DSP Group Inc. (Nasdaq: DSPG) reported its results for the fourth quarter and for 2013 as a whole today. Annual revenue fell 7.2%, to $151 million.
The guidance for the first quarter of 2014 does not indicate a switch to growth in revenue, after three years of shrinkage.
All the same, the company's shareholders can take comfort in the fact that it has improved its bottom line, switching to a profit of $2.7 million on a GAAP basis last year, compared with a loss of $8 million in 2012.
DSP Group's traditional business is the development of chipsets for cordless telephones, a field that has been in decline in recent years.
The company has tried to offset the decline with a series of more profitable new products for the smart home and the offices market, and it recently completed development of a processor that reduces background noise in mobile telephones.
For the first quarter of 2014, DSP Group sees revenue of $30-35 million, which compares with $39.7 million in the first quarter of 2013.
DSP Group CEO Ofer Elyakim said, "We are optimistic that the investments we have made in Mobile, Enterprise VoIP and Home Automation will begin to bear fruit with growing revenues in these market segments in 2014 and beyond."
Published by Globes [online], Israel business news - www.globes-online.com - on January 30, 2014
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