{ "docId": "019dd923-622b-71dc-a6d9-aa56741b6a55", "docSlug": "fade76df1897", "documentTitle": "DSP Group, Inc. (DSPG)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2013-05-13 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 20, "pageCount": 50, "prevPage": 19, "nextPage": 21, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "Uses a series of historical quotes to build a case of management failure/misleading statements.", "elementsJson": [ "headline_text", "paragraph", "bullet_list", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6d9-aa56741b6a55/20", "deckHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55", "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55#slide-20", "components": [ { "bbox": { "h": 0.12, "w": 0.85, "x": 0.07, "y": 0.78 }, "kind": "callout", "text": "Despite this fanfare and significant R&D spending, it appears that DSP has not generated meaningful revenue for its XpandR multimedia product and has not even mentioned the product during its last four conference calls", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9b836160-1cea-478c-99df-93767eb08e56", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.85, "x": 0.07, "y": 0.27 }, "kind": "list", "text": "Chronological list of management quotes from 2008-2010 regarding XpandR product traction and revenue expectations.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d7af92ff-0125-49a6-a368-91c248b9618e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.85, "x": 0.07, "y": 0.19 }, "kind": "paragraph", "text": "DSP’s XpandR multimedia products, which we believe represented a significant amount of the Company’s total R&D spending from 2007 to 2010, has failed to generate any meaningful revenue.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dedfe660-d51f-4978-a04c-fc1a6218fb4d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Q3 2008 call: “What we keep seeing from operators is one, great interest; two discussing details of the projects; three, discussions between operators and OEMers about joint projects for the next year.” — DSP Group Management; Q4 2008 call: “This year's Consumer Electronic Show was an important event for DSP Group during which our XpandR product line received a clear vote of confidence and proof from the marketplace that the strategic decisions and investments we previously made were right.” — DSP Group Management; Q1 2009 call: “I can say that we shall begin deliveries and we shall begin to see revenues in the fourth quarter...we had increased tractions with customers and we are basically building on this momentum and working together with these customers in order to a) get these designs into production. But as Eli said, we will start seeing revenues coming in the fourth quarter and I would say most of these designs will -- can really mature into -- will mature into products into next year.” — DSP Group Management; Q2 2009 call: “we are still on track, so we do expect to see some revenues towards the end of the fourth quarter of this year. But as we said also in the previous call, most of these design wins will mature into revenues in 2010. But as we said, some production and revenues are expected in the fourth quarter.” — DSP Group Management; Q1 2010 call: “Now your second question was a more color on the new product line, meaning the XpandR multimedia. And as we said in the previous conference call following CS, we're seeing a lot of interest in the product...we believe that this products will gain traction in the second half and towards next year..” — DSP Group Management; Q4 2010 call: “What I can tell you is that we feel very good about the traction that we get for instance with the multimedia handsets that we showed that are several and new designs with new brands that will be launched from the beginning of 2011.” — DSP Group Management", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b7-702e-9630-a79376711c54", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.07, "y": 0.08 }, "kind": "title", "text": "DSP’s XpandR Multimedia Smart Phone Product Has Failed To Achieve Expected Results", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9e242acb-dcc4-41b2-95a2-140934d485b1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "7114c5c8-c788-4d1b-9f0b-925506aaf8df", "evidence": "Contrasts historical management quotes with current lack of performance/mention.", "confidence": 0.95 } ], "arcBeats": [ { "to": 36, "from": 6, "beatId": "81006f69-47c8-46d7-990f-1be8bffe15d7", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "Slides 6-36 expose contradictions and critique DSP Group's management and board.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 36, "from": 6, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "461286b5-1828-4e59-8f68-0c15c27a66ab", "evidence": "The deck repeatedly highlights the consequences of not changing the board and management.", "position": 0, "objective": "The cost of inaction is further underperformance and value destruction.", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }