DSP Group signs Deutsche Telekom deal worth $90m

Ofer Elyakim  photo: Tamar Matsafi
Ofer Elyakim photo: Tamar Matsafi

DSP Group's chips will be included in the German company's smart speakers.

DSP Group Inc.'s (Nasdaq: DSPG) chips will be included in products made by Deutsche Telekom. Revenue from the deal is estimated at $90 million over five years.

DSP Group develops chips for various wireless phones and media products. In the Deutsche Telekom deal, DSPG's DECT/ULE chips will be installed in the German company's smart speakers in order to accommodate touchless voice calls.

"DSP Group is committed to ensuring that voice will be the focus of communications in the smart home, that the quality will be matchless, and that reliability will exceed consumer expectations," said DSP Group CEO Ofer Elyakim. "DECT and ULE technologies are the only ones in the market designed especially for voice apps. DSP Group has worked for 20 years to perfect the system on a chip (SoC) solution in order to offer a better user experience and enable communications providers to present innovative smart home products and exciting apps without any concern about voice quality, latency in data transmission, reliability, and so forth."

Deutsche Telekom sales manager Bernd Moller said, "As a communications company, telephony is one of our core services. With the ability to leverage DSP Group's HD Voice on our smart speaker in order to create high-quality voice in calls, the DECT gives us a competitive solution."

Cooperation on Samsung's tablet, too

"Globes" recently reported that DSP Group had also signed a strategic cooperation agreement with Samsung, and its technology would be integrated in Samsung' recently launched tablet. The deal is believed to be worth tens of millions of dollars for DSP Group.

DSP Group's market cap is $254 million. Following the fading of its regular wireless phone chip market in recent years, DSPG expanded its business into new areas, such as Internet of Things (IoT) and the smart home, as well as the use of voice as a user interface.

DSP Group is scheduled to publish its third quarter results on December 1. Analysts are predicting a $0.08 non-GAAP profit per share on $33 million in revenue.

Published by Globes, Israel business news - en.globes.co.il - on October 23, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Ofer Elyakim  photo: Tamar Matsafi
Ofer Elyakim photo: Tamar Matsafi
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