This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

DSP Group Sets The Record Straight Again In Response To Starboard's Latest Letter

Starboard's Latest Letter Clearly Demonstrates a Lack of Understanding of Our Business; Do Not Let Starboard Distract You From the Facts

Vote the Gold Proxy Card Today

SAN JOSE, Calif., May 29, 2013 (GLOBE NEWSWIRE) -- DSP Group ®, Inc. (Nasdaq:DSPG), a leading global provider of wireless chipset solutions for converged communications, said today that Starboard's latest letter is another clear example of the activist hedge fund's use of misinformation to confuse and deceive stockholders. What's more, Starboard's letter demonstrates a clear lack of understanding of our business.

Do Not Let Starboard Distract You from the Facts

The facts are clear — don't be distracted by Starboard's misleading statements:
  • DSP Group's stock is one of the top performing stocks in our industry over the last 12 months and year-to-date  
  • DSP Group has completed six consecutive quarters of operational improvements measured across all key metrics, including a return to GAAP operating profitability  
  • DSP Group has a clear, concise growth strategy and is on track to meet its strategic goals  
  • DSP Group Board nominees are diverse and have significant strategic, operational, financial and public board experience in our areas of focus and in the places where the Company operates

Do Not Confuse Our System-on-Chip ("SoC") Peer Group and the Competitors Listed in Our Filings

It is astonishing that Starboard, which is seeking majority representation on our Board, does not understand the difference between our "fabless" System-on-Chip ("SoC") peers and the competitors listed in our SEC filings.  Potential competitors listed in our filings may have a product or a line of business that compete with one of our own. That does not, however, mean that a comparison of their R&D spending to DSP Group's is meaningful. 

DSP Group is indeed one of the several publicly traded fabless SoC providers. Like DSP Group, a typical fabless SoC company spends a significant share, if not a majority, of its R&D expenditure on software development. Non-SoC vendors, on the other hand, tend to have an R&D expenditure profile that is heavily skewed towards hardware.  The vast majority of the competitors listed in our annual and quarterly filings do not fit the fabless SoC definition, as they spend the vast majority of their R&D expenditure on hardware.  The seven SoC peers we listed in our presentation, including Broadcom and Marvell, are a true peer group of fabless SoC companies that spend the majority of their R&D on software, as we do.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,313.57 +255.22 1.59%
S&P 500 1,937.79 +23.94 1.25%
NASDAQ 4,717.8620 +81.7570 1.76%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs