October 31, 2016 / 2:56 PM / 3 years ago

DSP Q3 profit jumps, sees hit to Q4 from weakness in mobile segment

JERUSALEM, Oct 31 (Reuters) -

* Multimedia chip designer DSP Group posted higher profit in the third quarter but warned the fourth-quarter will be hurt by weakness in its mobile segment.

* Israel-based DSP earned 19 cents per share ex-items in the quarter, up from 7 cents in the third quarter of 2015.

* Revenue grew 10 percent to $38.8 million.

* DSP was forecast to earn 13 cents a share ex-items on revenue of $38.5 million, according to Thomson Reuters I/B/E/S.

* “We expect to accomplish our 2016 new product goals of reaching $15 million in mobile revenues and growth of approximately 50 percent in new products ... diversifying our revenue base with growing revenue streams that enable the company to achieve sustainable growth and higher profitability,” said CEO Ofer Elyakim.

* “While we project a year-over-year revenue growth to continue in the fourth quarter, we expect that our fourth quarter results will be negatively impacted by weakness in our mobile segment,” he added.

* DSP projects fourth-quarter revenue of $34-$36 million, versus $33.8 million a year ago. It sees quarterly adjusted EPS of 9-11 cents, up from 7 cents last year.

* Analysts expected EPS of 11 cents and revenue of $37.3 million.

* DSP’s Nasdaq-listed shares are up 1.4 percent at $10.55 in morning trade. (Reporting by Steven Scheer)

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