Monday, Chip-set solutions provider DSP Group, Inc. (DSPG), reported a wider loss in its fourth quarter. The results reflected certain non-recurring expenses. Excluding items, earnings came in below analyst estimates.
Net loss for fourth quarter swelled to $194.40 million, or $7.23 a share, from $1.59 million, or $0.05 a share, in the previous year.
Excluding one-time charges, earnings were $3.99 million, or $0.15 per share, a decrease from $9.11 million, or $0.29 per share, in fourth quarter of 2007. Excluded were amortization charges of acquired intangible assets of $5.65 million; equity-based compensation expenses of $3.19 million; impairment of goodwill and other intangible assets of $181.53 million; unrealized loss of $2,290,000 and net tax charges along with valuation allowance of deferred tax assets of $5.73 million.
Revenues for the quarter dropped 16% to $71.55 million form $85.20 million in the prior year.
On an average, 4 analysts polled by First Call/Thomson Financial expect the company to report earnings of $0.17 per share for the quarter on revenues of $76.56 million. Analysts' estimates typically exclude one-time items.
Net loss for fiscal year 2008 was $212.39 million, or $7.48 per share, compared to a net loss of $4.75 million, or $0.16 per share, in 2007.
Revenues for the full year, on the other hand, grew 23% to $305.80 million from $248.79 million.
Non-GAAP net income for 2008 full year slid to $13.81 million, or $0.49 per share, from $29.23 million, or $0.99 per share last year. Non-GAAP net income excluded amortization of acquired intangible assets of $22.85 million; equity-based compensation expenses of $13.94 million; impairment of goodwill and other intangible assets of $181.53 million; unrealized loss of $2.96 million; restructuring expenses of $1.87 million and net tax effect along with valuation allowance of deferred tax assets of $3.05 million.
On January 27, DSP had agreed to buy back all of its 4.2 million shares held by NXP, roughly 16% of the outstanding shares of the Company. During the fourth quarter of 2008, the Company repurchased 847,596 shares for $5.3 million at an average price of $6.23 a share.
DSPG closed Friday at $6.51 on the Nasdaq.
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