DSP Group, Inc. Reports First Quarter 2001 Earnings

Apr 24, 2001, 01:00 ET from DSP Group, Inc.

    SANTA CLARA, Calif., April 24 /PRNewswire Interactive News Release/ --
 DSP Group, Inc. (Nasdaq:   DSPG) today announced results for the first quarter
 of 2001.
     For the quarter ended March 31, 2001, revenues were $24,174,000, compared
 with revenues of $23,386,000 for the first quarter of 2000, an increase of
 3% year over year.  Net income for the first quarter of 2001 was $5,662,000,
 compared with net income of $5,854,000 for the first quarter of 2000,
 excluding the effects in 2000 of unusual items and a one-time capital gain.
 Earnings per share (diluted) were $0.21 in each of the first quarters,
 excluding the effects of unusual expenses and a one-time capital gain in the
 first quarter of 2000.
     Earnings per share (diluted) including those items were $0.54 (diluted)
 for the first quarter of 2000.
     Eli Ayalon, Chairman and CEO of DSP Group, stated, "In the first quarter
 we successfully achieved our goals, in terms of sales revenues and earnings
 per share (EPS), despite challenging market conditions.  During the first
 quarter of 2001, our product sales were 2% lower and our licensing revenues
 were 22% higher than the comparable quarter of 2000.  We are also very pleased
 that the number of our licensees continued to grow, with Philips joining the
 list of licensees of our DSP Cores by licensing the TeakLite DSP Core."
     Mr. Ayalon added, "We increased our research and development expenses
 during the first quarter of 2001 compared to the first quarter of 2000 by 34%,
 reflecting our belief that market conditions will improve and that the
 development of DSP Core Technology and products in Telephony and Voice Over PN
 will position DSP Group for future growth."
 
     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 concerning the effect of the
 Company's increase in research and development expenses, the future growth of
 the Company's business and the demand for the Company's core technologies may
 constitute forward-looking statements.  These statements involve certain risks
 and uncertainties such as:  a slowdown in the U.S. consumer market, where most
 of the products, including the Company's ICs are sold; acceptance of the
 Company's new products by existing OEM customers and potential customers; and
 the Company's ability to develop and produce its new products at competitive
 costs.
     Additional information is available on the World Wide Web at www.dspg.com.
 This press release is also available through the Company's News on Call fax
 service, which can be reached at 800-758-5804, company code 112025.
     This release and prior releases are available on the KCSA Public Relations
 Worldwide Web site at www.kcsa.com.
 
 
                                  DSP GROUP, INC.
                     TRENDED CONSOLIDATED FINANCIAL STATEMENTS
                                STATEMENTS OF INCOME
                      (In thousands, except per share amounts)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001          2000
     Revenues:
       Product sales                                   $18,048       $18,362
       Licensing, royalties and other                    6,126         5,024
 
     Total revenues                                     24,174        23,386
 
 
     Cost of revenues:
       Product sales                                     9,683        10,475
       Licensing, royalties and other                      324           323
 
     Total cost of revenues                             10,007        10,798
 
     Gross profit                                       14,167        12,588
 
     Operating expenses:
       Research and development, net                     6,272         4,676
       Sales and marketing                               2,735         2,853
       General and administrative                        1,696         1,292
       Unusual items                                        --        14,154
 
       Total operating expenses                         10,703        22,975
 
     Operating income (loss)                             3,464      (10,387)
     Other income (expense):
       Interest and other income                         3,467         2,795
       Interest and other expenses                        (84)          (42)
       Equity in income of affiliate                       105           437
     Minority interest in losses of subsidiary             173            --
     Capital gains from realization of
         Investments                                        --        40,009
 
     Income before provision for income taxes            7,125        32,812
     Provision for income taxes                          1,463        17,403
 
     Net income                                         $5,662       $15,409
     Net earnings per share:
       Basic                                             $0.21         $0.60
       Diluted                                           $0.21         $0.54
     Shares used in per share computations:
       Basic                                            26,415        25,790
       Diluted                                          27,438        28,413
 
 
                                  DSP GROUP, INC.
                     TRENDED CONSOLIDATED FINANCIAL STATEMENTS
                                   BALANCE SHEETS
                                   (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
     Assets
     Current Assets:
       Cash and cash equivalents, marketable
        securities and short term deposits           $227,340       $223,201
       Trade receivable, net                           14,020         16,932
       Inventories                                      2,898          2,815
       Deferred income taxes                            4,554          4,554
       Other accounts receivable and prepaid
         Expenses                                       1,752          1,445
 
     Total current assets                             250,564        248,947
     Property and equipment, net                        7,042          6,451
     Other investments, net of accumulated
      amortization                                     21,043         21,000
     Other assets, net of accumulated
       Amortization                                     6,991          4,259
     Severance pay fund                                 2,116          2,150
 
     Total Assets                                    $287,756       $282,807
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Trade payable                                   $6,964         $8,092
       Other current liabilities                       16,476         19,934
 
     Total current liabilities                         23,440         28,026
     Long term liabilities:
     Accrued severance pay                              2,169          2,147
     Deferred income taxes                              5,559          5,559
     Minority interest                                     --            910
 
     Total long term liabilities                        7,728          8,616
     Stockholders' equity:
       Common stock                                        27             27
       Additional paid-in capital                     155,438        151,787
       Other comprehensive income (loss)                 (82)             --
       Retained earnings                              118,463        114,291
       Less Cost of treasury stock                   (17,258)       (19,940)
 
     Total stockholders' equity                       256,588        246,165
 
     Total liabilities and stockholders' equity      $287,756       $282,807
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X67925247
 
 

SOURCE DSP Group, Inc.
    SANTA CLARA, Calif., April 24 /PRNewswire Interactive News Release/ --
 DSP Group, Inc. (Nasdaq:   DSPG) today announced results for the first quarter
 of 2001.
     For the quarter ended March 31, 2001, revenues were $24,174,000, compared
 with revenues of $23,386,000 for the first quarter of 2000, an increase of
 3% year over year.  Net income for the first quarter of 2001 was $5,662,000,
 compared with net income of $5,854,000 for the first quarter of 2000,
 excluding the effects in 2000 of unusual items and a one-time capital gain.
 Earnings per share (diluted) were $0.21 in each of the first quarters,
 excluding the effects of unusual expenses and a one-time capital gain in the
 first quarter of 2000.
     Earnings per share (diluted) including those items were $0.54 (diluted)
 for the first quarter of 2000.
     Eli Ayalon, Chairman and CEO of DSP Group, stated, "In the first quarter
 we successfully achieved our goals, in terms of sales revenues and earnings
 per share (EPS), despite challenging market conditions.  During the first
 quarter of 2001, our product sales were 2% lower and our licensing revenues
 were 22% higher than the comparable quarter of 2000.  We are also very pleased
 that the number of our licensees continued to grow, with Philips joining the
 list of licensees of our DSP Cores by licensing the TeakLite DSP Core."
     Mr. Ayalon added, "We increased our research and development expenses
 during the first quarter of 2001 compared to the first quarter of 2000 by 34%,
 reflecting our belief that market conditions will improve and that the
 development of DSP Core Technology and products in Telephony and Voice Over PN
 will position DSP Group for future growth."
 
     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 concerning the effect of the
 Company's increase in research and development expenses, the future growth of
 the Company's business and the demand for the Company's core technologies may
 constitute forward-looking statements.  These statements involve certain risks
 and uncertainties such as:  a slowdown in the U.S. consumer market, where most
 of the products, including the Company's ICs are sold; acceptance of the
 Company's new products by existing OEM customers and potential customers; and
 the Company's ability to develop and produce its new products at competitive
 costs.
     Additional information is available on the World Wide Web at www.dspg.com.
 This press release is also available through the Company's News on Call fax
 service, which can be reached at 800-758-5804, company code 112025.
     This release and prior releases are available on the KCSA Public Relations
 Worldwide Web site at www.kcsa.com.
 
 
                                  DSP GROUP, INC.
                     TRENDED CONSOLIDATED FINANCIAL STATEMENTS
                                STATEMENTS OF INCOME
                      (In thousands, except per share amounts)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001          2000
     Revenues:
       Product sales                                   $18,048       $18,362
       Licensing, royalties and other                    6,126         5,024
 
     Total revenues                                     24,174        23,386
 
 
     Cost of revenues:
       Product sales                                     9,683        10,475
       Licensing, royalties and other                      324           323
 
     Total cost of revenues                             10,007        10,798
 
     Gross profit                                       14,167        12,588
 
     Operating expenses:
       Research and development, net                     6,272         4,676
       Sales and marketing                               2,735         2,853
       General and administrative                        1,696         1,292
       Unusual items                                        --        14,154
 
       Total operating expenses                         10,703        22,975
 
     Operating income (loss)                             3,464      (10,387)
     Other income (expense):
       Interest and other income                         3,467         2,795
       Interest and other expenses                        (84)          (42)
       Equity in income of affiliate                       105           437
     Minority interest in losses of subsidiary             173            --
     Capital gains from realization of
         Investments                                        --        40,009
 
     Income before provision for income taxes            7,125        32,812
     Provision for income taxes                          1,463        17,403
 
     Net income                                         $5,662       $15,409
     Net earnings per share:
       Basic                                             $0.21         $0.60
       Diluted                                           $0.21         $0.54
     Shares used in per share computations:
       Basic                                            26,415        25,790
       Diluted                                          27,438        28,413
 
 
                                  DSP GROUP, INC.
                     TRENDED CONSOLIDATED FINANCIAL STATEMENTS
                                   BALANCE SHEETS
                                   (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
     Assets
     Current Assets:
       Cash and cash equivalents, marketable
        securities and short term deposits           $227,340       $223,201
       Trade receivable, net                           14,020         16,932
       Inventories                                      2,898          2,815
       Deferred income taxes                            4,554          4,554
       Other accounts receivable and prepaid
         Expenses                                       1,752          1,445
 
     Total current assets                             250,564        248,947
     Property and equipment, net                        7,042          6,451
     Other investments, net of accumulated
      amortization                                     21,043         21,000
     Other assets, net of accumulated
       Amortization                                     6,991          4,259
     Severance pay fund                                 2,116          2,150
 
     Total Assets                                    $287,756       $282,807
 
     Liabilities and Stockholders' Equity
     Current liabilities:
       Trade payable                                   $6,964         $8,092
       Other current liabilities                       16,476         19,934
 
     Total current liabilities                         23,440         28,026
     Long term liabilities:
     Accrued severance pay                              2,169          2,147
     Deferred income taxes                              5,559          5,559
     Minority interest                                     --            910
 
     Total long term liabilities                        7,728          8,616
     Stockholders' equity:
       Common stock                                        27             27
       Additional paid-in capital                     155,438        151,787
       Other comprehensive income (loss)                 (82)             --
       Retained earnings                              118,463        114,291
       Less Cost of treasury stock                   (17,258)       (19,940)
 
     Total stockholders' equity                       256,588        246,165
 
     Total liabilities and stockholders' equity      $287,756       $282,807
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X67925247
 
 SOURCE  DSP Group, Inc.

RELATED LINKS

http://www.dspg.com