then I could get a new transport.

My personal view on this is to buy a nice cd player that has the necessary outs to use as a transport. Then, should the dac fail, or if you want to upgrade the dac you can play cds while you shop around

I said this before the Marantz HD CD 1 is a really good transport MSRP $500

Most times it’s the laser and transport mechanism that gives out first.Your player can’t output a signal if the laser can’t track the disc.It’s hard to decide which way to go,I can relate.You’ve been happy with your current player,so just replace it with the new or refurbished(same warranty?).If you want to add a dac down the road the new player becomes the transport.
That’s the way I wanted to go but the player I had is no longer manufactured.I was happy with the equipment I had and not really excited about a change.Shhh....I may lose my audiophile card now:-)

You're right, that's the obvious question and there's no right answer.
As with almost every question that's asked on these forums the first words of the answer should always be, "It depends."

Advantages of the one-box solution -- Simplicity, takes up less space and requires at least one fewer cable. In theory, the manufacturer has taken some care to match the two components and the total manufacturing cost is less than for two boxes. Disadvantages -- You already know the major one, if one of the components fails you're out of music. In addition, transports aren't being improved since the need for that technology is disappearing, while DACs are improving at a rapid rate, for now. It's often very difficult to find a replacement transport mechanism for a device only a few years old.

Advantages of the two-box solution -- Flexibility, being able to use the DAC for multiple sources like streaming, TV audio, etc. If one component fails you have to replace only it. Take advantage of increasingly good digital to analog conversion without having to replace your disc spinner, though there are one-box devices that have digital inputs for use with sources other than the transport.
Disadvantages -- Complexity, twice the boxes and cables. Requires a little more knowledge to integrate properly but that's an issue only once.

An important underlying consideration is that disc spinners of all kinds are an old technology as technologies go and some companies, like OPPO, are already discontinuing manufacturing of players that use them. That will only accelerate and if it survives at all it will be as a niche market with the resulting increase in cost. In a few years it will be as hard to find a transport of any kind as it is to find a SCSI drive for a computer now.