<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS IN THE ANNUAL REPORT ON FORM 10-K OF DSP GROUP, INC. FOR THE YEAR ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY TO SUCH FINANCIAL STATEMENTS </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 12,172 <SECURITIES> 30,762 <RECEIVABLES> 5,469 <ALLOWANCES> 636 <INVENTORY> 2,957 <CURRENT-ASSETS> 52,609 <PP&E> 7,324 <DEPRECIATION> 4,033 <TOTAL-ASSETS> 59,207 <CURRENT-LIABILITIES> 4,758 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 10 <OTHER-SE> 54,439 <TOTAL-LIABILITY-AND-EQUITY> 59,207 <SALES> 41,290 <TOTAL-REVENUES> 52,910 <CGS> 29,432 <TOTAL-COSTS> 30,528 <OTHER-EXPENSES> 8,481 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 158 <INCOME-PRETAX> 7,036 <INCOME-TAX> 1,057 <INCOME-CONTINUING> 5,979 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,979 <EPS-PRIMARY> 0.62 <EPS-DILUTED> 0.62