DSP Group (DSPG) Tops Q3 EPS by 6c

October 31, 2016 7:05 AM EDT
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DSP Group (NASDAQ: DSPG) reported Q3 EPS of $0.19, $0.06 better than the analyst estimate of $0.13. Revenue for the quarter came in at $38.8 million versus the consensus estimate of $38.49 million.

Commenting on the results, Ofer Elyakim, CEO of DSP Group, stated, "We are very pleased with our third quarter results, in particular our achievement of 10% revenue growth year over year and a solid 340 bps improvement in non-GAAP gross margins to 45% and a 720 bps expansion in non-GAAP operating margins to 11.9%. Moreover, we are similarly delighted that our new products are well received in the marketplace and strongly contributing to our revenue and profit, with Office/VoIP and HDClear posting record results, and new product revenues achieving a record high of $16.6 million, representing an increase of 70% year over year."

Mr. Elyakim added, “Looking forward, we expect to accomplish our 2016 new product goals of reaching $15 million in mobile revenues and growth of approximately 50% in new products, evidencing our successful expansion into new market verticals and diversifying our revenue base with growing revenue streams that enable the company to achieve sustainable growth and higher profitability. While we project a year-over-year revenue growth to continue in the fourth quarter, we expect that our fourth quarter results will be negatively impacted by weakness in our mobile segment.”

For earnings history and earnings-related data on DSP Group (DSPG) click here.

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