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DSP Group Issues "Setting The Record Straight" White Paper On Starboard's May 13, 2013 Presentation

Stocks in this article: DSPG

SAN JOSE, Calif., May 23, 2013 (GLOBE NEWSWIRE) -- DSP Group ®, Inc. (Nasdaq:DSPG), a leading global provider of wireless chipset solutions for converged communications, said today that it has filed the following White Paper with the Securities and Exchange Commission that sets the record straight on a number of factually inaccurate statements and misleading data points in Starboard's May 13, 2013 presentation.

Included below is a text version of the "Setting the Record Straight" White Paper. For a full version please press on the link below: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTg3ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1

We believe that Starboard's presentation filed on May 13, 2013 contained a large number of factually inaccurate statements and misleading data points in its attempt to gain support for its slate of hand-picked nominees to DSP Group's Board.

This White Paper seeks to set the record straight and allow shareholders to reach an independent and informed decision based on the facts.

STARBOARD'S ARGUMENTS FOR CHANGE ARE FALSE AND MISLEADING

Starboard Ignores the Company's Recent Operating Success

Starboard's claims that the Company's operating performance has been "abysmal" are entirely false and ignore our recent operating success.

DSP Group has completed six consecutive quarters of operational improvements, measured across all key metrics. Our latest quarter provided more evidence of our successful turnaround as we exceeded our guidance across almost every financial metric. We also have delivered solid guidance above expectations for the second quarter. The Company achieved a milestone in 2013 by returning to positive GAAP net income.   Our focus remains strong execution to enhance shareholder value. Below are some highlights of our performance during the first three months of the year.

  • GAAP EPS of $0.05 and non-GAAP diluted EPS of $0.11, both above consensus expectations  
  • Gross margins of 39.6% exceeded guidance and improved for the sixth consecutive quarter  
  • Despite a difficult environment, EBITDA increased for the sixth consecutive quarter to $2.6 million, reaching 7% of revenues

Our Promising Growth Potential

Our growth strategy is working although Starboard will not admit to this fact.  A snapshot of our Board's and management's prudent plan for growth is below:

  • Three new product launches have successfully expanded the Company's total addressable market over ten-fold, to greater than 1 billion units.  
  • We are leveraging R&D investments in cordless telephony, our core competence, to drive revenues in new opportunities in cellular and enterprise telephony. This has enabled the company to maintain below average industry R&D spend, without sacrificing revenue growth.  
  • New products, targeted at the growing mobile, enterprise and home automation markets, are gaining traction with significant design wins secured so far this year.

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