DSPG - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to today’s Q2, 2021 DSP Group Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker’s presentation there will be a question-and-answer session. [Operator Instructions]. I must advise you that this conference is being recorded today and I would now like to hand the conference over to your first speaker, Tali Chen, Chief Business Officer. ahead. go Please

Tali Chen

we Good Levy, Chief Valarie. our and I'm Officer; today's gentlemen. quarter Ofer us Thank Chief Financial Elyakim, Officer morning Officer. at Chen, Executive call On call. Business earnings Mr. to have DSP Tali with XXXX Mr. Dror you, and conference ladies also Chief Group. second Welcome

of statements Before XXXX. the we will call, during this we begin, conference for I guidance would making like about forward-looking to third financial quarter remind you that our be

our voice ULE SmartVoice our Our uniquely hybrid us and that We and to offering Unified debt, prospects the these belief strategic demand product associated about and to continued for challenges, position update chain ability and optimism to and well statements. product as opportunities, successfully growth market with devices forward-looking supply of manage work Communications, our capitalize verticals, centric engagement as on pipeline models; no obligation the the launches. customer for inversing response, assume adoption SmartHome your usage increased

information about the made and could statements SEC XX-K forward-looking to XXXX have more please we our factors filed. and reports refer in the risk herein, affect the other that Form factors risks discussed For

I our Now, to yours. to Ofer, call the is Ofer the Chief over like would turn Elyakim, floor Officer. Executive

Ofer Elyakim

breadth growth uniquely and IoAT combined on leadership, second The positioned and is living, in-turn resulting of DSP our demand with all for gross to In XX.X%. are quarter. increasingly record businesses. focus basis, XX% XX% of second market global silicon exceeding results Tali details total year-over-year our pleased demand this proportion you for revenues short earlier and Tali. our quarter voice-centric which Good offerings, second lower distributed partnership the voice-centric total, of sequentially. quarter opportunity who followed businesses the and had almost the on sold to call of software that a I'd growth on from revenues we sequential us our of the $XX revenues. provide joining in which IoAT of all results, context million. margins supply translates created year-over-year by This outlook. of navigating consecutive for read for businesses contributed XX% for relying fronts, of which capitalize our driven of begin In on hope quarter third we our our financial cost core will at by substantial the our to trends. with this businesses large and on voice-centric our were and impact you, financial Thank by most of revenues press stimulating combined plan, of IoAT the you associated metrics end expertise while virtually depth discuss I to of record and for Dror growing rising morning provide everyone a for posting Group like and today. second guidance the of accounts reviewing business products, our with record models generated goods XX% We will new of ended interacting, a revenues quarter the release high to the outstanding pandemic the our with quarter the to thanks guidance morning. are contribution IoAT progression highlights usage, quarter. by range, which a record To our by XX% quarter $XX.X the a and our working with propelled our all and record strong with These successfully the million chain second challenges. The non-GAAP portion across and fixed start, projections on The second for you high to opportunities higher

elaborate, tools. me let manage intelligent complement in to the paradigm day-to-day distributed technologies workforce, to a operations in need rapidly new their and the Incumbent, and Communication, Unified building support handle emerging well Now utilize from new productivity effectively the and working anywhere, of adapt in in at environment. companies to concept software, technologies in and new needs players employ to to a of remodeling of hybrid class incorporating to at spaces DSP opportunities. meet change. enabler pace defining working new are paradigm. underlying is flexible trigger new IT new innovative more this as infrastructure communication that is best environment and companies and these technology hardware and as forefront a focused clear and over for and evolving providing are the quickly respond Group that on the businesses It's are adapt and More investing hybrid working developments

to focus, voice in a continue and across communication. applications. the high demand domain adoption play positions interface, VUI and well video expertise the track user addressing in leadership essential Our quality mainstream different performance Communication for successful ubiquitous the and In its role increasingly us became for and the record voice Unified through

monitoring consumption, combining Unlike products responsiveness privacy reduces very alleviates without and Smart reasonable price are on IoAT demanding more connectivity, terms concerns, translates In increasing ultralow customers low capabilities only data the development use, speech our addressing the addition, technically recognition architecture solutions their Single a the At deployment. proliferation ease of algorithms a incorporated frictionless the of are products solutions environment. demands, that products connectivity on local Edge Processing in long device voice competing AI internet offline to language which range, becoming more devices frictionless dominant and a and locally challenging local leverage catalyst the positioned home offering on to Acoustic experience. perfect power, real smart intelligence a requests latency users wave assistant time, and the also well the SmartVoice solutions, SmartVoice we mass further automations of proven acoustic availability these superior such performance immediate run from latency at and seamless equation, and the and in our growing is provide voice an shift cover features, More processing connection. in time for Edge. widespread for our power In In staffing savvy such natural and secure, with to support part same ULE is next capabilities, see processing are of of experience. of to the home and command clear adoption, portfolio response, performance. our timely IoT wellbeing to support flexible to Processing towards fully user provide and devices processing a match the two growth with enable local best-in-class reliability Security, processing EdgeAI,

with We key provides. and the security have Group global even markets, participants a this the for the This and in opening promising leveraging realizing ULE segment. up and more recognition larger technology enabling U.S. unique most successfully home established technology is DSP the leading as market proposition value and

on cordless unprecedented phones, have experienced quarters products. we Lastly, past four during phone demand for cordless the

momentum for remote and was work, of record apply. restrictions to times Nevertheless is packages progress distancing by are challenges. constrained multiple handset These still all end and demand strong ahead. and are this refreshing our In believe chain the mainly demand IoT that extremely positioned expecting we home However, as markets DSP across This third favorably growth that a expertise. in made for increased by excited reality telephones over customers driven direction, demand result quarter. their revenue still core we businesses, continue driving exciting social are supply into are as shift summary, the by with is solid well we our our we the for Group

and our business, supply the our guidance The expect account that revenue range midpoint and to this expect constraints in third factoring to $XX growth. robust momentum million both, a $XX of strong in also in of implies Taking face third sequential the to our range in million. product quarter. remain different in be the the quarter ongoing we revenues We we year-over-year across our chain the demand business into lines,

as are These new are create are We XX% and that comprise growth quarter our not sustainable and digital models products also of demand and project To portfolio the ways voice-centric temporary, summarize, and innovation IoAT such drive DSP our continued technologies. they for third the forms, revenue partnerships and to revenue. the of interacting. in new expertise, and stay will Group’s products living, here working that our diverse continue created outperform to of transformation XX% businesses by various in to supported

strong future thrilled voice, AI solutions will are We in continued that momentum leadership our confident and are and IoT success. technologies and our drive about the business

number record a wins We growth strong performance very to ahead. that contribute of customers expected revenue design from a to are pipeline solid with new of and are benefiting

each Now, segments. I'd the in to call over floor like of performance turn to the our to yours. product Tali, is Tali the discuss

Tali Chen

Thank our Ofer. you like to update business. begin would you, on with SmartVoice providing an by I

and array domain, voice augmented feature that reality solution to complete to well devices in A high quality leading chose control achievement, voice as into in our smart in During our flexibility, Consumer Group our SmartVoice increased this of a reach by achievement: results pandemic This DSP electronic coupled trend also a flawless voice launched the solution device the interfaces. sequential trigger of far addition and demonstrated a diversify the in enable leading to were of which broad Tablet and other on reflecting consumer for driver home the voice with to of product. by selected greater from additional record, growth audio together the enable of pipeline new our switch solid products, and as a COVID continue on use avoid what wearable broad position a a improve the to the significant and product and as array is the our adoption year-over-year as its is a million EdgeAI This market or The solution enable AI necessity, sales XX% its GoSund interface EdgeAI our products, robust XX In expend interface Voice TVAccessories experience. a SmartVoice SmartVoice quarter key include revenues franchise increase already strong surfaces, entertainment by transforming features. SmartVoice hygiene. needs, interesting we user increase related into commands, X we SmartVoice wide strong SmartVoice to and our by supports approximately made trigger pivotal of cloud in engagement smart are field and in highest increase Tier the word reliability. and generated momentum of an interaction. a a and These accelerated commonly applications. of switch the and algorithms, of words. control shift with quarter consumer based exciting and overall $X.X powering spread range favor Edge These across following support brands applications driven space, our more and also enable as from light of Moreover, voice our voice role during inroads a brand relies we products user and a to U.S. on contact SmartVoice solution in of playing addressing platform based of company local allowing control, see ability applications. match in XX%. in underscores voice suite to an up reflected touch DSP opportunities, preference quarter to accuracy voice activation portfolio and effort our with has dual devices

market that Unified to increase year-over-year Communications due million, of reflecting the quarter was partially supply solid generated a XX%, increase segment. of and and the we of a met only on Moving representing to revenues the XX% In second $XX.X constraints. sequential demand

globe purchases home cope virtual environment Within hardware from around their and with to or the office that replacement had to the office. derived new office, new the and This hybrid main of as hybrid challenges employees at the additional a workforce. as renovate support devices employers space businesses the triggered an well adapt cycle and

for security and and portable In environment, usability, headsets, speakers forefront is of these other at among for needs, this solutions employees. our operation portfolio The addition, addressing end-to-end therapy are compatibility, terminals, tools. in IT of new leaders the DSP core fixed and digital all about worried Group

additional certified continue certified solution demonstrated adaption labs quarter work-from-home Moreover, the speakers achieve during market portable of customer we expand active devices. our this XXX the devices market quarter, compliancy team Teams noteworthy of Communication team we major following to the by enable Teams player as and such usage indication pipeline During time driving for an A will this continued devices. Microsoft yet testing and conferencing. for voice users, has our for level commitment suppliers Unified to Microsoft This million ones. passing demand faster our jumped daily chose its SmartVoice new traditional to to UC when our launching initiate. achievement devices,

line Sangoma our of remain we about highly and pipeline market integrated IP opportunities. prospect engagement remarkable based progressed DVF segment, this pending platform. system-on-chip bullish launched the a In on addition, of very the with dynamics phones growth of by described, coupled We

our to smart Turning home product line.

XX% million, year-over-year on quarter revenues sequential of second representing XX% and we a delivered record $X.X of the During basis. a increase

continued of security adding with domain, providers. beginning during starting in-person ULE be major managed investing service wins. Moreover, expand now one Service based enable continuing product the mainstream partnership fully benefits During translated solution believe This will the ULE IoT our in in the that to the pipeline, the was design our pandemic. as offerings additional the performance in aforementioned driver home participated on want we kit. European demonstrated with to experienced its introduced design a gateway solution pipeline from AVP to leverage This growth interest security interest a healthy event [ph], win demonstrated the customers at since certified the an we services the and This cloud our players future. ecosystem we Security largest growth quarter development. of model. ULE smart and providers, year by business will ISC hub West, have to first recently in unparalleled We traction without solid in to this Cloud the for

of to while service, service to Second, services. we need coverage driven DECT by low power, reliable deliver telecommunication providers, home quality IoT at enabling increased voice higher adoption into data see communications full by ULE the of more continue and also

This our quarter, DECT that accelerate technology the is includes To engagement - new business we broadband broadband features. strong, DECT momentum behind ULE additional such the a and gateway further European pipeline service this enable launched provider expect new a Connectivity to going summarize, forward. ULE our to

Now, update an market. on cordless for the phone

year-over-year, severe and products. cordless product supply second During the we by X% increased continued while by Demand demand affected declining cordless quarter, Revenue to constraints. currently sequentially. solid experience are for XX% strong we for is

calling We the forms, lifestyle, with revenues needs next to similar cordless we are cordless balancing working remain our customers, and increased expect diligently for rising driving propelling in the quarter. our with home its all levels voice supply at even limitations. demand usage in phones From

to would turn Dror I results projections. quarter update to like to provide financial Now, with third you call Dror. and the over on our an

Dror Levy

Thank the bottom. now top of you, for will Tali. the to income XXXX from I review statement second quarter

in compensation as For line to item each expenses previous included expenses acquisitions. results, this based line year’s provide will well as and GAAP related I the equity item

was tax diluted negative expenses $X.XX. $X.XX equity compensation rate taxes of of of was differences VPS $X deferred related exchange deferred expenses intangible impact million, Non-GAAP equity assets was related $X.X differences based was just of excluding was million The quarter VPS tax taxes share quarter in acquisition for were quarter amount for impact the acquisition. expenses including from see equity of amount million were XXXX $XX.X amount million. included and with Income million the income as $X.XX. term $X.XX. million. negative differences the deferred was differences million quarter loss assets these leases. related $X.X quarter. on the to compensation was impact impact the the margin XX.X%. report per $XX.X in Please compensation basis Non-GAAP Net equity of GAAP amount Gross expenses presentation negative for exchange and amortization benefit non-GAAP million. of full million. Our compensation compensation the exchange $X.X changes million. of previous of the as on compensation to were of to million. was SoundChip expenses from Income for for million. SoundChip the to the in and $X.X of SEC intangible based and acquisitions $X.X these amortization non-GAAG Operating were we items net a on non-GAAP was including equity non-GAAP to previous the on reconsolidation to the due income included Form in of $X.X in were related for rate mentioned revenues the per acquired intangible loss for amount equity expenses $XX.X a positive income $XX.X included of of margin accounting acquisitions the of $X.X benefit was expenses $X.X $X.X X-K quarter Financial the million for quarter $X.X expenses of including standards in assets income of tax $X.X Gross this million. The the quarter. the quarter amortization exchange long quarter base quarter. based was the expenses VPS related excluding $X.XX second items of the of $X.X GAAP for just related the for financial million, expenses the and the expenses to basis in Financial expenses for to results $X.X $X.X based million, our related the million. including amortization on second the expenses $X.X filed based Operating $X.XX. million, a the and to expense to amortization amount quarter, for R&D for amount described morning described million, The income were share rate items the the The current tax related on These million that of just excluded presentation.

Accounts the $XX.X a the of Now sheet. at quarter days. representing sales. level first of at of to the XXXX balance from dollars receivable the quarter, increased of of the the end a $X.X decreased dollars XX second compared the to days representing as million turning million to end quarter end $X.X million to level $XX.X of million, of Inventory first XX

as the were million level marketable second and $X.X cash the quarter Our increased million securities $XXX.X June by at of XX. during and of

cash by million of was position cash during by of securities. was Our and amortization price of a generated of $X.X in cash the $X.X for affected repurchase and the security equipment. used $X.X of hand the million million of cash of and approximately XXX,XXX $X.X used for following: was change with quarter property on operation. million shares purchase market cash marketable

Now, I quarter projections provide the of the for will third XXXX.

quarter Revenues in million $XX to impact to including projections expenses acquisition third amortization expected of equity range follows: expenses to are $XX are million. Our of the compensation based as related and be the

in $XXX,XXX. are the be to We expenses to XX% Financial $XX expected gross be range are be income diluted the to on a expected are income R&D approximately the be the XX expect in basis expected margin a and Taxes Operating of is to range income million. in be range basis expected expenses to million. of be to to of million $XX $XX million Shares approximately outstanding of million $XX of XX%. range $X.X pretax and are new million on shares. approximately U.S. expected $XXX,XXX on in income XX% GAAP basis. to to on

amortization quarter assets. projections million third intangible $X.X of Our include of

based G&A expenses to Cost and to goods focused the the for $XX previous include Our projections R&D million include include include million. and to $X.X following acquisitions. million. $X.X to expenses intangible $X.X and Sales marketing $X.X also related million million $X.X third equity expenses assets $X.X amount expenses million of include quarter compensation at million.

up to for questions-and-answers. Now, we'd open the like Operator, please. line

Operator

comes you, of Thank go from And sir. from first Cowen. Matt [Operator line ahead. Instructions] question your Ramsey Please the

Matt Ramsey

Good everybody. strong much. results Ofer morning, environment. in a very really you obviously thank challenging Yes, supply

of magnitude us If a Thank some particularly supply challenges, of sense quantify helpful. cordless the would just for you could be the help in business, maybe the you. chain

Ofer Elyakim

question. the Hi Matt! Thanks for

more pretty So respect the technology with as very industry visibility, our going we think in to supply traditional I us do specifically, demand challenges, most chain so familiar the which see the across much with nodes. and you are solified industry supply on sits in what's but for in in of in strong general among

also there of the a but quarter, number The environment other is quarter at imbalance say this today that communication get you’re product as demand question, it. end When our supply, right of phone, well supply as XX% supply look constrained, some around the to includes we portions between lines, that today Unified to overall cordless in thing and is also. second and SmartVoice. SmartHome challenge to of our challenged well in when course it the you you third XX% can the the now by inability demand doesn't

that currently. to hope but that So of to and know more lead this is supply customers ability times through that. entire goods do you working is the has where products, more enable we're us We you increase with and the it will know all deliver chain serve caused to future the our

meet So far being think still demand successfully, but this to able the year there. out I not

Matt Ramsey

it, it, that. for thanks Got got

another call sort line if win that which And security of for provider? DIY able bit. that's in? might my you the it engagement ADT service ULE on little before? is, on geography I it furthering in to light a a that could I business with main of interest be vendor. some be announced piqued you One the product shed that Is the elaborate was, you the on were home the Is think if things wonder may Thanks. or you with

Ofer Elyakim

sure. Yes,

the around products global are of and in is more ULE this other as part of our worldwide basically standards in So in Europe connectivity and – the is geographies of the European is of service so a launched another one that It's well. three security top as far also part to-date this provider. security main design gate

significant and pretty I for represent more An many for and fit main know you market a – in players does a opens security this for within it think win. really the domain, it’s the as ULE well the providers up just ecosystem that ecosystem us for door installed So an of as endorsement come the there this a security with type It professional you professional with products also know design comes of smart, and their It services. other and win. type as is is well-being partners when install of doesn't product. service

So it for discussed definitely on up the on and opens and calls, happy market we think are adoptions it's that ULE very as that previous pipeline. more with we I this call and also a

not one. is this the last So

So additional launch the – and for really the many providers services that needs. we products based going best-in-class service on pipeline are there as believe their are such to found is out to in meet new what

Matt Ramsey

Got it.

Just a is on milestone. quick one a me gross of a margin. from heck drawer on XX% last [ph]

been I over last the that's six remember back day. working my margins think in higher XX with guys since I than or have you the team years, points seven

think kind I achievement. an us if you quite levels a little sustainable if mid-XX’s low in those It's to give might are from you Thanks. here. just that! on of wonder context congratulations So the

Dror Levy

Yes.

the IoT’s. something of the true which correlation saying will years and recall called been that know of to the firstly, couple the we basically for used we between see have what you call So we we that discussing we and continue growth percentage now see to a to the then growth it's this initiatives and thing that is

the one, like calling, percentage of pick see thing. that margin, the fixed products couple with the also because to cost. thing products And now. think gross I coming see the percentage discussing higher will something been these We’ll up. we of margin, the of we've for this like a the is a one is are like years is this correlation So That to also second related

of on fixed So but buying believe like by we of this and range continue these we'll low level gross market we if that revenues decreases is percentage still costs guidance of margin the grow we running for also this quarter, to a once an the and our the basis, at you and these third XX, to in XX and budget, margins absolute levels. pushed see in definitely, believe yes this look XX’s the the

Matt Ramsey

appreciate I Thanks, it.

Ofer Elyakim

Thanks.

Operator

you. Thank

the comes line question Smith Lake from Jaeson next of Street. Please go Your ahead. of

Jaeson Smith

on I Hey Thanks want taking chain. follow-up my guys! for the just supply questions. to

there? if and the out you're getting programs officially seeing Just curious definitely any given canceled, getting but out maybe designs, or not just maybe pushed tightness

Ofer Elyakim

and Jaeson, thanks for the questions. Hi

if that the products certain served out you demand made. it there or is moment as the there respect you ability we are the of which course is appreciative much and is you to the at fairly think delayed, hope to best tools of that By pretty of exceed as kinds I being that patience the is there need, does that is does know based So imply on – thanks respect this also is I be. ability the think even efforts supply. know at all should are It but appreciative know of This impacting, the their customers do believe remains. supply, that what with being not at to the it but well customers. They you demand need don't is moment, much I the customers hold, are and expedite it's to to healthy this that supply know is as moment everyone customers and think pretty the with trying our that you the chain, applying transportation, to that goods the are and the for and features know know customers well again to it are as we diagnostic far really fact true so product I

healthy that could continue to the is I healthy. markets fairly stay supply channel believe – what shipped and of think being of now the for most checks, the certain So to in check the end chain terms we and products that doing usually are we

Jaeson Smith

you're Okay, that's anything just customers? if costs really and seeing those curious helpful. significant pressure inflationary if standpoint, from to so, the along And passing if you're

Ofer Elyakim

think that costs secret chain supply with upwards. and situation, moved no this tight I is have it

lives when our see but we chain. also I our see aspect we that it of think in certain of parts supply consume we production services, almost in every

to what but do between that the balance pass two. tried a on, think must is That a got we would healthy we I create balance costs have that certain costs. I we certain between that it's healthy say

Jaeson Smith

then me into I'll last queue. from Okay, just the and back and jump one

SmartVoice know segment, you really at is Looking it momentum. nice that

you've tablet the I highlighted of term being in and think as of drivers. the sort PC past some near the market

that Just this segment? are we those this second markets think the curious really into you as do half end of same propel the going be ones look year, to

Ofer Elyakim

that these think front. according of SmartVoice, a players I puzzle product in the important mark-to-markets and we entertainment to think are our think the be announced as mix of to products, which segment, the going the as will third on now, I well I and part PCs of number that so wearable be Yes, expectations to tablets

think with growers So I the mix. these the respect movers and are three to main

Jaeson Smith

Okay. lot Thanks a guys.

Ofer Elyakim

you. Thank

Operator

Thank you.

Your Desilva ahead. next question from Capital. comes from Suji ROTH of line the Please go

Suji Desilva

Ofer! Hi Hi congratulations Dror, progress the Tali, on here.

the quick a question just on SmartVoice. So

it's of about really the sound what are kind or SmartVoice? percent wins the all leveraging EdgeAI your seeing compelling, in of As very of the the you now design capabilities feature – SmartVoice a talk which for it EdgeAI is

Ofer Elyakim

for thanks and question. Suji, Hi the

how based support also type new we a run provides SmartVoice memory accelerate products, and Total So mainly have of our of of such processor. do to well using that we utilizing as multi code, our parts and launch and such you new processing think core traditional portfolio X this capability, of was type in that know This In the we able with some as EdgeAI multi also EdgeAI in learning are really pretty then with really and that a designs we with the machine a capable signal where some dedicated, today algorithm. the of portfolio, most leveraging lot DSP’s some I digital to were in on together respect the you know are processing. older of classifiers, core can to have, the efficient products sheet robust done

processing you composition silicon. were our me over year, revenue the will let's ask a if to So run this EdgeAI say third on about, probably

Suji Desilva

you can the how then, headset us And Okay. that's market opportunity, tracking? update the the That's on helpful and design-in’s Ofer. there,

Ofer Elyakim

now said days very important our of something or hybrid will is Yes, as to plan product launch with this expecting – fifth MC soon. launch also think our next capabilities launched I very with fact, That another and that be will Processing with is ANC together fourth silicon. SmartVoice, matter being EdgeAI is our best-in-class a headsets is just absolutely! a So incorporate I Smart in are to a coming we as and the and that of that model that

Suji Desilva

as and Windows well. question into me the that talk enterprise last can just sustainability cycle mean strong. Okay, look then upgrade I seems from Communications front. Can as on talk you the as And your to year, replacement you of UI a Hey Unified – Voice about very coming forward cycle upgrade option Microsoft EP that, of visibility the XX next demand well?

Ofer Elyakim

Unified right? thanks. Communication, quite capture made didn’t on the the I Suji question the on comments – was

Suji Desilva

Microsoft Windows broadly more enterprise. Enterprise and XX then for as a Correct! driver

Ofer Elyakim

a in that is force console need think to to good that brought more, to we support need traditional lot of we're pandemic. collaborate, to platform, a the stays what does It has because connected and capabilities, this does office, the bring how drivers today with during work lot the as then top content, always refresh people the and this over business One the see gradually way fully a that do a a where and a basically so using to being need the I be over-the-top the returns in more bring support capabilities. at and enterprise. seeing So be cloud-based to to have in open number

all a members team fact some not person, be to the environment, in working going joining decisions are in that remotely. the addition, be are hybrid to In going joining

utilizing that to I You and software think that third accommodate the use have performance the upgrade wide themselves that of accessories, is think lot as and people the that quality. able will a the the and so, hardware need and the the and over further so speaker, to that are as better well, video Zoom more WebEx have speakers, and some headsets both complemented and and on-prem and and performance. the collaborate the the the mainly being online need and in these believe necessitate home as heard collaboration Teams And so of is I where in team facilitate front right to are a then, both anywhere the of quality as with platforms be products other emergence be from a can those, facilities the it sides, fairly to etcetera, that denominator coming the in working new but in it any are need meet enhance And with collaboration. very Microsoft over been like common that in-person, some we better are better or a do joining without do emerging voice don't from listen hardware. of to professionals And well, with platforms is experience many this to other, lowest top dedicated can hardware environment facilitate some capabilities of also where also the will can part that we cameras, equip to mic

You necessary and going But and and get have quality Microsoft for support is what is of this great will video voice the as certification high course supporting. all we with we're where we as course, is updated, without a mandated, do great. can a still video course this now Certification, feel is Team and the version criteria. and Also need of of investment voice-only this the call

Suji Desilva

very Okay, Thanks much. thank you guys.

Operator

Thank you.

Please question next Colliers go comes ahead. of from Soderberg Your from line Derek Securities. the

Derek Soderberg

guidance. taking to questions. my with for want start the I everyone! Hi Thanks

can can directional IoAT sort you IoAT You if back QX us give cordless but know of I'm and segments. revenues, to within out guidance we any those wondering

Ofer Elyakim

Sure.

break So the we did guide. IoAT not down

performance. not have to verticals which this all as I the think also reflected said seem is robust done do in we trajectory and of the think continue good I so market see XQ is a to couple for and and guidance. we fairly healthy the so our expectations healthy last also Right in general we now IoAT serve comments, all in we see do across I that demand for the quarters. But of the think

where see almost there was from same the double XXXX. in it time, you we’re QX If

Derek Soderberg

guys bought as back Awesome! are the to Do a you then in Very share what expect program currently quarter. guess repurchase you shares? And fair. shares Thanks. of your follow-up, I an decent my in amount plans do know to buybacks? and you have place you continue going on authorized forward

Ofer Elyakim

of we it, utilized is plan place $XX think now I of in so the and it's so course that we it so we of that Yes, XXXX was like fully all to the the a a that actually utilizing that couple board had buyback you look bring started million early this million something utilized, overall over like at in I have average you done we've we that see year. if and last the $XX done we’ll think years, in

assume buying So we'll in you market. that continue to can be the

Derek Soderberg

Thanks. Awesome!

Operator

Thank question line your next Please ahead. go of you. the of And comes Gill from Rajvindra Needham.

Rajvindra Gill

calendar could situation potentially I’m of timeframe kind capacity the what when partners? wafer Thanks one? manufacturing you guys! can provided expect for on the my or question. rest year more going [ph]. I’m and provide the of Have taking Dennis they from wondering, or this through manufacturing behalf Hi expect to capacity we just on any alleviation any Roger for color ask the of here they next

Ofer Elyakim

with what all with will CapEx on at we do there so can as is so adding more I by the a see. lot benefit investment see respect some from capacity, Hi publicized hope etc. And plans, capacity Dennis! manufacturing from gets also you what moment, such the and we we capacity announced based expansions. the think in vendors, it’s to that record So and But

from I touch be powder continue availability us collaboration into also front such of year partners the on in hope new this support to and the and all of tight future, our We to manufacturing do see can partners back dry we course new a and when does next end do capacity close partnerships of that enable starting well the to think our are end, of meaning with that also a continue to getting very remainder keeping in year. strong and build-up, but utilized. we're the this perhaps see pretty such exactly we're and that less But our

Rajvindra Gill

of facility? Thank driving was are going anything your designer that any what facility what share it. progress you, new your Germany, there can plan is is Kind facility then the kind that is at you about in new forward And projects, kind of helpful. Got any of it for wins.

Ofer Elyakim

Sure.

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Rajvindra Gill

That's color. the appreciate you. I it! Got from me. it Thank

Operator

don't to Tali remarks. seem call would back additional Instructions] any to the Please turn questions. have closing to go We for I [Operator Chen ahead. Thank you. now like

Tali Chen

on the coming for and and your forward XX listening Thank you. Conference days. in the Thank Investor on are mention XX. are Semi-Conference months for following September X; Capital to I Street in you to to you interest XX; looking that we back in DSP to like conferences: investor would we on Colliers report present Conference at Jefferies Market Lake Group, September and during scheduled Aug

Operator

you today. and call ladies for you your gentlemen, Thank participating disconnect. and you all does for now Thank conclude conference that may

DSP (DSPG) 2 Aug 212021 Q2 Earnings call transcript