Tali Chen | Corporate VP and Chief Marketing Officer |
Ofer Elyakim | CEO |
Dror Levy | CFO |
Jaeson Schmidt | Lake Street Capital Markets |
Matt Ramsay | Cowen & Company |
Suji Desilva | ROTH Capital Partners |
Charlie Anderson | Colliers Securities |
Ari Shusterman | Needham & Company |
Thank you | Operator. Good morning - ladies and gentlemen. I'm Tali Chen - Corporate Vice President and Chief Marketing Officer at DSP Group. Welcome to our second quarter 2020 earnings conference call. |
On today's call, we also have with us Mr. Ofer Elyakim, Chief Executive Officer | and Mr. Dror Levy, Chief Financial Officer. Before we begin, I would like to remind you that during this conference call, we will be making forward-looking statements about our financial guidance for the third quarter of 2020, our expectation of positive prospects for our SmartVoice, SmartHome, and Unified Communications segment, our ability to leverage technological transformation accelerated by the pandemic, and our belief that our innovative technologies and solutions position us as well to take advantage of such trends and emerge as a stronger company, material but temporary downturn in the Unified Communications segment in the third quarter, the acquisition of SoundChip substantially increasing our service addressable market, optimism about adoption of ULE/DECT and market acceptance of ANC-enabled true wireless stereo headsets, as well as optimism about our engagement pipeline and customer product launches. |
Furthermore | it should be noted that the pandemic continues to evolve. As a result - the full magnitude of the pandemic will have on the company's financial condition - liquidity and future results of operation remain uncertain at this time. The following disclosure by management regarding the company's financial condition and prospects are subject to the duration and severity of the shelter in - and other restrictions related to the pandemic and its impact on the global economy - and the semiconductor and consumer electronic industry specifically. In addition to the pandemic - important factors that could cause actual results to differ materially from the company's expectations are disclosed under Risk Factors in the company's Form 10-K and other SEC filings. Forward-looking statements are made only as of the date hereof. Except as otherwise required by law - we assume no obligation to update any forward-looking statements. |
Before we begin | I would like to take this opportunity to update you on a changing terminology to describe certain aspects of our business going forward. In 2013 - DSP Group defined three initiatives aimed at growing market verticals which align well with our expertise. We call these initiatives - Unified Communications - SmartHome and SmartVoice - which together we refer as growth initiatives. Our strategy with respect to such initiatives proved successful. Starting in 2018 - our growth initiatives accounted for a majority of our total revenue. Reflecting our success in turning growth initiatives into our core expertise - we have decided to change the terminology - growth initiatives - to Internet of Audio Things or IoAT - businesses. |
With that | I would like to turn the call over to Ofer Elyakim - our Chief Executive Officer. Ofer - the floor is yours. |
Thank you, Tali. Good morning, everyone, and thanks for joining us today. I hope that you had the opportunity to read our press release, which we distributed earlier this morning.
As we report our second quarter results, the world continues to face a major financial and health crisis, and during this call, we will elaborate on its implications on our business, review our results for the second quarter, comment on the progression of our business plan, and finally, provide context for our outlook. Dror will then provide you with details on our financial results for the second quarter and our projections for the third quarter.