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
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
DSP Group, Inc. Reports First Quarter 2001 Earnings