Investor Overview

Press Release

View printer-friendly version << Back
DSP Group, Inc. Reports First Quarter 2001 Earnings


FIRST QUARTER 2001 EARNINGS

SANTA CLARA, Calif., April 24, 2001 -- 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.

Earning 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,
  2002 2001
Revenues:    
Product sales $ 20,585 $ 18,048
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
  ¾ ¾ ¾ ¾
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