Chip-set developer DSP's Ayalon leaves CEO post

DSP Group narrowed its losses even as revenue fell.

Communications chip-set developer DSP Group Inc. (Nasdaq: DSPG) chairman and CEO Eli Ayalon has announced that he is leaving the position of CEO. He will stay on as executive chairman of the company. SVP and president Southeast Asia Ofer Elyakim will reportedly take over as CEO.

Elyakim, 39, joined DSP from Oppenheimer & Son investment house three and a half years ago. He initially served as VP business development, and was subsequently appointed president of the company's Southeast Asia operations following the acquisition of the cordless and VoIP terminals businesses (CIPT) business from NXP Semiconductors NV for $220 million.

DSP published its financial report for the second quarter of 2009 on Thursday evening. The company narrowed its losses even as revenue fell.

DSP posted $52 million revenue for the second quarter, 30% less than the $74.1 million for the corresponding quarter of 2008. The company narrowed its GAAP-based net loss to $1.7 million ($0.07 per share) for the second quarter from $7.4 million for the corresponding quarter.

Non-GAAP net profit fell 30% to $718,000 ($0.03 per share) for the second quarter from $1 million for the corresponding quarter. The non-GAAP results exclude $3 million for amortization of intangible assets from the acquisition of NXP's CIPT business, and other items. The company beat the analysts' consensus of a loss of $2.5 million for the quarter.

Ayalon said, "We exceeded our financial objectives for the second quarter of 2009." He added, "We are cautiously optimistic and anticipate further improvements in our business for the third quarter of 2009."

DSP expects to post a non-GAAP net profit of $2.2 million on $61-67 million for the third quarter.

DSP's share rose 15.5% after the publication of the financials on Thursday, and a further 4.1% on Friday to $9.35.

Published by Globes [online], Israel business news - - on July 26, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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