DSP Group Posts Higher Q3 Profit

DSP Group DSPG reported higher net profit for the third quarter. The Los Altos, California-based company posted quarterly net income of $773,000, up from$398,000, in the year-ago period. On a per share basis, the company's earnings rose to $0.03 from $0.02. Excluding one-time items, the company earned $0.10 per share. Its revenue surged to $36,715,000 from $35,381,000. However, analysts were expecting earnings of $0.03 per share on revenue of $34.2 million. Gross margins widened to 39.6% from 39.0%. It generated $3.2 million of cash from operating activities in the quarter. The company repurchased 505,000 shares for a total consideration of $4.6 million during the quarter. Ofer Elyakim, CEO of DSP Group, said, "Considering the business opportunities ahead and taking into account our accomplishments and transition made this year, we believe we are well positioned to achieve our 2014 key design and financial milestones, as well as return to revenue growth in both the fourth quarter and the next fiscal year." DSP Group shares fell 0.10% to close at $9.69 on Friday.