* Q1 loss per share $0.05 vs estimate of $0.12 loss
* Q1 revenue fell 11 pct to $43.5 mln vs $43.2 mln estimate
* Sees Q2 loss/shr $0.05, revenue $41-$47 mln
* Shares down 5.9 pct in early Nasdaq trade
TEL AVIV, April 30 (Reuters) – Multimedia chip provider DSP
Group Inc forecast a below-estimate second quarter
after it reported a smaller-than-expected loss in the first
three months, sending its shares lower.
In a conference call on Monday, DSP said sales of consumer
products in Europe, including cordless phones, are expected to
be weak.
But the company predicted revenue in the second half of the
year would be higher than in the first half, and it expects to
post positive operating cash flow for the full year.
The Israel-based maker of wireless chips for cordless DECT
phones and other consumer telecom products estimated a loss per
share of 5 cents in the second quarter and revenue of $41
million to $47 million.
DSP is forecast to post a loss of 2 cents a share on revenue
of $49.4 million, according to Thomson Reuters I/B/E/S.
DSP’s shares were down 5.9 percent to $6.35 in early Nasdaq
trade.
In the first quarter DSP posted a 5 cent loss per share
excluding one-off items, unchanged from a year earlier. Revenue
fell 11 percent to $43.5 million.
DSP was forecast to post a loss of 12 cents a share on
revenue of $43.2 million. The company said in February it
expected first quarter revenue of $41 million to $45 million and
a 9 cent loss per share.
“Our first quarter results were better than previously
expected, driven by record VoIP (voice over Internet protocol)
revenues, higher gross margins and lower operating expenses,”
Chief Executive Ofer Elyakim said.
The voice over Internet chips, aimed at offices, are
incorporated in four of six new phones sold by Panasonic for the
office market while Germany’s Gigaset also launched a new line
of products based on DSP’s VoIP chips.
“We remain focused on meeting our objective to generate
positive operating cash flows this year and shall continue to
closely monitor market trends and implement additional cost
cutting measures whenever necessary,” Elyakim said.
Operating expenses in the quarter fell 10 percent to 17.7
million.
