Weak Cordless-Telephony market forces DSPG to build new strategy

7 November, 2012

Sagemcom will integrate CAT-iq 2.0 DECT chipset solutions in its advanced home gateways (HGW) with HD voice capabilities. Ofer Elyakim, CEO of DSP Group: “We succeeded in offsetting this weakness”

DSP Group

Ofer Elyakim, CEO of DSP Group: “We succeeded in offsetting this weakness”

DSP Group (Nasdaq:DSPG) said its revenues for the third quarter of 2012 were $36.6 Millions, a decrease of 24% from revenues of $48.3 Millions for the third quarter of 2011. DSPG is a leading global provider of wireless chipset solutions for converged communications, with special expertize in DECT cordless teephony chips.

DSP GroupOfer Elyakim, CEO of DSP Group, stated that “the low level of sales recorded in the third quarter, driven by softer market demand for consumer electronics in general and cordless telephony products in particular. We succeeded in offsetting this weakness and ended the quarter with non-GAAP net income, driven by improving gross margins and a more flexible cost structure. We remain on track to meet our objective of generating positive operating cash flows for 2012.”

Part of it, is because DSPG agressively boost its presense in alternative markets. In October 16, the company announced that ZTE Corp. from China has selected the company’s CAT-iq 2.0 DECT chipset solutions for developing an advanced home gateway (HGW) featuring HD voice capabilities. The highly integrated, small form-factor module is based on a single-chip solution from DSP Group – XceedR™ cordless chipset family.

During the last quarter the company has signed more HGW agreements. Sagemcom will integrate CAT-iq 2.0 DECT chipset solutions in its advanced home gateways (HGW) with HD voice capabilities. In September 2012, SoftAtHome announced that the two companies have jointly integrated Digital Enhanced Cordless Technology (DECT) Ultra Low Energy (ULE) home security, control and automation solutions.

Based on DSP Group’s XceedRTM family of DECT chipset solutions, the reference design enables guaranteeing CAT-iq support. The solution is fully upgradable to DECT-ULE. The companies hopes that with a dedicated frequency band, DECT ULE’s superior range and low cost of ownership is ideal for such home automation and control systems.

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