1、 1 2 Table of Contents Description PageReport of Independent Registered Public Accounting Firm 3Consolidated Balance Sheets as of December 31,2006 and 2005 4Consolidated Statements of Income for the years ended December 31,2006,2005 and 2004 6Consolidated Statements of Changes in Stockholders Equity
2、 for the years ended December 31,2006,2005 and 2004 7Consolidated Statements of Cash Flows for the years ended December 31,2006,2005 and 2004 9Notes to Consolidated Financial Statements 11 3?Kost Forer Gabbay&Kasierer 3 Aminadav St.Tel-Aviv 67067,Israel?Phone:972-3-6232525 Fax:972-3-5622555 REPORT O
3、F INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To The Stockholders of DSP GROUP,INC.AND ITS SUBSIDIARIES We have audited the accompanying consolidated balance sheets of DSP Group,Inc.(“the Company”)and its subsidiaries as of December 31,2006 and 2005,and the related consolidated statements of incom
4、e,changes in stockholders equity and cash flows for each of the three years in the period ended December 31,2006.Our audits also included the financial statement schedule listed in the Index at Item 15(a).These financial statements and schedule are the responsibility of the Companys management.Our r
5、esponsibility is to express an opinion on these financial statements and schedule based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board(United States).Those standards require that we plan and perform the audit to obtain reasonab
6、le assurance about whether the financial statements are free of material misstatement.An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made