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)