The DCS (Digital Color Separation) format is a version of the standard EPS format that lets you save spot color channels in Photoshop. Spot channels are not the same as the CMYK (Cyan, Magenta, Yellow and Black) channels. Spot channels allow the designer to use the Pantone color space which is referred to as PMS colors. Basically, to understand the difference between CMYK and spot colors think of the color green. To create green in the CMYK color format you print the cyan and yellow equally thus blending together to make green. Spot colors rely on the purity of the chosen green represented in the swatch book and there is no need for blended channels (channels = color plates/separations)
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Understanding Color Separations
Spot Channel Tutorial
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