UPDATE 1-DSP Group posts Q1 loss, cuts 2008 view; shares fall
May 2nd, 2008 | by admin |(Recasts; adds details, share movement)
May 2 (Reuters) - Israeli chipmaker DSP Group Inc (DSPG.O: Quote, Profile, Research)posted a first-quarter loss and lowered its revenue outlook forthe year on slower demand for its chips used in cordlessphones, sending its shares down 16 percent.
The company, which makes chips used to convert audio datainto digital mode for telephones and computers, posted a netloss of $7.6 million, or 25 cents a share, compared with netincome of $1.4 million, or 5 cents a share, a year earlier.
Revenue rose 48 percent to $72.7 million.
Excluding acquisition costs and stock-based compensationexpense, the company earned 5 cents per share. It had reportedearnings of 19 cents a share, before stock-based compensationexpense, a year earlier.
Analysts on average expected earnings of 5 cents a share,before items, on revenue of $73.1 million, according to ReutersEstimates.
“We expect our traditional cordless market to remainchallenging throughout the year as a result of continuingpricing and volume pressures,” said Chief Executive Eli Ayalon.
The company now expects full year revenue of $300 millionto $320 million, compared with its previous outlook of $325million to $355 million.
The company, which acquired the cordless andvoice-over-Internet protocol terminals businesses ofNetherlands-based NXP Semiconductors [NXP.UL] last year, alsoforecast second-quarter revenue of $70 million to $76 million.
