* Q4 EPS $0.07 ex-items vs estimate of $0.06
* Q4 revenue down 8 pct to $35.3 million
* Sees Q1 revenue $30-$35 million, EPS of $0.01
* Shares down 4.1 pct in early Nasdaq trade
JERUSALEM, Jan 30 Multimedia chip maker DSP
Group projected a weaker first quarter after slowing
demand for cordless phones continued to hurt sales in the fourth
DSP said on Thursday it earned 7 cents a diluted share
excluding one-time items in the last three months of 2013,
compared with 6 cents a share a year earlier. Revenue fell 8
percent to $35.3 million, which was in the middle of DSP's own
forecast of $33-$37 million.
Israel-based DSP, which makes wireless chips for cordless
DECT phones and other consumer telecom products, had also
expected quarterly earnings per share of 3 cents ex-items.
"While the cordless telephony market continues to be in
secular decline, we have been carefully managing our cost
structure ... and prudently investing in important growth
initiatives," said Ofer Elyakim, DSP's chief executive.
DSP forecast first quarter revenue of $30 million to $35
million, down from $39.7 million a year earlier, while earnings
per shares are estimated to fall to 1 cent from 11 cents.
Shares of DSP were down 4.1 percent at $9.06 in early Nasdaq
Elyakim said that in 2014, DSP would focus on enhancing
shareholder value and generating positive operating cash flows.
"We are optimistic that the investments we have made in
mobile, enterprise VoIP (voice over Internet protocol) and home
automation will begin to bear fruit with growing revenues in
these market segments in 2014 and beyond," he said.
During the fourth quarter, DSP signed a number of agreements
including one with Panasonic, which launched a line of
VoIP products based on DSP's chips.
In a conference call with analysts, Elyakim said DSP's
noise reduction chip received strong interest from smartphone
makers at the recent Consumer Electronics Show. The chip is in
advanced trials with several manufacturers.
Device manufacturers are working to improve voice quality
through new technologies, a trend DSP is expected to benefit
from in coming quarters, Elyakim said.