<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DSP GROUP, INC. FOR
THE QUARTER ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                          12,090
<SECURITIES>                                    85,233
<RECEIVABLES>                                    3,800
<ALLOWANCES>                                       314
<INVENTORY>                                      1,129
<CURRENT-ASSETS>                               106,138
<PP&E>                                          14,082
<DEPRECIATION>                                   7,513
<TOTAL-ASSETS>                                 118,550
<CURRENT-LIABILITIES>                            8,649
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            12
<OTHER-SE>                                     108,884
<TOTAL-LIABILITY-AND-EQUITY>                   118,550
<SALES>                                          6,522
<TOTAL-REVENUES>                                10,462
<CGS>                                            3,751
<TOTAL-COSTS>                                    3,826
<OTHER-EXPENSES>                                 3,361
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 104
<INCOME-PRETAX>                                  1,575
<INCOME-TAX>                                       393
<INCOME-CONTINUING>                              1,182
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,182
<EPS-PRIMARY>                                     0.11
<EPS-DILUTED>                                     0.11