Revenue and Diluted EPS for Q2 Increased 14% and 58%, YoY, Respectively
SANTA CLARA, Calif., July 19 /PRNewswire-FirstCall/ -- DSP Group, Inc.
(Nasdaq: DSPG) today announced its results for the quarter ended June 30,
2004.
Revenues for the second quarter of 2004 were $44,016,000, an increase of
14% from revenues of $38,550,000 for the second quarter of 2003. Net income
for the second quarter of 2004 increased 71% to $9,371,000, as compared to
$5,487,000 for the second quarter of 2003. Diluted earnings per share (EPS)
for the second quarter of 2004 increased 58% to $0.30, as compared to
$0.19 for the second quarter of 2003.
Results for the second quarter of 2004 included a capital gain of
$7,671,000 resulting from the sale of 801,000 shares of AudioCodes Ltd. and a
one-time goodwill impairment charge of $4,304,000 arising from the GAAP
required reevaluation of the remaining goodwill from the acquisition of
VoicePump Inc. in March 2000. The capital gain is included under "Other
Income (expense)" in the Company's statements of income and the goodwill
impairment is included in the Company's operating expenses. Following the
aforementioned sale of AudioCodes shares, DSP Group continues to hold
approximately 1.65 million shares AudioCodes stock. Results for the second
quarter of 2003 included a one-time write-off in the amount of $2,727,000 for
in-process research and development related to the Teleman Multimedia Inc.
acquisition in May 2003 and a capital gain of $241,000 from the sale of Tower
Semiconductor Ltd. stock.
Pro-forma net income for the second quarter of 2004, excluding the effects
of the capital gain and related taxes of $3,068,000 as well as the impairment
of goodwill, increased by 18% to $9,072,000 from $7,701,000 in the second
quarter of 2003 (excluding one time net capital gain and write-off of
in-process research and development). Pro-forma diluted earnings per share
(EPS) increased by 12% to $0.29 in the second quarter of 2004 from $ 0.26 in
the second quarter of 2003.
The Company believes that this pro forma presentation of net income and
diluted EPS is useful to investors in comparing results for the quarter ended
June 30, 2004 to the same period during 2003, because it excludes items that
management does not consider meaningful for purposes of analyzing the
Company's operating results and making budget-planning decisions.
Eli Ayalon, Chairman and CEO of DSP Group, stated: "We are very pleased to
report another good quarter for DSP Group, in which we continued to grow our
revenues and EPS as compared to the same period in 2003. We also advanced in
our major R&D projects and in forming up our strategies towards future
business expansion".
Moshe Zelnik, CFO of DSP Group said, "In the first weeks of July 2004 we
repurchased 210,000 shares of our common stock for a total amount of
$4,920,000 at an average price of $23.43 per share. During the year ended
December 31, 2003, we repurchased 746,000 shares of our common stock for a
total amount of $16,157,000 at an average price of $21.66 per share. As of
June 30, 2004, our cash position, consisting of cash, cash equivalents and
marketable securities, reached a level of approximately $321.5 million".
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.
Earnings conference call
DSP Group has scheduled a conference call for 5:00 p.m. EDT today to
discuss the financial results for the second 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://ir.dspg.com./phoenix.zhtml?c=101665&p=irol-calendar .
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 # 888-286-8010 (passcode: 87994209)
-- International Dial-In # 617-801-6888 (passcode: 87994209)
For more information, please contact Yaniv Arieli, President of US
Operations, Investor Relations, DSP Group Inc. at 408-986-4423; or e-mail:
yarieli@dspg.com
DSP GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - US GAAP
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Product revenues and
other $44,016 $ 38,550 $82,724 $ 67,561
Cost of product revenues
and other 22,918 21,206 42,776 37,983
Gross profit 21,098 17,344 39,948 29,578
Operating expenses:
Research and development 7,310 5,578 14,864 10,698
Sales and marketing 3,282 2,871 6,085 5,187
General and administrative 1,734 1,526 3,540 3,107
Impairment of goodwill 4,304 -- 4,304 --
In-process research
& development write-off -- 2,727 -- 2,727
Total operating expenses 16,630 12,702 28,793 21,719
Operating income 4,468 4,642 11,155 7,859
Other income:
Interest and other
income, net 2,159 1,909 4,284 3,833
Capital gains 7,671 241 28,988 241
Income before provision
for income taxes 14,298 6,792 44,427 11,933
Provision for income taxes 4,927 1,305 14,942 2,179
Net income $9,371 $5,487 $29,485 $9,754
Net earnings per share:
Basic $ 0.32 $ 0.20 $ 1.02 $ 0.36
Diluted $ 0.30 $ 0.19 $ 0.96 $ 0.34
Weighted average number
of shares of Common Stock
used in the computation of:
Basic 29,159 27,541 28,963 27,432
Diluted 30,957 29,459 30,827 28,944
DSP GROUP, INC.
CONSOLIDATED PRO-FORMA STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Product revenues and
other $ 44,016 $ 38,550 $ 82,724 $ 67,561
Cost of product revenues
and other 22,918 21,206 42,776 37,983
Gross profit 21,098 17,344 39,948 29,578
Operating expenses:
Research and development 7,310 5,578 14,864 10,698
Sales and marketing 3,282 2,871 6,085 5,187
General and administrative 1,734 1,526 3,540 3,107
Total operating expenses 12,326 9,975 24,489 18,992
Operating income 8,772 7,369 15,459 10,586
Other income:
Interest and other
income, net 2,159 1,909 4,284 3,833
Income after financial
and other income 10,931 9,278 19,743 14,419
Provision for income taxes 1,859 1,577 3,357 2,451
Net income $9,072 $ 7,701 $ 16,386 $ 11,968
Net earnings per:
Basic $ 0.31 $ 0.28 $ 0.57 $ 0.44
Diluted $ 0.29 $ 0.26 $ 0.53 $ 0.41
Weighted average number
of shares of Common Stock
used in computing of:
Basic 29,159 27,541 28,963 27,432
Diluted 30,957 29,459 30,827 28,944
The above pro forma
consolidated statements of
income have been adjusted
to exclude following items
to US GAAP reported net
income:
Reported net income per
US GAAP $ 9,371 $ 5,487 $ 29,485 $ 9,754
Adjustments:
Impairment of goodwill 4,304 -- 4,304 --
In-process research &
development write-off -- 2,727 -- 2,727
Capital gains (7,671) (241) (28,988) (241)
Tax expenses (benefit) 3,068 (272) 11,585 (272)
Pro forma net income $ 9,072 $ 7,701 $ 16,386 $ 11,968
DSP GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2004 2003
Assets (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 41,614 $36,812
Marketable securities and cash deposit 39,820 42,490
Trade receivables, net 20,303 15,844
Inventories 10,134 8,466
Other accounts receivable 10,601 1,462
Deferred income taxes 1,326 1,326
Total current assets 123,798 106,400
Property and equipment, net 6,908 7,108
Long term marketable securities 240,112 197,071
Investment in equity securities of
traded companies 19,714 47,138
Severance pay fund 2,846 2,360
Long term pre-paid expenses and
lease deposits 549 513
Goodwill 1,500 5,804
Other intangible assets 1,770 2,076
Total assets $ 397,197 $ 368,470
Liabilities and Stockholders' Equity
Current liabilities:
Trade payable $13,447 $11,221
Other current liabilities 41,116 34,292
Total current liabilities 54,563 45,513
Long term liabilities:
Accrued severance pay 2,959 2,555
Long term liability -- 1,429
Deferred income taxes 6,590 14,592
Total long term liabilities 9,549 18,576
Stockholders' equity:
Common Stock 29 29
Additional paid-in capital 186,359 174,700
Accumulated other comprehensive income 9,981 23,045
Retained earnings 136,716 107,799
Less - Cost of treasury stock -- (1,192)
Total stockholders' equity 333,085 304,381
Total liabilities and stockholders' equity $ 397,197 $ 368,470
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, DSP Group Inc., +1-408-986-4423, or
yarieli@dspg.com
|
