Revenue and Operating Income for the Quarter Increased 33% & 108% YoY,
Respectively
SANTA CLARA, Calif., April 21 /PRNewswire-FirstCall/ -- DSP Group, Inc.
(Nasdaq: DSPG) today announced its results for the quarter ended
March 31, 2004.
Revenues for the first quarter of 2004 were $38,708,000, an increase of
33% from revenues of $29,011,000 for the first quarter of 2003. Net income for
the first quarter of 2004 was $20,114,000, as compared to $4,267,000 for the
first quarter of 2003. Diluted earnings per share (EPS) for the first quarter
of 2004 were $0.66, as compared to $0.15 for the first quarter of 2003.
Results for the first quarter of 2004 included a capital gain of
$20,827,000 resulting from the sale of two million shares of the AudioCodes
Ltd. stock and a capital gain of $490,000 resulting from the sale of all of
the Company's holdings in the Tomen Corporation stock, both during the first
quarter of 2004. These capital gains are included under "Other Income
(expense)" in the Company's statements of income. DSP Group still holds
approximately 2.45 million shares of the AudioCodes stock.
Pro forma net income and diluted EPS for the first quarter of 2004,
excluding the effect of the one-time capital gains described above and the
related taxes of $8,517,000, would have been $7,314,000 and $0.24,
respectively. The Company achieved an increase of 71% and 60% for pro forma
net income and diluted EPS, respectively, as compared to the same period in
2003.
Eli Ayalon, Chairman and CEO of DSP Group, stated: "We are very pleased
with our financial and business achievements in the first quarter of 2004. We
continue to see strong demand for our products, resulting in strong revenues
in the first quarter and good visibility into the second quarter of 2004. The
outlook for the rest of the year is positive, and we are encouraged by the
positive reaction to our new products for the European market."
About DSP Group
DSP Group, Inc. is a fabless semiconductor company, offering complex
Integrated Circuit (IC) solutions. DSP Group is a world leader in the
short-range wireless communication market, enabling home networking
convergence for voice, video & data. By combining its in-house technologies of
Digital Signal Processors, portfolio of wireless communication protocols,
including DECT and Bluetooth, most advanced Radio Frequency CMOS and SiGe, as
well as VoIP ICs, DSP Group is a world leader and a one-stop-shop for a wide
range of applications. These applications include: ISM band digital 900MHz,
2.4GHz and 5.8GHz telephony; European DECT (1.9GHz) telephony; and Bluetooth
systems for voice, data and video communication, which are employed in
residential, SOHO, SME, enterprise and automotive applications. DSP Group's
ICs provide solutions for MP3 players, VoIP phones, gateways, and Integrated
Access Devices (IADs) and are widely used in Digital Voice Recorders (DVRs).
More information about DSP Group is available at http://www.dspg.com.
Forward-Looking Statements
This press release may contain statements that qualify as "forward-looking
statements" under the Private Securities Litigation Reform Act of 1995,
including statements made by Mr. Ayalon relating to continuing strong demand
for DSP Group's products, the positive outlook for the second quarter of 2004
and the rest of the year, and the positive reaction to DSP Group's new
products for the European market. These forward-looking statements are based
on current expectations and DSP Group assumes no obligation to update this
information. In addition, the events described in these forward-looking
statements may not actually arise. DSP Group's actual results could differ
materially from those described in this press release as a result of various
factors, including unexpected delays in the introduction of new products;
failure to achieve broad market acceptance of existing and new products by
existing and potential OEM customers; DSP Group's inability to add new
customers and develop and produce new products at competitive costs and in a
timely manner; decline or fluctuations in gross margins and the effect on
revenues and profitability; and general market demand for products that
incorporate DSP Group's technology in the market. These factors and other
factors which may affect future operating results or DSP Group's stock price
are discussed under "RISK FACTORS" in the Form 10-K for the year ended
December 31, 2003, as well as other reports, including Form 10-Qs, DSP Group
has filed with the Securities and Exchange Commission and which are available
on DSP Group's Web site (http://www.dspg.com) under Investor Relations.
Earnings conference call
DSP Group has scheduled a conference call for 8:30 a.m. EDT today to
discuss the financial results for the first quarter of 2004 and invites you to
listen to a live broadcast over the Internet. The broadcast can be accessed by
all interested parties through the Investor Relations section (investor
message board) of DSP Group's Web site at http://www.dspg.com or link to:
http://phx.corporate-ir.net/phoenix.zhtml?c=101665&p=irol-necalendar .
If you cannot join the call, please listen to the replay, which will be
available for approximately two weeks after the call on DSP Group's Web site
or by calling the following numbers:
-- US Dial-In # 1-888-286-8010 (passcode: 68232467)
-- International Dial-In # 617-801-6888 (passcode: 68232467)
CONTACT: Yaniv Arieli, President of US Operations, Investor Relations of
DSP Group Inc., +1-408-986-4423, or yarieli@dspg.com.
DSP GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended
March 31,
2004 2003
Product revenues and other $38,708 $29,011
Cost of product revenues and other 19,858 16,777
Gross profit 18,850 12,234
Operating expenses:
Research and development 7,554 5,120
Sales and marketing 2,803 2,316
General and administrative 1,806 1,581
Total operating expenses 12,163 9,017
Operating income 6,687 3,217
Other income:
Interest and other income, net 2,125 1,924
Capital gains 21,317 --
Income before provision for income taxes 30,129 5,141
Provision for income taxes 10,015 874
Net income $20,114 $4,267
Net earnings per share:
Basic $0.70 $0.16
Diluted $0.66 $0.15
Weighted average number of shares of
Common Stock used in the computation of:
Basic 28,767 27,324
Diluted 30,698 28,428
DSP GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2004 2003
Assets (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $81,467 $36,812
Marketable securities and cash deposit 27,324 42,490
Trade receivables, net 15,061 15,844
Inventories 9,022 8,466
Other accounts receivable 1,106 1,462
Deferred income taxes 1,326 1,326
Total current assets 135,306 106,400
Property and equipment, net 6,959 7,108
Long term marketable securities 208,005 197,071
Investment in equity securities of
traded companies 28,428 47,138
Severance pay fund 2,608 2,360
Long term pre-paid expenses and lease deposits 544 513
Goodwill 5,804 5,804
Other intangible assets 1,923 2,076
Total assets $389,577 $368,470
Liabilities and Stockholders' Equity
Current liabilities:
Trade payable $17,556 $11,221
Other current liabilities 39,267 34,292
Total current liabilities 56,823 45,513
Long term liabilities:
Accrued severance pay 2,690 2,555
Long term liability 1,429 1,429
Deferred income taxes 9,784 14,592
Total long term liabilities 13,903 18,576
Stockholders' equity:
Common Stock 29 29
Additional paid-in capital 177,350 174,700
Accumulated other comprehensive income 14,127 23,045
Retained earnings 127,345 107,799
Loss - Cost of treasury stock -- (1,192)
Total stockholders' equity 318,851 304,381
Total liabilities and stockholders' equity $389,577 $368,470
(Logo: http://www.newscom.com/cgi-bin/prnh/20020715/SFM118LOGO )
SOURCE DSP Group, Inc.
 back to top
Related links:
http://www.dspg.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20020715/SFM118LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Yaniv Arieli, President of US Operations,
Investor Relations of DSP Group Inc., +1-408-986-4423, or
yarieli@dspg.com
|
