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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
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DSP Communications, Inc.
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(Name of Issuer)
Common Stock, par value $.001 per share
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(Title of Class of Securities)
23332K 10 6
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(CUSIP Number)
20300 Stevens Creek Boulevard, Suite 465, Cupertino, CA 95014
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
October 27, 1997
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box / /.
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are
to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section
of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).
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CUSIP No. 23332K 10 6
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Davidi Gilo, individually and as sole shareholder and President of Harmony
Management, Inc., as trustee of the Davidi and Sandra Gilo Trust, and as
President of the Gilo Family Foundation
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /X/
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(3) SEC Use Only
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(4) Source of Funds*
PF, OO
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
United States
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Number of Shares (7) Sole Voting Power
Beneficially Owned 2,317,161 shares
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
0
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(9) Sole Dispositive Power
2,317,161 shares
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(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
2,317,161 shares
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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(13) Percent of Class Represented by Amount in Row (11)
5.7%
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(14) Type of Reporting Person*
IN
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*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP No. 23332K 10 6
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Harmony Management, Inc.
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /X/
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(3) SEC Use Only
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(4) Source of Funds*
OO
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting Power
Beneficially Owned 1,332,704 exercised by Davidi Gilo as sole
by Each Reporting shareholder and President
Person with --------------------------------------------------
(8) Shared Voting Power
0
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(9) Sole Dispositive Power
1,332,704 exercised by Davidi Gilo as sole
stockholder and President
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(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,332,704 exercised by Davidi Gilo as sole stockholder and President
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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(13) Percent of Class Represented by Amount in Row (11)
3.3%
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(14) Type of Reporting Person*
CO
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*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP No. 23332K 10 6
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Davidi and Sandra Gilo Trust Dated January 18, 1991
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /X/
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(3) SEC Use Only
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(4) Source of Funds*
OO
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting Power
Beneficially Owned 202,709 exercised by Davidi Gilo as trustee
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
0
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(9) Sole Dispositive Power
202,709 exercised by Davidi Gilo as trustee
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(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
202,709 exercised by Davidi Gilo as trustee
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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(13) Percent of Class Represented by Amount in Row (11)
0.5%
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(14) Type of Reporting Person*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP No. 23332K 10 6
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Gilo Family Foundation
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /X/
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(3) SEC Use Only
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(4) Source of Funds*
OO
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting Power
Beneficially Owned 100,000 exercised by Davidi Gilo as President
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
0
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(9) Sole Dispositive Power
100,000 exercised by Davidi Gilo as President
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(10) Shared Dispositive Power
0
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
100,000 exercised by Davidi Gilo as President
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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(13) Percent of Class Represented by Amount in Row (11)
0.3%
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(14) Type of Reporting Person*
CO
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*SEE INSTRUCTION BEFORE FILLING OUT!
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SCHEDULE 13D
The following statement on Schedule 13D (the "Statement") with respect
to the common stock, par value $0.001 per share (the "Common Stock") of DSP
Communications, Inc. (the "Issuer") is being filed on behalf of Harmony
Management, Inc. ("Harmony"), the Davidi and Sandra Gilo Trust dated
January 18, 1991 (the "Trust"), the Gilo Family Foundation (the "Foundation"),
and Davidi Gilo, individually and as sole stockholder and President of Harmony,
as trustee of the Trust, and as President of the Foundation.
ITEM 1. SECURITY AND ISSUER
This Statement relates to the Common Stock of the Issuer, DSP
Communications, Inc. The Issuer's principal executive offices are
located at 20300 Stevens Creek Blvd., Suite 465, Cupertino, CA
95014.
ITEM 2. IDENTITY AND BACKGROUND
1. (a) This Statement is being filed on behalf of Davidi Gilo, Harmony
Management, Inc., the Davidi and Sandra Gilo Trust dated
January 18, 1991, and the Gilo Family Foundation.
(b) The address of Mr. Gilo, Harmony, the Trust and the Foundation is
100 Why Worry Lane, Woodside, CA 94062.
(c) Mr. Gilo's principal employment is with the Issuer where he
currently acts as an advisor to the Chairman of the Board. The
address of the Issuer is 20300 Stevens Creek Boulevard, 4th Floor,
Cupertino, CA 95014.
(d)-(e) Mr. Gilo, Harmony, the Trust and the Foundation have not, during
the last five years, been convicted in any criminal proceeding
(excluding traffic violations or similar misdemeanors), nor have
Mr. Gilo, Harmony, the Trust and the Foundation, during such
period, been a party to any civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of
such proceeding been subject to any judgment, decree or final
order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
(f) Mr. Gilo is a citizen of the United States. Harmony is a
corporation organized under California law, and the Foundation is
a non-profit foundation organized under California law.
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ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
661,748 of the shares held by Mr. Gilo were purchased by Mr. Gilo in
October 1997 upon exercises of employee stock options held by Mr.
Gilo, for an aggregate purchase price of $5,209,474. The purchase
price for these shares was paid by a loan to Mr. Gilo from Bear,
Stearns & Co., Inc.
155,241 of the shares held by the Trust were purchased by Mr. Gilo in
March 1997 upon exercises of employee stock options held by Mr. Gilo,
for an aggregate purchase price of $601,559. The purchase price for
these shares was paid with Mr. Gilo's personal funds. The shares were
subsequently transferred to the Trust by Mr. Gilo, as settlor of the
Trust, in a gift transaction.
1,500,172 shares held by Mr. Gilo, Harmony, the Trust and the
Foundation were acquired by Mr. Gilo in 1992 from the Issuer's
predecessor corporation, at a purchase price of approximately $.059
per share. The purchase price for these shares was paid with Mr.
Gilo's personal funds. 1,332,704 of these shares were subsequently
transferred to Harmony, a corporation wholly owned by Mr. Gilo.
47,468 of these shares were subsequently transferred to the Trust by
Mr. Gilo, as settlor of the Trust, in a gift transaction, and 100,000
of these shares were subsequently transferred by Mr. Gilo to the
Foundation in a gift transaction.
ITEM 4. PURPOSE OF THE TRANSACTION.
Mr. Gilo, Harmony, the Trust and the Foundation each acquired the
shares of Common Stock identified in this Statement for investment
purposes. Mr. Gilo, Harmony, the Trust and the Foundation have no
proposal or plan which would result in any of the transactions or
events enumerated in paragraphs (a) through (j) of this Item 4.
Notwithstanding the foregoing, Mr. Gilo, Harmony, the Trust and the
Foundation each reserves the right at any time or from time to time to
acquire additional shares of the capital stock of the Issuer or to
dispose of any shares of capital stock of the Issuer in open market or
privately negotiated transactions on terms deemed by them to be
appropriate.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As of the date of this Statement: (i) Mr. Gilo owns individually an
aggregate of 681,748 shares of the Issuer's Common Stock,
representing 1.7% of the shares outstanding; (ii) Harmony owns an
aggregate of 1,332,704 shares of the Issuer's Common Stock,
representing 3.3% of the shares outstanding; (iii) the Trust owns an
aggregate of 202,709 shares of the Issuer's Common Stock, representing
0.5% of the shares outstanding; and (iv) the Foundation owns an
aggregate of 100,000 shares of the Issuer's Common Stock, representing
0.3% of the shares outstanding. Accordingly, Mr. Gilo, individually
and as the sole shareholder and President of Harmony, as trustee of
the Trust, and as President of the Foundation, is deemed
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to beneficially own an aggregate of 2,317,161 of the outstanding shares
of the Issuer's Common Stock, representing 5.7% of the outstanding
shares, based on 40,658,016 shares of Common Stock outstanding as of
November 6, 1997.
(b) Mr. Gilo, individually and as the sole shareholder and President of
Harmony, as trustee of the Trust, and as President of the Foundation,
has sole voting and dispositive power with respect to the 2,317,161
shares of the Issuer's Common Stock identified in this Statement.
(c) On October 27, 1997, Mr. Gilo exercised employee stock options to
purchase an aggregate of 661,748 shares of the Issuer's Common Stock.
51,748 of these shares had an exercise price of $3.875 per share,
400,000 of these shares had an exercise price of $6.813 per share, and
210,000 of these shares had an exercise price of $10.875 per share.
Within the past 60 days, Harmony, the Trust and the Foundation have
not effected any transactions in the Issuer's Common Stock.
(d) No person other than Mr. Gilo, Harmony, the Trust or the Foundation,
has the right to receive or the power to direct the receipt of
dividends from, or the proceeds from the sale of, any of the shares of
the Issuer's Common Stock owned or sold by Mr. Gilo, Harmony, the
Trust, or the Foundation, respectively, except as any such rights may
be deemed to be held by Mr. Gilo's wife, Shamaya Gilo, under any
applicable community property laws.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Mr. Gilo, Harmony, the Trust and the Foundation are not parties to any
contract, arrangement, understanding or relationship with any other
person, including, without limitation, the Issuer, with respect to the
securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement.
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: November 6, 1997
/s/ Davidi Gilo
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DAVIDI GILO
HARMONY MANAGEMENT, INC.
By: /s/ Davidi Gilo
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Davidi Gilo, President
THE DAVIDI AND SANDRA GILO TRUST
By: /s/ Davidi Gilo
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Davidi Gilo, Trustee
GILO FAMILY FOUNDATION
By: /s/ Davidi Gilo
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Davidi Gilo, President
<PAGE>
EXHIBIT INDEX
No. Description Page
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1. Joint Filing Agreement.
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EXHIBIT 1
JOINT FILING AGREEMENT
The undersigned hereby consent to the joint filing by any of them of a
Statement on Schedule 13D and any amendments thereto, whether heretofore or
hereafter filed, relating to the common stock, par value $0.001 per share, of
DSP Communications, Inc.
Dated: November 6, 1997
/s/ Davidi Gilo
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DAVIDI GILO
HARMONY MANAGEMENT, INC.
By: /s/ Davidi Gilo
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Davidi Gilo, President
THE DAVIDI AND SANDRA GILO TRUST
By: /s/ Davidi Gilo
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Davidi Gilo, Trustee
GILO FAMILY FOUNDATION
By: /s/ Davidi Gilo
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Davidi Gilo, President
