{
  "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": 22,
  "pageCount": 50,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "demand_list",
  "function": "state_demand",
  "density": "balanced",
  "nDataPoints": 2,
  "notes": "The slide uses a bulleted list to build a causal argument for board intervention.",
  "elementsJson": [
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  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-aa56741b6a55/22",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-aa56741b6a55#slide-22",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "New, independent oversight is drastically needed to ensure that current investments are measured properly with an appropriate risk-reward to provide shareholders with the highest probability of success in the future.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
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      "componentId": "019dd953-78b7-702e-962f-76849ec8f0b0",
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    {
      "bbox": {
        "h": 0.05,
        "w": 0.65,
        "x": 0.08,
        "y": 0.88
      },
      "kind": "disclaimer",
      "text": "Note: Digital Telephony revenue is not a defined term by DSP Group. Digital Telephony revenue is a Starboard estimate for legacy product revenue that excludes DSP's New Product Revenue.",
      "attrs": null,
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      "bbox": {
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      "kind": "list",
      "text": "DSP's core Digital Telephony revenue is highly profitable but has declined by approximately 40% over the last five years. Given the move away from home cordless phones, we believe this decline will continue in the future.\nIn an attempt to offset this decline, DSP has used the cash flow from the Digital Telephony business to spend a considerable amount of R&D and SG&A on new product development.\nWe believe that well over $30 million per year has been, and continues to be spent on new products.\nUnfortunately for shareholders, these new products have generated no clear return as the Company has consistently failed to meet projections, which has instead resulted in massive losses in the new products and masked the profitability of the core Digital Telephony business.\nThis abysmal track record for predicting the success of new products is heightened further by the continued decline in the core Digital Telephony business.\nAt the current rate of decline in the core Digital Telephony business, the failure to generate any positive return in DSP's new products will result in massive losses in the future.\nNew, independent oversight is drastically needed to ensure that current investments are measured properly with an appropriate risk-reward to provide shareholders with the highest probability of success in the future.",
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      },
      "kind": "title",
      "text": "New Independent Board Members are Needed to Analyze DSP’s Investment Spend with an Open Mind for the Benefit of All Shareholders",
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  "metrics": [],
  "tools": [],
  "frameworks": [
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      "evidence": "The slide links declining core revenue to failed R&D spending, leading to a demand for board oversight.",
      "confidence": 0.9
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  ],
  "arcBeats": [
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      "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",
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  "loops": [
    {
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      "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"
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