JERUSALEM May 1 Multimedia chip maker DSP Group
on Thursday reported lower first quarter profit as
excess inventories led to a drop in sales.
DSP said on Thursday it earned 3 cents per diluted share
excluding one-time items in the quarter, compared with 11 cents
a share a year earlier. Revenue fell 17 percent to $32.9
million, the middle of DSP's own forecast of $30-$35 million.
Israel-based DSP, which makes wireless chips for cordless
DECT phones and other consumer telecom products, had also
expected earnings per share of 1 cent ex-items.
"We believe that the excess inventory depletion cycle which
negatively impacted revenues in the first quarter, as originally
expected, is now behind us and we are well positioned for
sequential revenue growth in the second quarter," said Ofer
Elyakim, DSP's chief executive.
(Reporting by Steven Scheer)