Benzinga | Aug 2, 2021 11:58AM EDT

IoAT Contributes To DSP's Q2 Earnings Beat

* DSP Group Inc (NASDAQ:DSPG) reported second-quarter FY21 revenue growth of 26% year-on-year to $35.8 million, beating the analyst consensus of $35 million.

* Total IoAT Revenues jumped 35% Y/Y to $24.8 million as SmartVoice rose 82% Y/Y to 47.2 million, SmartHome expanded 33% Y/Y to $5.7 million, and Unified Communications increased 16% Y/Y to $11.8 million. Cordless Revenues rose 11% Y/Y to $11.1 million.

* The non-GAAP gross margin expanded 310 bps to 54.1%, aided by a favorable mix of products and solid revenue growth.

* Non-GAAP EPS of $0.12 beat the analyst consensus of $0.08.

* DSP generated $6.8 million in operating cash flow and repurchased shares worth $5.3 million. It held $129.9 million in cash and equivalents.

* Revenue growth was driven by solid demand for voice-centric products, predominantly in its IoAT businesses.

* The company sees promising trends propelled by new living models, working, and interacting, all of which increasingly rely on voice-centric products delivered by its IoAT businesses.

* Price action: DSPG shares traded higher by 0.53% at $16.14 on the last check Monday.