JERUSALEM, Jan 30 (Reuters) – Multimedia chip maker DSP
Group reported higher fourth quarter net profit but
slowing demand for cordless telephones sent revenue lower.
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.
He 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,” Elyakim said.
