SAN JOSE, Calif., June 4, 2013 (GLOBE NEWSWIRE) -- DSP Group®, Inc. (Nasdaq:DSPG) a leading global provider of wireless chipset solutions for converged communications, released today the following letter to its stockholders;
Dear Fellow DSP Group Stockholder:
We are pleased to inform you that with yesterday's announcement from Egan Jones Proxy Services that it is supporting the Company's slate of nominees, ALL three of the independent proxy advisory services – ISS, Glass Lewis and Egan Jones Proxy Services - have now recommended that stockholders vote the Company's GOLD proxy card.Is it just a coincidence that the three proxy advisory firms all recommend that Stockholders REJECT the Starboard nominees and vote for the Company nominees?" The answer is a resounding "NO!" They were not swayed by Starboard's false accusations, misrepresentations and attempts at misdirection, and neither should you be swayed. They based their analyses on the facts. The facts are that Starboard didn't present a plan to grow the Company; their nominees lack the experience and expertise required to successfully compete in our markets and Starboard already has adequate representation on the Board. Your Board urges stockholders to support durable value creation by voting for the Company's entire slate of director nominees at the upcoming June 10, 2013 Annual Meeting of Stockholders. As Glass Lewis stated in its report recommending the election of ALL three Company nominees, " Over the last six quarters, the Company has successfully executed on its turnaround and growth strategy. Currently, we believe the board's plan is more likely to result in greater shareholder value than a potential sale of the Company, which until recently was the Dissident's only strategic suggestion. In light of the latest results, which the board believes will result in greater value than a sale of the Company, we believe shareholders should allow the board the opportunity to continue executing on its strategic plan. " Your Board agrees. The Board also believes the loss of ANY incumbent director in favor of Starboard nominees would jeopardize the operational and financial gains that have been achieved and would result in a weaker and less talented board. Here are some key facts to keep in when making your decision:
- DSP Group's stock is one of the top performing stocks among our peer group and industry year-to-date, over the last 12 months, and since our restructuring efforts began in 2011.
- DSP Group has made significant operational and financial progress over the past 18 months despite difficult industry trends impacting our top line. In the recent quarter the Company achieved a number of significant milestones: the highest Gross Margins in three years, the highest Operating Margins in five years and a return to GAAP profitability.
- DSP Group has a clear growth strategy and is on track to meet its strategic goals.
- DSP Group's Board nominees are diverse and have significant strategic, operational, financial and public board experience in our areas of focus and in the places where our operations are performed.
- He led the governance initiatives and operational improvements implemented by the DSP Group Board in the last 18 months.
- He supported the settlement with Starboard in 2012 and participated in negotiations in connection with this year's meeting. Although the Company was unable to avoid a proxy fight, the terms of the recent settlement proposed by him and the Board offered a more-than-fair proposition to Starboard.
- Prior to joining DSP Group, he held CEO positions and board memberships in various technology companies in the defense, telecom, medical equipment and semiconductor industries, including residing five years in Europe.
- Corporate governance experience through memberships in Board of directors in companies such as; M-Systems acquired by SanDisk, Wintegra, acquired by PMC Sierra and CEVA (Nasdaq:CEVA).
- Under Mr. Ayalon's leadership, DSP Group successfully expanded its IP licensing business and created significant value for stockholders with a shareholder friendly spin-off of CEVA in 2002. Mr. Ayalon recognized that the sum-of-the-parts was greater than the whole and that stockholders would benefit from the separation of the IP business from the semiconductor business, by maintaining ownership in both.
- He is a member of the Board of Governors of the Technion, the leading center for high technology graduate studies in Israel, and a member of the executive committee of the University of Ariel, Israel.
- Mr. Ayalon has been instrumental in attracting and retaining key talent among our R&D engineers, the lifeblood of the Company. As Israel has recently garnered the moniker, "the new Silicon Valley", due to the ever increasing presence of large, global technology companies, Mr. Ayalon importance to the Company in helping attract and retain key talent and establishing working relationship with global technology companies that have a presence in Israel cannot be overstated.
- He is a General Partner at Magma Venture Partners, a leading Israeli investment firm that focuses on early stage communication, semiconductor, Internet and media companies.
- He also has been a General Partner of Rimon Investment Fund, a consulting and investment advisory firm.
- He has been an active investor in public and private technology companies in Israel and abroad since 1990 and has led the successful turnarounds of industrial and service companies.
- He has years of experience in strategy and management consulting from his tenure as a founding member and partner of Shaldor, a top ranked strategic advisory firm in Israel and as a consultant at Bain & Company.
- He has served as a board member of a number of high-tech companies including GVT, a leading Brazilian broadband operator, which was subsequently sold to Vivendi in 2009 for $4.2 billion; and Trivnet, a leading player in mobile financial services acquired in 2010 by Gemalto.
- As a General Partner of Magma Venture Partners and as a Board Member, he has been actively involved in several semiconductor companies including: (1) Wintegra, a leading fabless semiconductor company specializing in network processors optimized for mobile backhaul equipment which was acquired by PMC-Sierra in 2010 for $240 million; (2) Provigent, a fabless semiconductor company that develops system-on-a-chip (SoC) solutions for the broadband wireless transmission, which was acquired by Broadcom in 2011 for $360 million; and (3) DesignArt Networks, a leader in small cell modem and system design for cellular base stations and high-speed wireless backhaul infrastructure, which was acquired in 2012 by Qualcomm for $150 million.
- Currently a member of the board of directors of CEVA (Nasdaq:CEVA), Autotalks, and other private technology companies.