The DSP Group Inc., a fabless semiconductor supplier, said its first quarter net income increased 59% and revenue rose 37% buoyed by strong demand for its wireless products.
The Santa Clara, Calif., company's profit rose to $4.3 million, or 15 cents a share, in the quarter ended March 31, from $2.7 million, or 10 cents a share, in the first quarter of 2002. During the same period, revenue jumped to $29 million from $21 million.
"The revenue growth was driven by new models of 2.4GHz chipsets shipped by our OEM customers and the initial shipments of a new chip with advanced technology that translates Caller ID text into voice and enables a 'Talking Caller ID' functionality," said Boaz Edan, chief operating officer, DSP Group, in a statement.
Eli Ayalon, chairman and chief executive of the DSP Group, said the company expects to maintain its profitability as it already has a "good visibility into the second quarter of 2003."
The company's gross margin strengthened to 42% during the first quarter from 40% in the year-ago quarter while general and administrative expenses rose as a percentage of sales to 5.5% from 4.4%.