DSP Group (Nasdaq:DSPG) beat forecasts with record third-quarter revenues of $35 million, compared with revenues of $29 million for the corresponding quarter of 2000 and second-quarter revenues of $26.4 million.
Revenues thus rose 21% year over year and 33% sequentially.
The average analyst had been $30 million.
Net income for Q3 was $6.9 million, and EPS was $0.25 diluted, compared with net income of $8.4 million and EPS $0.29 diluted for the third quarter of 2000. Analysts had expected earnings of 22 cents per share.
"The significant increase of our product sales reflect the success of our new 900 MHz Narrow Band design launched in the second quarter of this year," stated chairman and chief executive Eli Ayalon.
He also noted that during the quarter the company licensed its TeakLite DSP Core to an unnamed U.S. corporation for the development of a cellular 3G product, and said the company had begun to sell a new licensable intellectual property solution for the digital still-camera market.
He added that the U.S. Internal Revenue Service agreed to grant the company tax-free status for its contemplated spinoff of its licensing business.
CFO Moshe Zelnik noted that during the third quarter, DSPG repurchased 40,000 shares of common stock at an average price of $20.30, spending $812,000. DSPG shares are now selling for $22.3, meaning it has so far earned $64,000 on paper.