DSP Group, Inc. Reports First Quarter 2002 Earnings
SANTA CLARA, Calif., April. 22 /PRNewswire-FirstCall/ -- DSP Group, Inc. (Nasdaq: DSPG) today announced results for the first quarter of 2002, ending March 31, 2002.
The Company announced first quarter 2002 revenues of $25,222,000, an increase of 4% from revenues of $24,174,000 for the first quarter 2001. Net income for the first quarter was $2,690,000 a decrease of 52% from $5,662,000 net income for the first quarter of 2001. Diluted earnings per share (EPS) for the first quarter of 2002 decreased 52% to $0.10, compared with $0.21, for the first quarter of 2001. Net income and EPS, excluding a one-time write-off of certain expenses including expenses related to the abandoned IPO of the Company's IP licensing business, would have been $3,267,000 and $0.12, respectively, for the first quarter ended March 31, 2002.
Moshe Zelnik, CFO of DSP Group, noted that the operating expenses include the one-time unusual expense of $865,000, $767,000 of which expense relates to the abandoned IPO of the IP Licensing business.
Eli Ayalon, Chairman & CEO of DSP Group, stated, "We are glad to announce that in the first quarter of 2002, one of our largest OAK DSP Core Licensees, has licensed our TeakLite DSP Core for GPRS applications."
Ayalon added, "We are looking forward to the closing of the recently announced proposed merger of our DSP Core Licensing business with Parthus Technologies plc. The chip development business for advanced applications show a clear trend towards open DSP architecture and a growing demand for complete platform level IP solutions. We view Parthus Technologies as the leading supplier of complete platform level IP solutions. We believe that the merger will create a one stop shop for DSP based Silicon IP, and will offer OEM's and Semiconductor Companies a faster and easier entry to growing technology markets."
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 relating to the proposed merger of our core licensing business with Parthus Technologies plc, the trend toward open DSP architecture and growing demand for complete platform level IP solutions are forward looking statements. They involve risks and uncertainties, most importantly whether and if so when the proposed merger will occur and whether the anticipated benefits of that merger will be realized. All forward-looking statements are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. These factors and other factors which may effect future operating results or our stock price are discussed under "RISK FACTORS" in our report on form 10-K for the year ended December 31, 2001, which has been filed with the Securities and Exchange Commission and is also available on our Web site (www.dspg.com) under Investor Relations.
Earnings conference call
DSP Group has scheduled a conference call for 5:00 p.m. EDT today to discuss first quarter results and invites you to listen to a the 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 website at www.dspg.com or through PRNewswire web site at http://www.videonewswire.com/event.asp?id=4167 .
For more information, please contact Yaniv Arieli, Director of Investor Relations, DSP Group at 408-986-4423.
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 Software licensing, royalties and other 4,637 6,126 --- --- Total revenues 25,222 24,174 Cost of revenues: Product sales 12,459 9,683 Software licensing, royalties and other 464 324 --- --- Total cost of revenues 12,923 10,007 --- --- Gross profit 12,299 14,167 Operating expenses: Research and development, net 6,554 6,272 Sales and marketing 2,639 2,735 General and administrative 1,623 1,696 Aborted offering expenses and other 865 --- --- --- Total operating expenses 11,681 10,703 --- --- Operating income 618 3,464 Other income (expense): Interest and other income 2,682 3,467 Interest and other expenses (55) (84) Equity in earnings of affiliate --- 105 Minority interest in losses of subsidiary --- 173 --- --- Income before taxes on income 3,245 7,125 Taxes on income 555 1,463 --- --- Net income $2,690 $5,662 Net earnings per share: Basic $0.10 $0.21 Diluted $0.10 $0.21 Shares used in per share computations: Basic 26,951 26,415 Diluted 28,059 27,438 DSP GROUP, INC. TRENDED CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEETS (In thousands)
March 31, December 31, Assets 2002 2001 Current Assets: Cash and cash equivalents $28,307 $39,146 Marketable securities and short term bank deposits 68,274 70,893 Trade receivable, net 17,779 14,430 Inventories 2,549 2,098 Deferred income taxes 2,338 2,338 Other accounts receivable and prepaid Expenses 1,097 1,866 --- --- Total current assets 120,344 130,771 Property and equipment, net 7,088 7,589 Long term marketable securities 154,493 139,752 Other investments, net 17,580 25,536 Other assets, net 6,484 6,419 Severance pay fund 2,413 2,312 --- --- Total Assets $308,402 $312,379 Liabilities and Stockholders' Equity Current liabilities: Trade payable $9,190 $5,830 Other current liabilities 16,328 17,613 Total current liabilities 25,518 23,443 Long term liabilities: Accrued severance pay 2,444 2,418 Deferred income taxes 3,835 7,541 -- -- Total long term liabilities 6,279 9,959 Stockholders' equity: Common stock 27 27 Additional paid-in capital 155,969 155,969 Less cost of treasury stock (5,962) (8,623) Accumulated other comprehensive income (loss) (3,685) 2,652 Retained earnings 130,256 128,952 Total stockholders' equity 276,605 278,977 --- --- Total liabilities and stockholders' equity $308,402 $312,379 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X24392055
SOURCE DSP Group, Inc.
/CONTACT: Yaniv Arieli, Director of Investor Relations of DSP Group, +1-408-986-4423/