Benzinga | May 3, 2021 08:43AM EDT

DSP Beats On Q1 Revenue, To Issue Q2 Guidance During Today's Earnings Call

* DSP Group Inc (NASDAQ: DSPG) reported first-quarter FY21 revenue growth of 16% year-on-year to $32.6 million, beating analyst consensus of $31.9 million.

* IoAT revenues rose 14% to 20.8 million, SmartVoice and SmartHome revenues increased 50% and 22%, while Unified Communications revenue declined 3%. Cordless revenues rose 18% to $11.8 million.

* Robust demand for voice-centric products, offset by certain supply chain constraints, a record quarter for SmartHome business, solid momentum in SmartVoice products, and a faster recovery of the Unified Communication segment, drove the results, CEO Ofer Elyakim said.

* Non-GAAP gross margin expanded 130 basis points to 52.7% from enhanced product mix.

* DSP reported a Non-GAAP net income of $1.3 million versus a net loss of $1 million in the year-ago period. Non-GAAP EPS of $0.05 was in line with analyst consensus.

* The company generated $0.8 million in operating cash flow. It held $129.1 million in cash and equivalents.

* The recent achievements included the increasing adoption of voice user interfaces (VUIs) in a broad array of applications, the successful penetration of DECT/ULE into the security market, and the launch of new unified communications endpoints and hybrid collaboration devices by leading brands, added Elyakim.

* The company will discuss its Q2 guidance on its conference call at 8:30 a.m. ET today.

* Price action: DSPG shares closed lower by 3% at $13.89 on Friday.