JERUSALEM, July 29 Multimedia chip maker DSP
Group predicted a drop in third-quarter earnings from a
forecast-beating second quarter due to slowing demand for
digital cordless phones.
Israel-based DSP makes wireless chips for cordless DECT
phones and other consumer telecom products. It has secured five
design wins with leading manufacturers for its new voice over
Internet processor and supply is expected later in 2013.
"We continue to focus on generating positive operating
profitability ... and in executing our business plan in a
prudent manner as we expand our reach beyond cordless telephony
products to new product lines and market domains that will bring
new revenue streams to DSP Group in the longer term," chief
executive Ofer Elyakim said on Monday.
DSP said it earned 15 cents a share excluding one-time items
in the second quarter, compared with EPS of 2 cents a year
earlier. Revenue slipped to $40.7 million from $44.2 million.
The company had forecast revenue of $38 million to $41
million and adjusted EPS of about 11 cents. It attributed the
improved profit to efficiency measures in development and
DSP sees third-quarter EPS ex-items of 2 cents a share and
revenue of $33-$37 million.