DSP Group down on Q2 profit drop
Shares of fabless semiconductor company DSP Group Inc. (Nasdaq: DSPG) are sagging following news of a sharp drop in quarterly profit.
The net income for the second quarter ended June 30 was $2.96 million, or $0.10 per share, 58% lower when compared with a net income of $7.09 million, or $0.23 per share, during the same three months of 2006, the Santa Clara, Calif.-based firm announced before the opening bell.
Two analysts polled by Thomson Financial were looking for earnings of $0.23 per share.
Revenues for the quarter were $52.44 million, down 14% from $60.74 million a year earlier. That’s above Wall Street’s projected revenues of $52 million.
Chairman and CEO Eli Ayalon said that the U.S. market is likely to remain challenging until DSP Group introduces its next wave of multimedia products in 2008.
At 3:34 p.m. ET the stock was down $1.51, or 8%, to $18.50.
