Growth Initiatives Account for 63% of Quarterly Revenues
Record Quarterly GAAP Gross Margin of 51.1%
First Quarter Business and Financial Highlights:
- Total revenues of
$28.3 million, a year-over-year increase of 1%
- Revenues of
$17.7 millionfrom growth initiatives accounted for 63% of total revenues, a year-over-year increase of 26%: Unified Communicationsrevenues of $9.4 million, a year-over-year increase of 13%.
- SmartVoice revenues of
$4.1 million, a year-over-year increase of 162%.
- SmartHome revenues of
$4.2 million, a year-over-year increase of 2%.
- Cordless revenues of
$10.6 million, a year-over-year decrease of 25%.
- Revenues of
- GAAP and non-GAAP gross margins of 51.1% and 51.5%, respectively, compared to GAAP and non-GAAP gross margin of 48.8% and 49.1%, respectively, for the first quarter of 2018.
- GAAP operating loss of
$1.6 millionand non-GAAP operating income of $0.4 million, compared to GAAP operating loss of $2.4and non-GAAP operating loss of $0.2 millionfor the first quarter of 2018.
- GAAP net loss of
$1.1 millionand non-GAAP net income of $1.2 million, compared to GAAP net loss of $1.8 millionand non-GAAP net income of $0.2 millionfor the first quarter of 2018.
- GAAP loss per share of
$0.05and non-GAAP diluted earnings per share of $0.05, compared to GAAP loss per share of $0.08and non-GAAP diluted earnings per share of $0.01for the first quarter of 2018.
$3.5 millionof cash for operating activities, compared to $3.4 millionused during the first quarter of 2018.
- Cash, deposits and marketable securities of approximately
$120.1 millionas of March 31, 2019.
- Expanding our position in the unified communications market, as demonstrated by the following design wins:
- A new tier 1 OEM selected our DVF101 SoC for its high-end conferencing system.
- NEC, a leading Japanese networking OEM, launched a SIP phone based on our DVF97 SoC.
- Enhancing our engagement pipeline and design wins for voice user interface with leading consumer electronics OEMs, thereby driving growth of a burgeoning new market:
- Oppo, a leading mobile OEM, launched its new Reno smartphone together with Breeno voice assistant based on our SmartVoice technology.
- A tier 1 OEM selected our SmartVoice solution for its high-end TV’s smart remote control that integrates always-on voice.
Arlo, America's leading connected camera brand, launched its Ultra 4K camera with our SmartVoice technology.
- A leading Chinese OEM launched a new education tablet product based on our SmartVoice solution.
- Growing our ULE ecosystem with leading global IoT vendors that recognize ULE’s unmatched characteristics for wireless indoor IoT including superior range, interference-free spectrum and natural support for two-way voice:
- Network Thermostat, a leading U.S. connected thermostat company, selected our ULE technology for its next-generation of smart thermostats.
- Snips selected ULE technology to bring multi-room embedded voice recognition architecture for smart home and smart building verticals.
Gigasetlaunched a smart speaker offering and integrated our DECT/ULE solution for HD two-way voice.
Commenting on the results,
Mr. Elyakim continued, “Looking ahead to the second quarter of 2019, we project a sequential increase in revenues, with record demand for SmartVoice products offset by near term softness in our
First Quarter GAAP Results:
Revenues for the first quarter of 2019 were
First Quarter Non-GAAP Results:
Non-GAAP net income and diluted earnings per share for the first quarter of 2019 were
Non-GAAP net income and diluted earnings per share for the first quarter of 2018 excluded the impact of amortization of acquired intangible assets of
Earnings Conference Call Details
+1 866 966 1396 (domestic US) or +1 631 510 7495 (international) approximately 10 minutes prior to the starting time. The password is 3986834.
The broadcast via the Internet can be accessed by all interested parties through the Investor Relations section of DSP Group’s website at www.dspg.com or link to: https://edge.media-server.com/m6/p/k9f49nbs.
A replay of the conference call will be available for a week following the call. To listen to the session, please dial +1 917 677 7532, domestically or +44 33 3300 9785, internationally and enter the company access code: 3986834.
Presentation of Non-GAAP Net Income and EPS
The Company believes that the non-GAAP presentation of net income and diluted earnings per share presented in this press release is useful to investors in comparing results for the first 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 that (i) a sequential increase in revenues for the second quarter of 2019 resulting from a demand pick up for SmartVoice products is anticipated, (ii) a short term softness in the company’s
Tali Chen, Chief Marketing Officer, Tali.Chen@dspg.com
|DSP GROUP, INC.|
|CONSOLIDATED STATEMENTS OF INCOME|
|(In thousands, except per share amounts)|
|Three Months Ended March 31
|Cost of revenues||13,820||14,397|
|Research and development, net||8,922||8,998|
|Sales and marketing||4,483||4,068|
|General and administrative||2,555||2,581|
|Amortization of intangible assets||104||425|
|Total operating expenses||16,064||16,072|
|Financial income, net||313||396|
|Loss before taxes on income||(1,295||)||(1,962||)|
|Income tax benefit||229||209|
|Net loss per share:|
|Weighted average number of shares used in per share computations of loss per share:|
|Three Months Ended|
|GAAP net loss||$||(1,066||)||$||(1,753||)|
|Equity-based compensation expense included in cost of revenues||115||98|
|Equity-based compensation expense included in research and development, net||750||652|
|Equity-based compensation expense included in sales and marketing||402||406|
|Equity-based compensation expense included in general and administrative||638||543|
|Amortization of intangible assets||104||425|
|Exchange rates differences resulting from the new lease accounting standard (ASC 842)||307||-|
|Changes of deferred taxes related to intangible assets and equity-based compensation expense||(81||)||(197||)|
|Non-GAAP net income||$||1,169||$||174|
|Weighted-average number of common stock used in computation of GAAP diluted net earnings (loss) per share (in thousands)||22,542||22,678|
|Weighted-average number of shares related to outstanding options, stock appreciation rights and restricted stock units (in thousands)||1,394||1,359|
|Weighted-average number of common stock used in computation of non-GAAP diluted net earnings per share (in thousands)||23,936||24,037|
|GAAP diluted net loss per share||$||(0.05||)||$||(0.08||)|
|Equity-based compensation expense||0.08||0.08|
|Amortization of intangible assets||0.01||0.02|
|Exchange rates differences resulting from the new lease accounting standard (ASC 842)||0.01||-|
|Changes of deferred taxes related to intangible assets and equity-based compensation expense||-||(0.01||)|
|Non-GAAP diluted net earnings per share||$||0.05||$||0.01|
|DSP GROUP, INC.|
|CONSOLIDATED BALANCE SHEETS|
|March 31,||December 31,|
|Cash and cash equivalents
|Marketable securities and short term deposits||31,141||35,713|
|Trade receivables, net||15,636||13,475|
|Other accounts receivable and prepaid expenses||3,872||3,670|
|Total current assets
|Property and equipment, net||5,105||2,748|
|Long term marketable securities and deposits||76,473||75,538|
|Severance pay fund||14,800||14,158|
|Deferred income taxes||4,090||3,580|
|Intangible assets, net||7,217||7,321|
|Long term prepaid expenses and lease deposits||1,306||1,229|
|Liabilities and Stockholders’ Equity|
|Other current liabilities||11,505||13,120|
|Total current liabilities||21,566||22,699|
|Accrued severance pay||15,028||14,348|
|Deferred income taxes||142||151|
|Total long term liabilities||26,379||15,326|
|Additional paid-in capital||380,777||378,855|
|Accumulated other comprehensive loss||(1,525||)||(2,324||)|
|Less – Cost of treasury stock||(117,968||)||(122,325||)|
|Total stockholders’ equity||145,413||141,865|
|Total liabilities and stockholders’ equity||$||193,358||$||179,890|
A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/19567818-4ac2-415b-84b5-07dfc94c1303