Record IoAT Revenues of 24.8M, Up 35% YoY; Reaching 69% of Total Revenues
Record non-GAAP Gross Margins of 54.1%
Second Quarter Revenues of
Second Quarter Financial Highlights (and Comparisons to Second Quarter of 2020):
Revenue breakdown (USD in millions)
Q2 2021 | Q2 2020 | vs. Q2 2020 | ||||||
IoAT Revenues: | ||||||||
SmartVoice | up 82% | |||||||
SmartHome | up 33% | |||||||
up 16% | ||||||||
Total IoAT Revenues | $24.76 | $18.40 | up 35% | |||||
Cordless Revenues | $11.05 | $9.94 | up 11% | |||||
Total Revenues | $35.81 | $28.34 | up 26% | |||||
- GAAP and non-GAAP gross margin of 53.4% and 54.1%, respectively, a 330 and 310 basis point increase, respectively.
- GAAP loss per share of
$0.02 and non-GAAP diluted earnings per share of$0.12 , compared to GAAP loss per share of$0.05 and non-GAAP diluted earnings per share of$0.06 for the second quarter of 2020. - GAAP operating loss of
$0.4 million and non-GAAP operating income of$3.3 million , compared to GAAP operating loss of$1.4 million and non-GAAP operating income of$1.0 million for the second quarter of 2020. - GAAP net loss of
$0.4 million and non-GAAP net income of$3.2 million , compared to GAAP net loss of$1.1 million and non-GAAP net income of$1.6 million for the second quarter of 2020. - Generated
$6.8 million of cash from operations, compared to$8.0 million of cash generated from operations in the second quarter of 2020. - Repurchased approximately 339,000 shares of common stock for a total consideration of
$5.3 million . - Cash, deposits and marketable securities of approximately
$129.9 million as ofJune 30, 2021 .
Management Comments:
Commenting on the results,
Second Quarter Business Highlights:
- Grew and strengthened our SmartVoice franchise with design wins and product launches for edge AI applications with leading consumer electronics OEMs, thereby driving dynamic growth in a burgeoning market. Wins include:
- A leading
U.S. platform company selected our SmartVoice products for two new product lines - A leading consumer brand launched an innovative wearable device based on our SmartVoice solution
- Cuco chose our SmartVoice solution to enable voice control in its latest Smart Switch product
- A leading
- Grew and diversified our SmartHome ecosystem with leading global IoT vendors that recognize ULE’s unmatched characteristics for wireless IoT, including superior range, ease of deployment, low power, use of interference-free spectrum and native support for two-way voice. Wins include:
- A tier 1 security service provider launched an expanded product offering based on our ULE technology
- A European telecommunication service provider launched a new broadband gateway model incorporating our DECT/ULE technology
- A new cloud services offering by Cloud of Things included a hub based on our DECT/ULE technology
- Solidified our leadership position and expanded our market share in the
Unified Communications market, as demonstrated by the following achievements:- Our WFA conferencing offering passed Microsoft Teams labs compliancy requirements for voice conferencing
- A tier 1 unified communications OEM chose one of our multi core DSPs for its newly launched WFH device
- Sangoma launched a line of new IP phones based on our DVF system-on-chip (SoC) platform
Second Quarter Non-GAAP Results:
Non-GAAP net income and diluted earnings per share for the second quarter of 2021 were
Earnings Conference Call Details
Investors may access the conference call by dialing + 18778709135 (domestic US) or +44 2071 928338 (international) approximately 10 minutes prior to the starting time. The password is 1974048.
The broadcast via the Internet can be accessed by interested parties through the Investor Relations section of DSP Group’s website at www.dspg.com or link to: https://edge.media-server.com/mmc/p/moibqavw
A replay of the conference call will be available for a week following the call. To listen to the session, please dial 1 (917) 677-7532, domestically or +44 (0) 3333009785, internationally and enter the company access code: 1974048
Presentation of Non-GAAP Net Income and EPS
The Company believes that the non-GAAP presentation of net income (loss) and diluted earnings per share presented in this press release is useful to investors in comparing results for the second quarter and six months ended
Forward Looking Statements
This press release contains statements that qualify as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995, including Mr. Elyakim’s statements about (i) solid momentum to drive revenue growth both sequentially and year over year, (ii) markets shifting favorably in DSP Group’s direction which is driving record demand for its core expertise across all IoAT businesses, (iii) favorable trends, which will result in increasing reliance on voice-centric products coupled with DSP Group’s technology offering, uniquely position
About
Contact:
Vice President of
+1 +(650) 521 4082
claus.stetter@dspg.com
An infographic PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/b15d7ab8-3527-4dd7-8b49-ce41c50116f0
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Revenues | $ | 35,807 | $ | 28,336 | $ | 68,454 | $ | 56,575 | |||||||
Cost of revenues | 16,676 | 14,075 | 32,342 | 27,933 | |||||||||||
Gross profit | 19,131 | 14,261 | 36,112 | 28,642 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development, net | 10,630 | 8,455 | 21,110 | 18,809 | |||||||||||
Sales and marketing | 5,326 | 4,435 | 10,528 | 9,446 | |||||||||||
General and administrative | 3,161 | 2,627 | 5,814 | 4,975 | |||||||||||
Amortization of intangible assets | 429 | 104 | 848 | 208 | |||||||||||
Total operating expenses | 19,546 | 15,621 | 38,300 | 33,438 | |||||||||||
Operating loss | (415 | ) | (1,360 | ) | (2,188 | ) | (4,796 | ) | |||||||
Financial income, net | 94 | 289 | 735 | 1,192 | |||||||||||
Loss before taxes on income | (321 | ) | (1,071 | ) | (1,453 | ) | (3,604 | ) | |||||||
Income tax expenses (benefit) | 78 | 6 | 289 | (62 | ) | ||||||||||
Net loss | $ | (399 | ) | $ | (1,077 | ) | $ | (1,742 | ) | $ | (3,542 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.15 | ) | |||
Weighted average number of shares used in per share computations of loss per share: | |||||||||||||||
Basic and diluted | 24,204 | 23,301 | 24,131 | 23,321 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
GAAP net loss | $ | (399 | ) | $ | (1,077 | ) | $ | (1,742 | ) | $ | (3,542 | ) | ||||
Equity-based compensation expense included in cost of revenues | 185 | 129 | 346 | 249 | ||||||||||||
Equity-based compensation expense included in research and development, net | 1,305 | 826 | 2,447 | 1,577 | ||||||||||||
Equity-based compensation expense included in sales and marketing | 745 | 620 | 1,371 | 1,175 | ||||||||||||
Equity-based compensation expense included in general and administrative | 770 | 706 | 1,371 | 1,112 | ||||||||||||
Amortization of intangible assets | 429 | 104 | 848 | 208 | ||||||||||||
Amortization of employee’s retention expenses related to the acquisition of SoundChip included in cost of revenues | 67 | - | 134 | - | ||||||||||||
Amortization of employee’s retention expenses related to the acquisition of SoundChip included in sales and marketing | 149 | - | 298 | - | ||||||||||||
Amortization of employee’s retention expenses related to the acquisition of SoundChip included in research and development, net | 34 | - | 68 | - | ||||||||||||
Non-cash expenses (income) from exchange rates differences resulting from the lease accounting standard (ASC 842) | 177 | 255 | (271 | ) | (161 | ) | ||||||||||
Expenses (income) from changes of deferred taxes related to intangible assets and equity-based compensation expense | (256 | ) | 50 | (399 | ) | (16 | ) | |||||||||
Non-GAAP net income | $ | 3,206 | $ | 1,613 | $ | 4,471 | $ | 602 | ||||||||
Weighted-average number of common stock used in computation of GAAP diluted net loss per share (in thousands) | 24,204 | 23,301 | 24,131 | 23,321 | ||||||||||||
Weighted-average number of shares related to outstanding options, stock appreciation rights and restricted share units (in thousands) | 1,585 | 1,663 | 1,509 | 1,572 | ||||||||||||
Weighted-average number of common stock used in computation of non-GAAP diluted net earnings per share (in thousands) | 25,789 | 24,964 | 25,640 | 24,893 | ||||||||||||
GAAP diluted net loss per share | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.15 | ) | ||||
Equity-based compensation expense | 0.12 | 0.09 | 0.22 | 0.17 | ||||||||||||
Amortization of intangible assets | 0.01 | 0.01 | 0.03 | 0.01 | ||||||||||||
Amortization of employee’s retention expenses related to the acquisition of SoundChip | 0.01 | - | 0.02 | - | ||||||||||||
Non-cash expenses (income) from Exchange rates differences resulting from the lease accounting standard (ASC 842) | 0.01 | 0.01 | (0.01 | ) | (0.01 | ) | ||||||||||
Income from changes of deferred taxes related to intangible assets and equity-based compensation expense | (0.01 | ) | - | (0.02 | ) | - | ||||||||||
Non-GAAP diluted net earnings per share | $ | 0.12 | $ | 0.06 | $ | 0.17 | $ | 0.02 |
CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
2021 | 2020 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents Restricted deposits | $ | 16,175 574 | $ | 16,936 548 | |||
Marketable securities and short-term deposits | 48,681 | 50,615 | |||||
Trade receivables, net | 13,502 | 11,003 | |||||
Inventories | 6,384 | 9,061 | |||||
Other accounts receivable and prepaid expenses | 5,111 | 3,460 | |||||
Total current assets | 90,427 | 91,623 | |||||
Property and equipment, net | 6,501 | 6,574 | |||||
Long term marketable securities and deposits | 64,507 | 60,454 | |||||
Severance pay fund | 15,331 | 16,285 | |||||
Operating leases– right of use assets | 10,386 | 11,102 | |||||
Deferred income taxes | 6,410 | 6,893 | |||||
Intangible assets, net | 19,632 | 20,654 | |||||
Long term prepaid expenses and lease deposits | 2,470 | 2,888 | |||||
Total long-term assets | 118,736 | 118,276 | |||||
Total assets | $ | 215,664 | 216,473 | ||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Trade payables | $ | 11,197 | $ | 10,708 | |||
Operating lease liability | 2,874 | 2,974 | |||||
Other current liabilities | 16,534 | 15,724 | |||||
Total current liabilities | 30,605 | 29,406 | |||||
Accrued severance pay | 15,797 | 16,647 | |||||
Operating lease liability | 9,182 | 10,075 | |||||
Accrued pensions | 1,058 | 1,089 | |||||
Deferred income taxes | 948 | 1,073 | |||||
Other long-term liabilities | 1,945 | 1,945 | |||||
Total long term liabilities | 28,930 | 30,829 | |||||
Stockholders’ equity: | |||||||
Common stock | 24 | 24 | |||||
Additional paid-in capital | 401,921 | 396,335 | |||||
Accumulated other comprehensive loss | (970 | ) | (637 | ) | |||
Less – Cost of treasury stock | (107,717 | ) | (108,509 | ) | |||
Accumulated deficit | (137,129 | ) | (130,975 | ) | |||
Total stockholders’ equity | 156,129 | 156,238 | |||||
Total liabilities and stockholders’ equity | $ | 215,664 | $ | 216,473 | |||
Source:
2021 GlobeNewswire, Inc., source