Rodman & Renshaw Maintains Market Outperform on DSP Group

Rodman & Renshaw is out with its report today on DSP Group DSPG, maintaining Market Outperform. In a note to clients, Rodman & Renshaw writes, "DSPG reported 1Q11 revenues of $48.8 million; increase of 12%Q/Q and down 13% Y/Y. The core DECT products (82% of the mix) increased 27%Q/Q, primarily due to strong demand on the back of inventory depletion. Based on our channel checks, we believe the inventory levels are now fully depleted and this should lead a strong demand over the next 2-3 quarters. Region-wise, sales from European (41% of the mix) were up 19% Q/Q, while sales from US (41% of the mix) increased 38% Q/Q on recovery of DECT 6.0 product sales." At the time of posting, shares of DSPG were trading at $8.65, down 0.80% from Friday's close.