July 31, 2014 / 2:30 PM / 3 years ago

UPDATE 1-Israeli chip maker DSP Group Q2 profit tops estimates

(Adds outlook, share reaction)

TEL AVIV, July 31 (Reuters) - 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 executive.

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)

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