DSP Group, Inc. Reports First Quarter 2013 Earnings
Financial Highlights:
-
Q1 Revenues, Up 3% Sequentially and Down 9% Year over Year, Were at the
High End of Guidance
-
Company Achieved Milestone Returning to Positive GAAP Operating Income
-
GAAP EPS of
$0.05 and Non-GAAP Diluted EPS of$0.11 Both Above Consensus Expectations
-
Gross Margins of 39.6% Exceeded Guidance and Improved for
Sixth Consecutive Quarter
-
Despite Difficult Environment, EBITDA Increased for
Sixth Consecutive Quarter to$2.6 Million Reaching 7% of Revenues
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Net Cash and Cash Equivalence Balance of Approximately
$120 Million
Mr. Elyakim added, "We shall continue to execute prudently on our business plan, with a focus on enhancing shareholder value and generating positive operating cash flows and EBITDA in 2013. In addition, we expect our non-GAAP financial results for the second quarter to be in line with the results reported for the first quarter and for revenues to be in range of
Product Highlights:
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Successfully Launched HDClearTM for Mobile Devices at
Mobile World Congress in Barcelona. Its Proprietary Noise Cancellation Algorithms and Powerful Acoustic Echo Cancellation Abilities Generating High Level of Interest and Excitement in the Industry.
-
On Track to Deliver Engineering Samples of New DBMD2 Chipset in May and Have Already Begun Evaluations of Technology with Leading OEMs and MNOs.
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Newest VoIP Processor, DVF99, Was Launched in January and Has Already Secured Three Design Wins. Mass Production Ramp Expected in
Fourth Quarter .
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Achieved Three New VoIP Product Launches for ATAs and IP Phones with Various Office Telephony Brands.
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New Enterprise-Grade Wireless Audio Headset Product Launch by a Leading OEM for the Office Environment. The Headset Supports All Major Unified Communications Like Microsoft® Lync™ and Cisco Platforms.
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Evolution of DECT as a Voice Only Wireless Standard into a Control Network Ecosystem for Home and
Building Via New DECT ULE (Ultra Low Energy) Protocols Took Significant Step Forward with Formation ofULE Alliance During First Quarter . Subsequently ETSI Officially Published the Standard Specifications.
Non-GAAP Results:
Non-GAAP net income and diluted earnings per share for the first quarter of 2013 were
Non-GAAP net loss and loss per share for the first quarter of 2012 excluded the impact of amortization of acquired intangible assets in the amount of
The Company believes that the non-GAAP presentation of net income and diluted EPS presented in this press release is useful to investors in comparing results for the quarter ended
Forward Looking Statements
This press release contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including Mr. Elyakim's statements about
About
At the forefront of semiconductor innovation and operational excellence for over two decades,
Earnings Conference Call Details
If you cannot join the call, you may listen to the replay, which will be available for one week after the call on
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| DSP GROUP, INC. | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| (In thousands, except per share amounts) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Unaudited | Unaudited | |
| Revenues | $ 39,650 | $ 43,504 |
| Cost of revenues | 23,944 | 27,526 |
| Gross profit | 15,706 | 15,978 |
| Operating expenses: | ||
| Research and development, net | 9,151 | 11,976 |
| Sales and marketing | 3,051 | 4,034 |
| General and administrative | 2,622 | 3,028 |
| Amortization of intangible assets | 418 | 593 |
| Total operating expenses | 15,242 | 19,631 |
| Operating income (loss) | 464 | (3,653) |
| Other income: | ||
| Financial income, net | 570 | 480 |
| Income (loss) before taxes on income | 1,034 | (3,173) |
| Taxes on income (income tax benefit) | (138) | 89 |
| Net income (loss) | $ 1,172 | $ (3,262) |
|
Net earnings (loss) per share: |
||
| Basic | $ 0.05 | $ (0.14) |
| Diluted | $ 0.05 | $ (0.14) |
| Weighted average number of shares used in per share computations of net income (loss) per share | ||
| Basic | 21,897 | 22,550 |
| Diluted | 22,246 | 22,550 |
| DSP GROUP, INC. | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) | ||
| (In thousands, except per share amounts) | ||
| Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||
| (In thousands, except per share amounts) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Unaudited | Unaudited | |
| GAAP net income (loss) | $ 1,172 | ($3,262) |
| Equity-based compensation expense included in cost of product revenues and other | 63 | 110 |
| Equity-based compensation expense included in research and development | 468 | 771 |
| Equity-based compensation expense included in sales and marketing | 135 | 251 |
| Equity-based compensation expense included in general and administrative | 377 | 354 |
| Amortization of intangible assets | 418 | 593 |
| Amortization of deferred tax liability related to intangible assets acquired with BoneTone acquisition | (97) | -- |
| Non-GAAP net income (loss) | $ 2,536 | $ (1,183) |
| Weighted-average number of common stock used in computation of GAAP diluted net income (loss) per share (in thousands) | 22,246 | 22,550 |
| Weighted-average number of shares related to outstanding options, stock appreciation rights and restricted share units (in thousands) | 373 | -- |
| Weighted-average number of common stock used in computation of non-GAAP diluted net income (loss) per share (in thousands) | 22,619 | 22,550 |
| GAAP Diluted net income (loss) per share | $ 0.05 | $ (0.14) |
| Equity-based compensation expense | 0.05 | 0.06 |
| Amortization of intangible assets | 0.02 | 0.03 |
| Amortization of deferred tax liability related to intangible assets acquired with BoneTone acquisition | (0.01) | -- |
| Non-GAAP diluted net income (loss) per share | $ 0.11 | $ (0.05) |
| DSP GROUP, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In thousands) | ||
|
March 31, 2013 |
December 31, 2012 |
|
| (Unaudited) | (Audited) | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 19,225 | $ 21,684 |
| Restricted deposits | 87 | 121 |
| Marketable securities and short term deposits | 17,727 | 20,201 |
| Trade receivables, net | 24,500 | 20,403 |
| Inventories | 14,081 | 12,916 |
| Other accounts receivable and prepaid expenses | 3,429 | 3,656 |
| Deferred income taxes | 104 | 101 |
| Total current assets | 79,153 | 79,082 |
| Property and equipment, net | 3,508 | 3,706 |
| Long term marketable securities and deposits | 82,872 | 78,333 |
| Severance pay fund | 10,117 | 10,197 |
| Intangible assets, net | 13,236 | 13,656 |
| Long term prepaid expenses and lease deposits | 189 | 208 |
| 106,414 | 102,394 | |
| Total assets | $ 189,075 | $ 185,182 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Trade payables | $ 14,999 | $ 14,027 |
| Other current liabilities | 15,571 | 15,953 |
| Total current liabilities | 30,570 | 29,980 |
| Accrued severance pay | 10,357 | 10,436 |
| Accrued pensions | 949 | 970 |
| Deferred income taxes | 1,473 | 1,569 |
| Total long term liabilities | 12,779 | 12,975 |
|
Stockholders' equity: |
||
| Common stock | 22 | 22 |
| Additional paid-in capital | 347,378 | 346,335 |
| Accumulated other comprehensive income | 1,190 | 988 |
| Less – Cost of treasury stock | (122,985) | (125,724) |
| Accumulated deficit | (79,879) | (79,394) |
| Total stockholders' equity | 145,726 | 142,227 |
| Total liabilities and stockholders' equity | $ 189,075 | $ 185,182 |
CONTACT:Christopher Basta Work: 1-408-240-6844 Cell: 1-631-796-5644 chris.basta@dspg.com
