Wireless chipset company DSP Group Inc. (Nasdaq: DSPG ) has reported third quarter 2016 revenue of $38.8 million, 10% above the revenue of $35.2 million for the third quarter of 2015. The company posted a net profit for the third quarter of 2016 of $5.3 million, which compares with $0.2 million for the third quarter of 2015. Basic and diluted earnings per share for the third quarter of 2016 were $0.24 and $0.23, which compares with basic and diluted earnings per share of $0.01 for the third quarter of 2015.
On a non-GAAP basis, net profit and diluted earnings per share for the third quarter of 2016 were $4.5 million and $0.19, respectively, compared with $1.7 million and $0.07 for the third quarter of 2015. The average analysts' estimate was for earnings per share of $0.13 in the third quarter of 2016.
For the fourth quarter, DSPG sees revenue of $34-36 million, compared with $33.8 million in the fourth quarter of 2015, and earnings per share of $0.09-0.11, compared with $0.07 in the corresponding quarter.
DSPG CEO Ofer Elyakim said, "We are very pleased with our third quarter results, in particular our achievement of 10% revenue growth year over year and a solid 340 bps improvement in non-GAAP gross margins to 45% and a 720 bps expansion in non-GAAP operating margins to 11.9%. Moreover, we are similarly delighted that our new products are well received in the marketplace and strongly contributing to our revenue and profit, with Office/VoIP and HDClear posting record results, and new product revenues achieving a record high of $16.6 million, representing an increase of 70% year over year.
“Looking forward, we expect to accomplish our 2016 new product goals of reaching $15 million in mobile revenues and growth of approximately 50% in new products, evidencing our successful expansion into new market verticals and diversifying our revenue base with growing revenue streams that enable the company to achieve sustainable growth and higher profitability. While we project a year-over-year revenue growth to continue in the fourth quarter, we expect that our fourth quarter results will be negatively impacted by weakness in our mobile segment.”
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2016
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