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DSP Group, Inc. Reports Fourth Quarter 2012 Results
(GlobeNewswire Via Acquire Media NewsEdge) SAN JOSE, Calif., Jan. 30, 2013 (GLOBE NEWSWIRE) -- DSP Group®, Inc. (Nasdaq:DSPG), a leading global provider of wireless chipset solutions for converged communications, announced today its results for the fourth quarter ended December 31, 2012.
Fourth Quarter Results:
Revenues for the fourth quarter of 2012 were $38,428,000, an increase of 1% from revenues of $38,195,000 for the fourth quarter of 2011. Net loss for the fourth quarter of 2012 was $139,000, as compared to net loss of $4,823,000 for the fourth quarter of 2011. Loss per share for the fourth quarter of 2012 was $0.01, as compared to a loss per share of $0.21 for the fourth quarter of 2011.
Year End Results:
Revenues for the year ended December 31, 2012 were $162,790,000, a decrease of 16% over 2011 revenues of $193,861,000. Net loss for 2012 was $8,042,000, compared to a net loss of $16,242,000 for 2011. Loss per share for 2012 was $0.37, compared to a loss per share of $0.70 for 2011.
Non-GAAP Results:
Non-GAAP net income and diluted EPS for the fourth quarter of 2012 were $1,324,000 and $0.06, respectively, as compared to non-GAAP net loss and loss per share of $4,264,000 and $0.19, respectively, for the fourth quarter of 2011. Non-GAAP net income and diluted EPS for the fourth quarter of 2012 excluded the impact of amortization of acquired intangible assets of $531,000 associated with the acquisitions of NXP's CIPT business and BoneTone and equity-based compensation expenses of $932,000. Non-GAAP net loss and loss per share for the fourth quarter of 2011 excluded the impact of amortization of acquired intangible assets of $1,381,000 associated with the acquisition of NXP's CIPT business; equity-based compensation expenses of $1,156,000; other income from remeasurement of our initial investment in an affiliated company of $1,343,000; and a tax benefit of $635,000 resulting from the reversal of an income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statute of limitations.
Non-GAAP net income and diluted EPS for the year ended December 31, 2012 were $775,000 and $0.04, respectively, as compared to non-GAAP net loss and loss per share of $4,200,000 and $0.18, respectively, for the year ended December 31, 2011. Non-GAAP net income and diluted EPS for the year ended December 31, 2012 excluded the impact of amortization of acquired intangible assets of $2,310,000 associated with the CIPT and BoneTone acquisitions; equity-based compensation expenses of $4,985,000; restructuring expenses of $2,008,000 associated with the reorganization of our operations; and a tax benefit of $486,000 resulting from the reversal of income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statute of limitations. Non-GAAP net loss and loss per share for the year ended December 31, 2011 excluded the impact of amortization of acquired intangible assets of $7,972,000 associated with the CIPT acquisition; equity-based compensation expenses of $6,218,000; restructuring income of $170,000 associated with the reorganization of our operations; other income from remeasurement of our initial investment in an affiliated company of $1,343,000; and a tax benefit of $635,000 resulting from the reversal of an income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statute of limitations.
Ofer Elyakim, CEO of DSP Group, stated: "Our financial results for the fourth quarter exceeded our guidance on all fronts and demonstrated a return to operating profitability and solid execution in a challenging macro-economic environment and continued uncertainty in our core DECT market. We ended the quarter with revenues of $38.4 million, exceeding the higher end of our guidance range and slightly above our positive earnings pre-announcement," Mr. Elyakim continued, "We successfully delivered on our objective of generating positive cash flows from operations for 2012, and generated $10 million dollars in cash from operations and approximately $2 million in EBITDA ."
Presentation on non-GAAP Net Income Calculation
The Company believes that the non-GAAP presentation of net income and diluted EPS, as well as net loss and loss per share, presented in this press release is useful to investors in comparing results for the quarter and year ended December 31, 2012 to the same periods in 2011 because the exclusion of the above noted expenses may provide a more meaningful analysis of the Company's core operating results. Further, the Company believes it is useful to investors to understand how the expenses associated with equity-based compensations expenses are reflected on its statements of income.
Forward Looking Statements
This press release contains statements that qualify as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, including Mr. Elyakim's statements about a return to operating profitability. In addition, the events described in these forward-looking statements may not actually arise as a result of various factors, including the timing and ability of the consumer electronics and DECT markets to recover and the corresponding recovery of DSP Group's customers; unexpected delays in the commercial launch of new products; the impact of reductions in lead times and inventory levels by DSP Group customers and their customers; slower than expected change in the nature of residential communications domain; DSP Group's inability to develop and produce new products at competitive costs and in a timely manner or failure of such products to achieve broad market acceptance; DSPG Group's ability to control operating costs; and general market demand for products that incorporate DSP Group's technology in the market. These factors and other factors which may affect future operating results or DSP Group's stock price are discussed under "RISK FACTORS" in the Form 10 K for fiscal 2011 as well as other reports DSP Group has filed with the Securities and Exchange Commission and which are available on DSP Group's Web site (www.dspg.com) under Investor Relations.
About DSP Group
DSP Group®, Inc. (Nasdaq:DSPG) is a leading global provider of wireless chipset solutions for converged communications. Delivering semiconductor system solutions with software and reference designs, DSP Group enables OEMs/ODMs, consumer electronics (CE) manufacturers and service providers to cost-effectively develop new revenue-generating products with fast time to market.
At the forefront of semiconductor innovation and operational excellence for over two decades, DSP Group provides a broad portfolio of wireless chipsets integrating DECT/CAT-iq, DECT ULE, Wi-Fi, PSTN, HDClear™, video and VoIP technologies.
DSP Group enables converged voice, audio, video and data connectivity across diverse mobile, consumer and enterprise products – from mobile devices, connected multimedia screens, and home automation & security to cordless phones, VoIP systems, and home gateways. Leveraging industry-leading experience and expertise, DSP Group partners with CE manufacturers and service providers to shape the future of converged communications at home, office and on the go.
For more information, visit www.dspg.com.
The DSP Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/ pkgid=6171
Earnings conference call
DSP Group has scheduled a conference call for 8:30am ET today to discuss the financial results for the fourth quarter and full year of 2012 and invites you to listen to a live broadcast over the Internet. The broadcast can be accessed by all interested parties through the Investor Relations section (investor message board) of DSP Group's Web site at www.dspg.com or link to: http://www.media-server.com/m/p/bkhpyz33
If you cannot join the call, you may listen to the replay, which will be available for one week after the call on DSP Group's Web site or by calling the following numbers:
--US Dial-In # +1 347 366 9565 (passcode: 7291734#)
--International Dial-In # +44 203 427 0598 (passcode: 7291734#)
DSP GROUP, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
Revenues
$ 38,428
$ 38,195
$ 162,790
$ 193,861
Cost of revenues
23,690
24,567
101,660
123,734
Gross profit
14,738
13,628
61,130
70,127
Operating expenses:
Research and development, net
9,510
12,275
42,539
53,244
Sales and marketing
2,940
4,140
14,237
16,497
General and administrative
2,477
2,968
10,638
12,920
Amortization of intangible assets
531
1,381
2,310
7,972
Restructuring expenses (income)
--
--
2,008
(170)
Total operating expenses
15,458
20,764
71,732
90,463
Operating loss
(720)
(7,136)
(10,602)
(20,336)
Financial income, net
656
551
2,388
1,885
Other income
--
1,343
--
1,343
Loss before taxes on income
(64)
(5,242)
(8,214)
(17,108)
Taxes on income (income tax benefit)
75
(419)
(172)
(866)
Net loss
$ (139)
$ (4,823)
$ (8,042)
$ (16,242)
Net loss per share:
Basic and Diluted
$ (0.01)
$ (0.21)
$ (0.37)
$ (0.70)
Weighted average number of shares of common stock used in the computation of net loss per share:
Basic
21,723
22,796
21,950
23,247
Diluted
21,723
22,796
21,950
23,247
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
Unaudited
Unaudited
Unaudited
UnauditedGAAP net income (loss)
($139)
($4,823)
($8,042)
($16,242)
Equity-based compensation expense included in cost of product revenues and other
53
75
331
402
Equity-based compensation expense included in research and development, net
431
525
2,426
2,766
Equity-based compensation expense included in sales and marketing
137
193
778
987
Equity-based compensation expense included in general and administrative
311
363
1,450
2,063
Amortization of intangible assets
531
1,381
2,310
7,972
Reversal of income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statute of limitations included in tax
--
(635)
(486)
(635)
Restructuring expenses (income)
--
--
2,008
(170)
Other income from remeasurement of investment in affiliated company
--
(1,343)
--
(1,343)Non-GAAP net income (loss)
$ 1,324
$ (4,264)
$ 775
$ (4,200)
GAAP weighted-average number of common stock used in computation of basic and diluted loss per share (in thousands)
21,723
22,796
21,950
23,247
Weighted-average number of shares related to outstanding options and stock appreciation rights (in thousands)
21
--
50
--
Weighted-average number of common stock used in computation of non-GAAP diluted net income per share (in thousands)
21,744
22,796
22,000
23,247
GAAP Diluted net loss per share
$ (0.01)
$ (0.21)
$ (0.37)
$ (0.70)
Equity-based compensation expense
0.04
0.05
0.23
0.27
Amortization of intangible assets
0.03
0.06
0.11
0.35
Reversal of income tax contingency reserve that was determined to be no longer needed due to the expiration of applicable statute of limitations included in tax
--
(0.03)
(0.02)
(0.03)
Restructuring expenses (income)
--
--
0.09
(0.01)
Other income from remeasurement of investment in affiliated company
--
(0.06)
--
(0.06)Non-GAAP diluted net income (loss) per share $ 0.06$ (0.19) $ 0.04 $ (0.18)
DSP GROUP, INC.CONSOLIDATED BALANCE SHEETS (In thousands)
December 31,
December 31,
2012
2011
(Unaudited)
(Audited)Assets
Current assets:
Cash and cash equivalents
$21,684
$18,109
Restricted deposits
121
128
Marketable securities and short term deposits
20,201
30,626
Trade receivables, net
20,403
25,643
Inventories
12,916
16,434
Other accounts receivable and prepaid expenses
3,656
5,343
Deferred income taxes
101
89
Total current assets
79,082
96,372
Property and equipment, net
3,706
5,803
Long term marketable securities
78,333
69,046
Severance pay fund
10,197
9,974
Goodwill and other Intangible assets, net
12,087
14,395
Long term prepaid expenses and lease deposits
208
466
100,825
93,881
Total assets
$ 183,613
$ 196,056
Liabilities and Stockholders' Equity
Current liabilities:
Trade payables
$ 14,027
$ 17,989
Other current liabilities
15,953
18,373
Total current liabilities
29,980
36,362
Accrued severance pay
10,436
10,278
Accrued pensions
970
792
Total long term liabilities
11,406
11,070
Stockholders' equity:
Common stock
22
23
Additional paid-in capital
346,335
341,352
Accumulated other comprehensive income (loss)
988
(1,756)
Less – Cost of treasury stock
(125,724)
(122,236)
Accumulated deficit
(79,394)
(68,759)
Total stockholders' equity
142,227
148,624
Total liabilities and stockholders' equity
$ 183,613
$ 196,056CONTACT: Orly Garini-Dil
DSP Group, Inc.
Tel: +1-408-240-6822
orly.garini@dspg.com
www.dspg.com
Source: DSP Group, Inc.
2013 GlobeNewswire, Inc.
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