* Sees Q4 revenue of $38.2 million
* Expects to exceed prior outlook of $35-$38 mln
TEL AVIV Jan 7 (Reuters) - Multimedia chip provider DSP Group expects to exceed the revenue and earnings outlook it previously provided for the fourth quarter.
Israel-based DSP Group said on Monday it expects to report revenue of $38.2 million for the fourth quarter, exceeding the higher end of management's prior forecast issued in November of $35 million to $38 million.
It recorded revenue of $38.2 million in the fourth quarter of 2011.
The company also expects to report positive adjusted operating income for the fourth quarter due to higher revenue and lower operating costs. Previously the company had forecast a small operating loss.
Management expects to meet its objective of generating positive cash flow from operations and earnings before interest, tax, depreciation and amortisation both for the fourth quarter and full year.