Achieves All Time Revenue Record
SANTA CLARA, Calif., Oct. 20 /PRNewswire-FirstCall/ -- DSP Group, Inc.
(Nasdaq: DSPG) today announced its results for the quarter ended
September 30, 2003.
Revenues for the third quarter of 2003 were $47,178,000, an increase of
7% from revenues of $44,005,000 for the third quarter of 2002. Net income for
the third quarter of 2003 was $9,640,000 compared with $8,772,000 for the
third quarter of 2002 (which included net income of $981,000 related to the
discontinued operations of the DSP cores licensing business). Diluted earnings
per share (EPS) for both the third quarter of 2003 and 2002 was $0.32. Diluted
EPS for the third Quarter of 2002 included an amount of $0.03 related to the
discontinued operations.
Eli Ayalon, Chairman & CEO of DSP Group, stated, "We are very pleased with
the third quarter results, especially for our continuous quarterly revenue
growth on a year-over-year basis for the 9th consecutive quarter. The third
quarter is usually the strongest seasonal quarter in our business, we have
encountered strong demand for all of our product lines in the third quarter of
2003. We continue to have strong bookings and good visibility into the fourth
quarter of 2003."
Moshe Zelnik, CFO of DSP Group, stated: "As previously announced, during
the third quarter of 2003, we repurchased 360,000 shares of our Common Stock
for a total amount of $7,871,000, at an average price of $21.86 per share. As
of September 30, 2003, our cash position, consisting of cash, cash equivalents
and marketable securities, reached a level of approximately $267.7 million,
reflecting approximately $23.8 million of positive cash flow from operations
during the first nine months of 2003."
About DSP Group
DSP Group, Inc. is a fabless semiconductor company that is a leader in the
short-range wireless market. By combining its DSP cores technology with
advanced RF, communication, video technology and speech-processing algorithms,
DSP Group is a worldwide leader in developing and providing short-range
communication applications that include digital 900MHz, 2.4GHz, DECT (1.9GHz),
5.8GHz and Bluetooth for voice, data and video communication in residential,
SOHO, SME, enterprise and automotive applications. DSP Group's products
include advanced RF CMOS and communications technology. DSP Group also
develops and markets embedded, integrated silicon/software solution for
Voice-over-Digital-Subscriber Line (VoDSL) and Voice-over-Internet-Protocol
(VoIP) applications, as well as other Voice-over-Packet applications for
Integrated Access Device (IAD) and IP phone. More information about DSP Group
is available at http://www.dspg.com.
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 strong booking and good
visibility into the fourth quarter of 2003. 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; 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, 2002, 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 third quarter results 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-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 # 1-888-286-8010 (passcode: 93262663)
-- International Dial-In # 617-801-6888 (passcode: 93262663)
For more information, please contact Yaniv Arieli, President of US
Operations, Investor Relations, DSP Group at (408) 986-4423.
DSP GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
2003 2002 2003 2002
Product revenues and
other $47,178 $44,005 $114,739 $97,029
Cost of product revenues
and other 25,643 26,433 63,626 58,199
Gross profit 21,535 17,572 51,113 38,830
Operating expenses:
Research and development 6,704 5,245 17,402 15,124
Sales and marketing 3,429 3,501 8,616 7,978
General and
administrative 1,899 1,608 5,006 3,524
In-process research
& development write-off -- -- 2,727 --
Aborted spin off
expenses and other -- -- -- 865
Total operating expenses 12,032 10,354 33,751 27,491
Operating income 9,503 7,218 17,362 11,339
Other income
Interest and other
income, net 2,112 2,416 5,945 7,566
Income after financial and
other income 11,615 9,634 23,307 18,905
Impairment of
available-for-sale -- -- -- (*)(9,815)
Marketable securities -- -- 241 --
Capital gains
Income before provision for
income taxes 11,615 9,634 23,548 9,090
Provision for income Taxes 1,975 1,843 4,154 (**)44
Net income from continuing
operations 9,640 7,791 19,394 9,046
Net income from discontinued
operations (***) -- 981 -- 2,492
Net income $9,640 $8,772 $19,394 $11,538
Net earnings per share for
continuing operations:
Basic $0.34 $0.29 $0.70 $0.34
Diluted $0.32 $0.29 $0.66 $0.32
Net earnings per share for
discontinued operations:
Basic $0.00 $0.03 $0.00 $0.09
Diluted $0.00 $0.03 $0.00 $0.09
Net earnings per share
(combined):
Basic $0.34 $0.32 $0.70 $0.43
Diluted $0.32 $0.32 $0.66 $0.41
Weighted average number
of shares of Common Stock
used in computing of:
Basic 28,168 27,104 27,677 27,030
Diluted 30,142 27,707 29,343 27,848
(*) Related to impairment of marketable securities
(**) Included a tax credit related to impairment of marketable
securities
(***) Related to the DSP cores licensing business (Ceva) which was
discontinued in November 2002 following the combination of Ceva
with Parthus Technologies plc to form ParthusCeva, Inc.
DSP GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2003 2002
Assets (Unaudited) (Audited)
Current assets:
Cash and cash equivalents $35,316 $39,919
Marketable securities 47,177 45,371
Trade receivables, net 18,131 4,873
Inventories 7,316 6,916
Other accounts receivable 1,740 1,352
Deferred income taxes 1,685 1,685
Assets of discontinued operation, net 679 4,737
Total current assets 112,044 104,853
Property and equipment, net 4,597 4,690
Long term marketable securities 185,169 150,692
Investment in equity security of traded
companies 34,023 12,031
Severance pay fund 2,177 1,616
Long term pre-paid expenses and lease deposits 421 386
Goodwill 5,804 5,804
Other intangible assets 2,230 --
Total Assets $346,465 $280,072
Liabilities and Stockholders' Equity
Current liabilities:
Trade payable $9,420 $6,745
Other current liabilities 32,898 21,552
Total current liabilities 42,318 28,297
Long term liabilities:
Accrued severance pay 2,325 1,686
Deferred income taxes 10,200 2,371
Other long term liabilities 1,421 --
Total long term liabilities 13,946 4,057
Stockholders' equity:
Common Stock 29 27
Additional paid-in capital 173,021 156,443
Accumulated other comprehensive income 14,798 476
Retained earnings 102,353 90,772
Total stockholders' equity 290,201 247,718
Total liabilities and stockholders' equity $346,465 $280,072
SOURCE DSP Group, Inc.
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http://www.dspg.com
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CONTACT:
Yaniv Arieli, President of US Operations,
Investor Relations of DSP Group, Inc., +1-408-986-4423
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