* Q4 adj EPS $0.06 vs $0.02 forecast
* Q4 revenue up 1 pct to $38.4 mln
* Sees Q1 revenue $37-$40 mln, adjusted EPS $0.05
JERUSALEM, Jan 30 Multimedia chip provider DSP
Group expects a profit in the first quarter versus a
year-earlier loss after fourth-quarter earnings topped estimates
due to increased demand for wireless telephones.
Israel-based DSP makes wireless chips for cordless DECT
phones and other consumer telecom products. Its voice over
Internet chips are incorporated in four of six new phones sold
by Panasonic for the office market while Germany's Gigaset also
launched a new line of products based on DSP's VoIP chips.
Ofer Elyakim, DSP's chief executive, told a conference call
of analysts on Wednesday that demand rose particularly in
Europe, which had been weak for much of the year. He attributed
the increase to a jump in cordless phones with Bluetooth
connectivity of up to four different mobile devices.
These phones, Elyakim said, allow for higher sound quality
on cellular networks and are suitable for homes without a fixed
phone line. This category grew 65 percent in 2012 and ended the
year with a 10 percent market share in the wireless phone
"Our financial results for the fourth quarter ...
demonstrated a return to operating profitability and solid
execution in a challenging macro-economic environment and
continued uncertainty in our core DECT market," Elyakim said.
Shares of Nasdaq-listed DSP were up 4.5 percent at $6.54 in
DSP earned six cents a share excluding one-time items in the
fourth quarter, compared with a 19 cent loss per share a year
earlier. Revenue gained 1 percent to $38.4 million.
Analysts forecast DSP to have earned 2 cents a share on
revenue of $38.2 million, according to Thomson Reuters I/B/E/S.
The company initially projected revenue of $35-$38 million
but earlier in January DSP said it would exceed that estimate.
It forecast revenue of $37-$40 million for the first quarter
of 2013, below $43.5 million a year earlier. It sees adjusted
EPS of 5 cents versus a 5 cent loss a year ago.
Analysts forecast flat EPS and revenue of $38.2 million in
the first quarter.