DSP Group, Inc. Reports Third Quarter 2012 Earnings
Third Quarter Results:
Revenues for the third quarter of 2012 were
Non-GAAP Results:
Non-GAAP net income and diluted EPS for the third quarter of 2012 were
Presentation on non-GAAP Net Income Calculation
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 meeting the Company's objective of generating positive operating cash flows in 2012. In addition, the events described in these forward-looking statements may not actually arise as a result of various factors, including the timing and ability of the consumer electronics market to recover and the corresponding recovery of
About
At the forefront of semiconductor innovation and operational excellence for over two decades,
For more information, visit www.dspg.com.
The
Earnings conference call
If you cannot join the call, please 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 OPERATIONS | ||||
(In thousands, except per share amounts) | ||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
2012 | 2011 | 2012 | 2011 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Revenues | $ 36,666 | $ 48,373 | $ 124,361 | $ 155,666 |
Cost of revenues | 22,764 | 30,853 | 77,970 | 99,167 |
Gross profit | 13,902 | 17,520 | 46,391 | 56,499 |
Operating expenses: | ||||
Research and development, net | 9,632 | 12,570 | 33,029 | 40,970 |
Sales and marketing | 3,502 | 4,179 | 11,297 | 12,357 |
General and administrative | 2,329 | 3,282 | 8,160 | 9,952 |
Amortization of intangible assets | 592 | 2,197 | 1,778 | 6,591 |
Restructuring expenses (income) | 1,315 | 420 | 2,008 | (170) |
Total operating expenses | 17,370 | 22,648 | 56,272 | 69,700 |
Operating loss | (3,468) | (5,128) | (9,881) | (13,201) |
Financial income, net | 666 | 455 | 1,732 | 1,333 |
Loss before taxes on income |
(2,802) |
(4,673) |
(8,149) |
(11,868) |
Taxes on income (income tax benefit) | (387) | 141 | (247) | (448) |
Net loss | $ (2,415) | $ (4,814) | $ (7,902) | $ (11,420) |
Net loss per share: |
||||
Basic and Diluted | $ (0.11) | $ (0.21) | $ (0.36) | $ (0.49) |
Weighted average number of shares of common stock used in the computation of: | ||||
Basic and Diluted net loss per share | 21,775 | 23,371 | 22,025 | 23,397 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||
(In thousands, except per share amounts) | ||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
2012 | 2011 | 2012 | 2011 | |
Unaudited | Unaudited | Unaudited | Unaudited | |
GAAP net loss | ($2,415) | ($4,814) | ($7,902) | ($11,420) |
Equity-based compensation expense included in cost of revenues and other | 72 | 94 | 277 | 328 |
Equity-based compensation expense included in Research and Development, net | 538 | 635 | 1,995 | 2,241 |
Equity-based compensation expense included in Sales and Marketing | 173 | 231 | 641 | 794 |
Equity-based compensation expense included in General and Administrative | 325 | 391 | 1,139 | 1,700 |
Amortization of intangible assets | 592 | 2,197 | 1,778 | 6,591 |
Reversal of an income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statutes of limitation | (486) | -- | (486) | -- |
Restructuring expenses (income) | 1,315 | 420 | 2,008 | (170) |
Non-GAAP net income (loss) | $ 114 | $ (846) | $ (550) | $ 64 |
GAAP weighted-average number of common stock used in computation of basic and diluted loss per share (in thousands) | 21,775 | 23,371 | 22,025 | 23,397 |
weighted – average number of shares related to outstanding options and SARS (in thousands) | 38 | -- | -- | -- |
weighted-average number of common stock used in computation of Non-GAAP diluted net income and loss per share (in thousands) | 21,813 | 23,371 | 22,025 | 23,397 |
GAAP Diluted net loss per share | ($ 0.11) | ($ 0.21) | ($ 0.36) | ($ 0.49) |
Equity-based compensation expense | 0.05 | 0.06 | 0.19 | 0.22 |
Amortization of intangible assets | 0.03 | 0.09 | 0.08 | 0.28 |
Reversal of an income tax contingency reserve | (0.02) | -- | (0.02) | -- |
Restructuring expenses (income) | 0.06 | 0.02 | 0.09 | (0.01) |
Non-GAAP diluted net income (loss) per share | $ 0.01 | $ (0.04) | $ (0.02) | $ 0.00 |
DSP GROUP, INC. | ||
CONSOLIDATED BALANCE SHEETS | ||
(In thousands) | ||
September 30, 2012 |
December 31, 2011 |
|
(Unaudited) | (Audited) | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 19,169 | $ 18,109 |
Restricted deposits | 121 | 128 |
Marketable securities and short term deposits | 21,037 | 30,626 |
Trade receivables | 23,182 | 25,643 |
Inventories | 14,592 | 16,434 |
Other accounts receivable and prepaid expenses | 4,034 | 5,343 |
Deferred income taxes | 124 | 89 |
Total current assets | 82,259 | 96,372 |
Property and equipment, net | 4,157 | 5,803 |
Long term marketable securities and deposits |
71,728 | 69,046 |
Severance pay fund | 9,837 | 9,974 |
Intangible assets and goodwill, net | 12,616 | 14,395 |
Long term prepaid expenses and lease deposits | 288 | 466 |
94,469 | 93,881 | |
Total assets | $ 180,885 | $ 196,056 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Trade payables | $ 12,087 | $ 17,989 |
Other current liabilities | 15,827 | 18,373 |
Total current liabilities | 27,914 | 36,362 |
Accrued severance pay | 10,213 | 10,278 |
Accrued pensions | 841 | 792 |
Total long term liabilities | 11,054 | 11,070 |
Stockholders' equity: |
||
Common stock | 22 | 23 |
Additional paid-in capital | 345,403 | 341,352 |
Accumulated other comprehensive income (loss) | 922 | (1,756) |
Less – Cost of treasury stock | (125,175) | (122,236) |
Accumulated deficit | (79,255) | (68,759) |
Total stockholders' equity | 141,917 | 148,624 |
Total liabilities and stockholders' equity | $ 180,885 | $ 196,056 |
CONTACT: Orly Garini-Dil 1-408-240-6822 orly.garini@dspg.com