DSPG May Overcome the Grip of DECT
31 July, 2018
CEO Ofer Elyakim: "Our Office/VoIP, SmartVoice and SmartHome revenues accounted for the majority of our sales for the first time"
For the first time in its history, the sales of DSP Group‘s old DECT chips for wireless telephony dropped beneth 50% of the company sales, to 48% of its total sales. Is it good or bad? For the CEO Ofer Elyakim (photo above) it is very goog. “We are excited to report that our Office/VoIP, SmartVoice and SmartHome revenues accounted for the majority of our sales for the first time. Better product mix and operating efficiencies also drove better than expected gross and operating margins. Moreover, we accomplished a major milestone by receiving Amazon’s AVS certification for our far-field voice activation solution.”
For the last two decades DSP Group positioned itself as a leading supplier of wireless chipsets integrating DECT protocol, but this technology is slowly fading away while costumers prefer to use cellular phones and Wi-Fi connectivity solutions. The company made many efforts to find new growth engines, but so far the declining DECT market remained the major market.
According to the Second Quarter 2018 Results, the change begins to be seen: Total revenues of $30.7 million, a year-over-year decrease of 2%, showed that revenues from growth initiatives of $15.8 million accounted for 52% of total revenues, a year-over-year increase of 7%. Office/VoIP segment revenues of $9.8 million, a year-over-year increase of 14%. SmartVoice segment revenues of $2.2 million, a year-over-year increase of 147%, and SmartHome segment revenues of $3.8 million, a year-over-year decrease of 27%.
Elyakim added, “Looking ahead to the third quarter, we expect a sequential increase in revenues, propelled by higher demand for our SmartVoice products, mainly for tablets and non-smartphone applications, and continued growth in demand for Office/VoIP products. More importantly, we are now at the inflection point where our growth initiatives will define our future and more than offset the secular decline of the cordless telephony market, thereby accelerating the company’s overall growth.”