Just a coincidence............
techweb.com
DSP Group Eyes Acquisitions
(07/29/97; 5 p.m. EDT)
By Matthew Sheerin, Electronic Buyers News
SAN FRANCISCO -- DSP Group Inc. is actively looking at acquisition candidates to help it expand into the video business, the company's chairman said this morning at the Robertson Stephens & Co. Semiconductor Conference here.
DSP Group, based in Santa Clara, Calif., has marketed its DSP products at the telecom and PC markets in recent years, but sees enormous opportunities in the video arena, for applications including video phones and set-top boxes, said Igal Kohvi, chairman. The decision to move into that market came after a detailed study, he said, adding that DSP is interested in high-growth businesses, but not any segments projected to be worth more than $500 million in 2000. That's because DSP Group doesn't particularly want to go head-to- head with the top-tier chip suppliers he said.
DSP Group has nearly $50 million in cash on hand to fund any acquisition; that's up from $32.3 million a year ago. That improved cash position is the result of a consolidation of some operations last year, as well as reduced inventories and operating expenses, Kohvi said.
An acquisition would significantly expand DSP's product offerings, which currently represent about 80% of its revenue, which totaled $52.9 million in 1996. However, Kohvi said his company hopes to expand its licensing revenue, which represents the balance. DSP Group is aggressively trying to sign new licensees for its DSP core technologies. |
