SAN JOSE, Calif., and EINDHOVEN, Netherlands, Sept. 5 /PRNewswire-
FirstCall/ -- DSP Group, Inc. (Nasdaq: DSPG) and NXP Semiconductors, the
independent semiconductor company founded by Philips, today announced the
completion of DSP Group's acquisition of NXP's Cordless and VoIP terminals
business. The transaction, which was initially announced on May 14, 2007,
involved the initial payment by DSP Group of approximately $270 million,
consisting of approximately $200 million in cash and 4,186,603 newly issued
shares of DSP Group's common stock. As a result of the transaction, NXP now
owns approximately 13% of DSP Group's outstanding common stock and an NXP
nominee will be appointed to DSP Group's board of directors as a Class III
director to serve until DSP Group's annual meeting of stockholders in 2009.
DSP Group expects the transaction will have a positive impact on
earnings per share beginning in the fourth quarter of 2007, excluding
transaction expenses, intangible amortization and related one time charges
in connection with the acquisition.
DSP Group will update its financial outlook for the combined operations
and discuss the integration process on its scheduled third quarter results
earnings conference call on October 31, 2007.
About DSP Group
DSP Group, Inc. is a fabless semiconductor company, offering advanced
chip-set solutions for a variety of applications. DSP Group is a worldwide
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 (DSPs), portfolio of wireless
communication protocols, including DECT, Bluetooth and Wi-Fi, most advanced
Radio Frequency CMOS and SiGe, as well as VoIP ICs, DSP Group is a
worldwide 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, Bluetooth systems for voice,
data and video communication and deployment in residential, SOHO, SME,
enterprise and automotive applications. DSP Group ICs provide solutions for
MP3 players, VoIP Phones, Gateways, and Integrated Access Devices and are
widely used in Digital Voice Recorders. More information about DSP Group is
available at http://www.dspg.com.
About NXP
NXP is a top 10 semiconductor company founded by Philips more than 50
years ago. Headquartered in Europe, the company has 37,000 employees
working in more than 20 countries and posted sales of EUR 5 billion in
2006. NXP creates semiconductors, system solutions and software that
deliver better sensory experiences in mobile phones, personal media
players, TVs, set-top boxes, identification applications, cars and a wide
range of other electronic
devices. News from NXP is located at http://www.nxp.com.
Forward-looking statements of DSP Group
This press release contains forward-looking statements with respect to
the transaction, including the positive impact on DSP Group's EPS.
Forward-looking statements are subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected, expressed or implied by such forward-looking statements,
including, but not limited to: the risk that the business will not be
integrated successfully; the risk that the revenue potentials, cost savings
and any other synergies from the transaction may not be fully realized or
may take longer to realize than expected; disruptions in the business that
makes it more difficult for DSP Group to maintain relationships with
customers, employees or suppliers and other risks and uncertainties
associated with the integration. Actual results could differ materially
from those discussed in or implied by forward-looking statements for
various reasons, including those discussed in "Risk Factors" in DSP Group's
Form 10-Q for the quarter ended June 30, 2007. You should not place undue
reliance on any forward-looking statements. Except as expressly required by
the federal securities laws, DSP Group undertakes no obligation to publish,
update or revise any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other reason.
CONTACT:
NXP
Lieke de Jong-Tops
lieke.de.jong-tops@nxp.com+31 (0)40 2725202
DSP Group
Ofer Elyakim,
ofere@dsp.co.il
+1 (408) 986-4421
SOURCE DSP Group, Inc.
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Related links:
http://www.dspg.com
http://www.nxp.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20020715/SFM118LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Lieke de Jong-Tops of NXP, +31-0-40-2725202,
lieke.de.jong-tops@nxp.com; or Ofer Elyakim of DSP Group,
+1-408-986-4421, ofere@dsp.co.il
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