DSP Group Inc. (Nasdaq: DSPG) has announced the start of high volume shipments of its HDClear product for what it describes as "a Tier 1 OEM’s new flagship wearable product." HDClear makes possible precise voice operation of mobile devices, and neutralizes background noise. DSPG has defined the mobile market as one of its new growth engines, and this is the company's first announcement of volume shipments for this market. The product in question is presumed to be one of the market leading smartwatches.
In its third quarter results, DSP Group reported GAAP and non-GAAP diluted EPS of $0.01 and $0.07, respectively, both exceeding guidance, on revenue of $35.2 million, down 4% year-over-year, and in-line with the mid-point of guidance. The company's GAAP net profit was $0.2 million, compared with $0.8 million in the third quarter of 2014. At the end of the third quarter of 2015, the company had cash and cash equivalents of $116.6 million.
DSP Group CEP Ofer Elyakim said, "Our third quarter performance reflects strong contributions from new products, reaching 28% of revenues. We expect these new product initiatives to further expand and account for a higher portion of our future revenue mix. Moreover, during the quarter, we successfully met a major milestone event by commencing high volume shipments of HDClear products into a Tier 1 OEM’s flagship wearable product, which marks a successful entry to the mobile market with Always-On Voice."
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2015
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