SANTA CLARA, Calif., April. 22 /PRNewswire-FirstCall/ --
DSP Group, Inc. (Nasdaq: DSPG) today announced results for the first quarter
of 2002, ending March 31, 2002.
The Company announced first quarter 2002 revenues of $25,222,000, an
increase of 4% from revenues of $24,174,000 for the first quarter 2001. Net
income for the first quarter was $2,690,000 a decrease of 52% from $5,662,000
net income for the first quarter of 2001. Diluted earnings per share (EPS) for
the first quarter of 2002 decreased 52% to $0.10, compared with $0.21, for the
first quarter of 2001. Net income and EPS, excluding a one-time write-off of
certain expenses including expenses related to the abandoned IPO of the
Company's IP licensing business, would have been $3,267,000 and $0.12,
respectively, for the first quarter ended March 31, 2002.
Moshe Zelnik, CFO of DSP Group, noted that the operating expenses include
the one-time unusual expense of $865,000, $767,000 of which expense relates to
the abandoned IPO of the IP Licensing business.
Eli Ayalon, Chairman & CEO of DSP Group, stated, "We are glad to announce
that in the first quarter of 2002, one of our largest OAK DSP Core Licensees,
has licensed our TeakLite DSP Core for GPRS applications."
Ayalon added, "We are looking forward to the closing of the recently
announced proposed merger of our DSP Core Licensing business with Parthus
Technologies plc. The chip development business for advanced applications
show a clear trend towards open DSP architecture and a growing demand for
complete platform level IP solutions. We view Parthus Technologies as the
leading supplier of complete platform level IP solutions. We believe that the
merger will create a one stop shop for DSP based Silicon IP, and will offer
OEM's and Semiconductor Companies a faster and easier entry to growing
technology markets."
About DSP Group, Inc.
DSP Group, Inc. is a global leader in the development and marketing of
high-performance, cost-effective, licensable digital signal processing cores.
The Company's family of DSP cores provides solutions for low-power,
cost-driven applications, such as cellular, broadband communication, VoIP,
multimedia, advanced telecommunication systems, disk drive controllers and
many other types of embedded control applications. By combining its DSP core
technologies with its proprietary, advanced speech-processing algorithms
-- DSP Group also delivers a wide range of enabling, application specific ICs
for full-featured integrated telephony products and applications, including
900 MHz and 2.4 GHz wireless technologies. DSP Group, Inc., maintains an
international presence with offices located around the globe.
Statements contained in this release relating to the proposed merger of
our core licensing business with Parthus Technologies plc, the trend toward
open DSP architecture and growing demand for complete platform level IP
solutions are forward looking statements. They involve risks and
uncertainties, most importantly whether and if so when the proposed merger
will occur and whether the anticipated benefits of that merger will be
realized. All forward-looking statements are made pursuant to the Safe-Harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
factors and other factors which may effect future operating results or our
stock price are discussed under "RISK FACTORS" in our report on form 10-K for
the year ended December 31, 2001, which has been filed with the Securities and
Exchange Commission and is also available on our Web site (http://www.dspg.com) under
Investor Relations.
Earnings conference call
DSP Group has scheduled a conference call for 5:00 p.m. EDT today to
discuss first quarter results and invites you to listen to a the 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 website at http://www.dspg.com or through PRNewswire web site at
http://www.videonewswire.com/event.asp?id=4167 .
For more information, please contact Yaniv Arieli, Director of Investor
Relations, DSP Group at 408-986-4423.
DSP GROUP, INC.
TRENDED CONSOLIDATED FINANCIAL STATEMENTS
STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended
March 31,
2002 2001
Revenues:
Product sales $20,585 $18,048
Software licensing, royalties and other 4,637 6,126
--- ---
Total revenues 25,222 24,174
Cost of revenues:
Product sales 12,459 9,683
Software licensing, royalties and other 464 324
--- ---
Total cost of revenues 12,923 10,007
--- ---
Gross profit 12,299 14,167
Operating expenses:
Research and development, net 6,554 6,272
Sales and marketing 2,639 2,735
General and administrative 1,623 1,696
Aborted offering expenses and other 865 ---
--- ---
Total operating expenses 11,681 10,703
--- ---
Operating income 618 3,464
Other income (expense):
Interest and other income 2,682 3,467
Interest and other expenses (55) (84)
Equity in earnings of affiliate --- 105
Minority interest in losses of subsidiary --- 173
--- ---
Income before taxes on income 3,245 7,125
Taxes on income 555 1,463
--- ---
Net income $2,690 $5,662
Net earnings per share:
Basic $0.10 $0.21
Diluted $0.10 $0.21
Shares used in per share computations:
Basic 26,951 26,415
Diluted 28,059 27,438
DSP GROUP, INC.
TRENDED CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEETS
(In thousands)
March 31, December 31,
Assets 2002 2001
Current Assets:
Cash and cash equivalents $28,307 $39,146
Marketable securities and
short term bank deposits 68,274 70,893
Trade receivable, net 17,779 14,430
Inventories 2,549 2,098
Deferred income taxes 2,338 2,338
Other accounts receivable and prepaid
Expenses 1,097 1,866
--- ---
Total current assets 120,344 130,771
Property and equipment, net 7,088 7,589
Long term marketable securities 154,493 139,752
Other investments, net 17,580 25,536
Other assets, net 6,484 6,419
Severance pay fund 2,413 2,312
--- ---
Total Assets
$308,402 $312,379
Liabilities and Stockholders' Equity
Current liabilities:
Trade payable $9,190 $5,830
Other current liabilities 16,328 17,613
Total current liabilities 25,518 23,443
Long term liabilities:
Accrued severance pay 2,444 2,418
Deferred income taxes 3,835 7,541
-- --
Total long term liabilities 6,279 9,959
Stockholders' equity:
Common stock 27 27
Additional paid-in capital 155,969 155,969
Less cost of treasury stock (5,962) (8,623)
Accumulated other comprehensive
income (loss) (3,685) 2,652
Retained earnings 130,256 128,952
Total stockholders' equity 276,605 278,977
--- ---
Total liabilities and
stockholders' equity $308,402 $312,379
SOURCE DSP Group, Inc.
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Related links:
http://www.dspg.com
CONTACT:
Yaniv Arieli, Director of Investor Relations
of DSP Group, +1-408-986-4423
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