Israel's DSP Group Q4 profit up, revenue drops
JERUSALEM Jan 30 (Reuters) - Multimedia chip maker DSP Group reported higher fourth quarter net profit but slowing demand for cordless telephones sent revenue lower.
DSP said on Thursday it earned 7 cents a diluted share excluding one-time items in the last three months of 2013, compared with 6 cents a share a year earlier. Revenue fell 8 percent to $35.3 million, which was in the middle of DSP's own forecast of $33-$37 million.
Israel-based DSP, which makes wireless chips for cordless DECT phones and other consumer telecom products, had also expected quarterly earnings per share of 3 cents ex-items.
"While the cordless telephony market continues to be in secular decline, we have been carefully managing our cost structure ... and prudently investing in important growth initiatives," said Ofer Elyakim, DSP's chief executive.
He said that in 2014, DSP would focus on enhancing shareholder value and generating positive operating cash flows.
"We are optimistic that the investments we have made in mobile, enterprise VoIP (voice over Internet protocol) and home automation will begin to bear fruit with growing revenues in these market segments in 2014 and beyond," Elyakim said.
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