DSP Group reports Q1 profit vs loss, tops estimates
* Q1 non-GAAP EPS $0.11 vs $0.05 forecast
* Sees Q2 non-GAAP EPS $0.11 vs $0.06 estimated
* Sees Q2 revenue $38-$41 million
TEL AVIV, April 29 (Reuters) - Multimedia chip provider DSP Group posted better-than-expected first quarter profit and forecast revenue of up to $41 million in the second quarter.
Israel-based DSP makes wireless chips for cordless DECT phones and other consumer telecom products. It has secured three design wins for its new voice over Internet processor for the office market launched in January and supply of these chips is expected in the fourth quarter.
The company launched in February its HD Clear noise reduction chip, its first chip designed for mobile phones. DSP is in talks with leading mobile phone manufacturers and operators and will supply first samples of the chip in May.
DSP posted on Monday earnings of 11 cents a share excluding one-time items in the first quarter, compared with a 5 cent loss per share a year earlier. Revenue fell 9 percent to $39.7 million.
The company attributed the improved profit to efficiency measures in development and production.
Analysts had forecast DSP would earn 5 cents a share on revenue of $38.7 million, according to Thomson Reuters I/B/E/S. DSP had forecast revenue of $37-$40 million in the first quarter and adjusted EPS of 5 cents.
"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 (earnings before interest, tax, depreciation and amortisation) in 2013," Chief Executive Ofer Elyakim said.
The company expects adjusted earnings per share of about 11 cents in the second quarter and for revenue to be in a range of $38 million to $41 million.
Analysts forecast EPS of 6 cents and revenue of $39.8 million in the second quarter.