(Adds outlook, share reaction)
TEL AVIV, July 31 Multimedia chip designer DSP
Group on Thursday reported lower second-quarter net
profit that exceeded expectations on record sales of products
for the office market.
DSP earned 12 cents per diluted share excluding one-time
items in the quarter, compared with 15 cents a share a year
earlier. Revenue fell to $36.3 million from $40.7 million, above
the middle of DSP's own forecast.
Analysts were forecasting EPS excluding items of 6 cents on
revenue of $36 million, according to Thomson Reuters I/B/E/S.
Israel-based DSP, which makes wireless chips for cordless
DECT phones and other consumer telecom products, had also
expected earnings per share of 5-6 cents ex-items.
"Our office/voice over Internet protocol products achieved
record revenues and the major design wins we secured this year
give us high confidence that the growth in this and other
segments will continue," said Ofer Elyakim, DSP's chief
For the third quarter, DSP projects revenue of $34-$37
million, versus $35.4 million in the same quarter in 2013. It
also expects adjusted earnings per share of 3-4 cents, down from
8 cents last year.
Analysts forecast EPS of 1 cent on revenue of $33.4 million.
DSP's Nasdaq-listed shares were 3.4 percent higher at $8.72
in morning trade.
(Reporting by Tova Cohen and Steven Scheer)