JERUSALEM Oct 31 Multimedia chip maker DSP
Group forecast weaker fourth-quarter earnings as it
topped third-quarter estimates despite slowing demand for
Israel-based DSP, which makes wireless chips for cordless
DECT phones and other consumer telecom products, predicts it
will earn 3 cents a share excluding one-time items in the
October-December period on revenue of $33-$37 million.
In the fourth quarter of 2012, it posted a gain of 6 cents a
share and revenue of $38.4 million.
Helped by a cost-cutting programme, DSP reported profit
ex-items of 8 cents a share in the third quarter, versus 1 cent
in the year-earlier period. Revenue slipped 4 percent to $35.4
"Despite softer market demand for cordless telephony
products, we managed to surpass the mid-point of our revenue
projection and exceeded our guidance in almost every financial
metric," said DSP Chief Executive Ofer Elyakim on Thursday.
"We have achieved increasing recognition and acceptance for
our new products and technologies," he said.
The company had previously forecast revenue of $33-$37
million and adjusted earnings per share of 2 cents. Analysts had
predicted quarterly EPS of 1 cent and revenue of $35.20 million,
according to Thomson Reuters I/B/E/S.
Elyakim told a conference call of analysts the company would
benefit in the coming quarters from a new voice recognition chip
that neutralises background noise in mobile phones. Device
makers and mobile operators are looking to improve the quality
and applications for voice, he said.
DSP's Nasdaq-listed shares were up 2.6 percent to $7.50 in