Actions Semiconductor Reports First Quarter 2012 Results

Revenue Increases 15% Year-Over-Year

May 08, 2012, 16:10 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, May 8, 2012 /PRNewswire-Asia-FirstCall/ -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS), one of China's leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (SoC) solutions for portable consumer electronics, today reported its financial results for the first quarter ended March 31, 2012.

All financial results are reported on a U.S. GAAP basis.

Revenue for the first quarter of 2012 was $10.7 million, as compared to revenue of $12.3 million for the fourth quarter of 2011, and $9.4 million for the first quarter of 2011. 

Net loss attributable to Actions Semiconductor's shareholders for the first quarter of 2012 was $0.65 million or $0.01 per ADS. This compares to net loss attributable to Actions Semiconductor's shareholders of $0.11 million or $0.00 per ADS, for the fourth quarter of 2011, and net income attributable to Actions Semiconductor's shareholders of $5 thousand or $0.00 per ADS, for the first quarter of 2011. 

Actions Semiconductor reported gross margin of 34.9% for the first quarter of 2012, compared to gross margin of 37.6% for the fourth quarter of 2011, and 39.1% for the first quarter of 2011. The Company ended the first quarter with $33.8 million in cash and cash equivalents.  Trading securities, and marketable securities, current and non-current, were $187.8 million at the end of the first quarter. 

Since the share repurchase program commenced in 2007, the Company has invested approximately $42.5 million in repurchasing its shares.  As of March 31, 2012, approximately 18.3 million American Depositary Shares (ADSs) were repurchased.

"We were pleased to deliver better than expected revenue for the first quarter despite the typical seasonality and fewer working days in the quarter," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.  "While we saw our product mix shift to a higher percentage of revenue from our more value-oriented solutions such as our automotive products, we maintained our leading market share position in higher end HD products, mainstream portable video and portable audio products."

"We are enthusiastic about our recently launched ATM701x product family targeting the tablet market.  The product has been well received to date.  We commenced volume shipments in May with several customers and expect to begin seeing a contribution from this new product in the second half of 2012," concluded Dr. Zhou.    

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.

For the second quarter of fiscal year 2012 ending June 30, 2012, Actions Semiconductor estimates revenue in the range of $12 to $13 million, gross margin of approximately 36%.

Conference Call Details

Actions Semiconductor's first quarter 2012 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, May 8, 2012. To participate in the live call, analysts and investors should dial 877-941-2068 (within U.S.) or 480-629-9712 (outside U.S.) at least ten minutes prior to the call. Actions Semiconductor will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's website at www.actions-semi.com.  An audio replay of the call will be available to investors through May 18, 2012 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4533864.

About Actions Semiconductor

Actions Semiconductor is one of China's leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (SoC) solutions for portable consumer electronics. Actions Semiconductor products include SoCs, firmware, software, solution development kits, as well as detailed specifications of other required components. Actions Semiconductor also provides total product and technology solutions that allow customers to quickly introduce new portable consumer electronics to the mass market in a cost effective way. The company is headquartered in Zhuhai, China, with offices in Beijing, Shanghai, and Shenzhen. For more information, please visit the Actions Semiconductor website at http://www.actions-semi.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this release that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements concerning signs of positive indicators in the industry for next year, growth in the market driven by continued proliferation of applications within the PMP market and incremental rebound of overall demand for these products, Actions Semiconductor's belief that it is positioned to capture some upside from these trends, and Actions Semiconductor's future expectations with respect to revenue, gross margin, operating expenses and share-based compensation expense.  Actions Semiconductor uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are estimates reflecting current assumptions, expectations and projections about future events and involve significant risks, both known and unknown, uncertainties and other factors that may cause Actions Semiconductor's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, customers' cancellation or modification of their orders; our failure to accurately forecast demand for our products; the loss of, or a significant reduction in orders from, any of our significant customers; fluctuations in our operating results; our inability to develop and sell new products; defects in or failures of our products; the expense and uncertainty involved in our customer design-win efforts; the financial viability of the distributors of our products; consumer demand; worldwide economic and political conditions; fluctuations in our costs to manufacture our products; our reliance on third parties to manufacture, test, assemble and ship our products; our ability to retain and attract key personnel; our ability to compete with our competitors; and our ability to protect our intellectual property rights and not infringe the intellectual property rights of others. Other factors that may cause our actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect our prospects in general are described in our filings with the Securities and Exchange Commission, including our most recently filed Forms F-1, 20-F and 6-Ks. Other unknown or unpredictable factors also could have material adverse effects on Actions Semiconductor's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as required by law, Actions Semiconductor undertakes no obligation and does not intend to update or revise any forward-looking statement to reflect subsequent events or changed assumptions or circumstances.

Investor Contacts:

Lisa Laukkanen                                      Edward Chen The Blueshirt Group                                Investor Relations at Actions Semiconductor lisa@blueshirtgroup.com                         edward@actions-semi.com 415-217-4967                                         +86-756-3392353*1110

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands of U.S. dollars)

At March 31,

At December 31,

At March 31,

2012

2011

2011

(unaudited)

(audited)

(unaudited)

ASSETS

Current assets:

  Cash and cash equivalents

33,795

33,207

111,871

  Marketable securities

187,223

186,890

80,931

  Trading securities

545

530

543

  Accounts receivable, net of allowance for doubtful accounts of $621, $621 and $621 as of March31,2012, December 31,2011 and March 31,2011, respectively

1,869

2,794

1,831

  Amount due from a related party

34

9

1,240

  Amount due from an equity method investee

114

64

90

  Inventories

6,981

7,477

5,336

  Prepaid expenses and other current assets

1,402

1,675

2,561

  Deferred tax assets

403

430

231

Total current assets

232,366

233,076

204,634

  Investments in equity method investees

14,208

14,246

7,666

  Other investments 

17,340

17,334

17,305

  Marketable securities (nil, nil and $15,252 carried at fair value as of March 31 2012, December 31, 2011 and March 31, 2011, respectively)

-

-

25,166

  Rental deposits

52

49

40

  Property, plant and equipment, net

33,034

32,939

27,280

  Land use right

1,595

1,593

1,566

  Acquired intangible assets, net

9,293

9,859

5,721

  Deposit paid for acquisition of intangible assets

-

-

1,100

  Deferred tax assets

11

27

73

  Goodwill

-

-

468

TOTAL ASSETS

307,899

309,123

291,019

LIABILITIES AND EQUITY

Current liabilities:

  Accounts payable

5,007

4,374

4,371

  Accrued expenses and other current liabilities

5,543

8,605

4,862

  Short-term bank loan

12,000

12,000

6,000

  Other liabilities

1,999

1,954

2,479

  Income tax payable

357

238

240

  Deferred tax liabilities

446

295

265

Total current liabilities

25,352

27,466

18,217

Other liabilities

461

458

-

Payable for acquisition of intangible assets

153

153

-

Deferred tax liabilities

2,912

2,840

2,438

Total liabilities

28,878

30,917

20,655

Equity:

 Ordinary shares

1

1

1

 Additional paid-in capital

20,806

20,600

21,695

 Accumulated other comprehensive income

33,851

32,589

26,660

 Retained earnings

224,388

225,037

222,037

Total Actions Semiconductor Co., Ltd. shareholders' equity

279,046

278,227

270,393

Non-controlling interest

(25)

(21)

(29)

Total equity

279,021

278,206

270,364

TOTAL LIABILITIES AND EQUITY

307,899

309,123

291,019

 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands of U.S. dollars, except number of shares and per share amounts)

Three months ended

Three months ended

Three months ended

March 31,

December 31,

March 31,

2012

2011

2011

(unaudited)

(unaudited)

(unaudited)

Revenues:

  Third-parties:

   System-on-a chip products

10,503

12,036

7,024

   Semiconductor product testing services

61

58

80

10,564

12,094

7,104

  Related-parties:

   System-on-a chip products

171

199

2,262

  Total revenues

10,735

12,293

9,366

Cost of revenues:

  Third-parties:

   System-on-a chip products

(6,836)

(7,513)

(4,349)

   Semiconductor product testing services

(38)

(34)

(42)

(6,874)

(7,547)

(4,391)

  Related-parties:

   System-on-achip products

(114)

(127)

(1,309)

  Total cost of revenues

(6,988)

(7,674)

(5,700)

Gross profit

3,747

4,619

3,666

Other operating income

72

227

217

Operating expenses:

  Research and development

(5,782)

(5,984)

(5,057)

  General and administrative

(1,776)

(2,468)

(1,695)

  Selling and marketing

(249)

(307)

(265)

Total operating expenses

(7,807)

(8,759)

(7,017)

Loss from operations

(3,988)

(3,913)

(3,134)

Other income

539

270

1,111

Dividend income from an other investment

-

457

-

Fair value change in trading securities

1

1

1

Interest income

3,447

3,494

2,832

Interest expense

(61)

(52)

(19)

(Loss) income before income taxes, equity in net loss of equity method investees and noncontrolling interest

(62)

257

791

Income tax expense 

(536)

(33)

(258)

Equity in net loss of equity method investees

(55)

(337)

(531)

Net  (loss) income

(653)

(113)

2

Add: Net loss attributable to noncontrolling interest

4

1

3

Net  (loss) income attributable to Actions Semiconductor Co.,Ltd. Shareholders

(649)

(112)

5

Net (loss) income attributable to Actions Semiconductor Co.,Ltd. Shareholders

Net (loss) income per share:Basic

(0.00157)

(0.00027)

0.00001

Net (loss) income per share:Diluted 

(0.00157)

(0.00027)

0.00001

Basic (per ADS)

(0.00941)

(0.00162)

0.00007

Diluted (per ADS)

(0.00941)

(0.00162)

0.00007

Weighted-average shares used in computation:

Basic

413,921,007

415,280,497

423,324,265

Diluted

413,921,007

415,280,497

440,270,706

Weighted-average ADS used in computation :

Basic

68,986,835

69,213,416

70,554,044

Diluted

68,986,835

69,213,416

73,378,451

Note: Stock compensation recorded in each

expense classification above is as follows:

  Research and development

354

475

447

  General and administrative

98

139

123

  Selling and marketing

15

19

24

  Cost of revenues

6

1

5

 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Three months ended

Three months ended

March  31,

December 31,

March  31,

2012

2011

2011

(unaudited)

(unaudited)

(unaudited)

Operating activities:

Net (loss) income  

(653)

(113)

2

Adjustments to reconcile net (loss) income to net cash provided by

  Operating activities:

  Depreciation of property, plant and equipment

592

593

463

  Amortization of land use right

9

9

9

  Amortization of acquired intangible assets

706

594

402

  Utilization of subsidy from local authorities of Zhuhai, the People's Republic of China the ("PRC")

-

-

(157)

  Write down of inventories

77

-

61

  (Gain) loss on disposal of property, plant and equipment 

(18)

25

-

  Share of net loss of equity method investees

55

337

531

  Share-based  compensation

473

634

599

  Fair value change in trading securities

(1)

(1)

(1)

  Deferred taxes

266

14

153

  Changes in operating assets and liabilities:

    Accounts receivable

926

(253)

13

    Amount due from a related party

(25)

312

(681)

    Inventories

461

896

(515)

    Amount due from an equity method investee

(50)

17

17

    Prepaid expenses and other current assets

284

1,209

739

    Accounts payable

608

(3,135)

1,485

    Accrued expenses and other current liabilities

(3,111)

422

(445)

    Income tax payable

118

(263)

99

Net cash provided by operating activities

717

1,297

2,774

Investing activities:

  Investment in an equity method investee

-

-

(2,600)

  Purchase of other investments

-

-

(13,727)

  Proceeds from redemption of marketable securities

19,655

2,237

106,833

  Purchase of marketable securities

(19,279)

(37,334)

(22,249)

  Proceeds from disposal of property, plant and equipment

22

-

-

  Purchase of property, plant and equipment

(472)

(1,691)

(4,317)

  Purchase of intangible assets

(75)

(1,869)

(989)

  Decrease in time deposits 

-

-

34

Net cash (used in) provided by investing activities

(149)

(38,657)

62,985

Financing activities:

  Raise of short-term bank loans

-

-

6,000

  Advance subsidy from local authorities of Zhuhai, the PRC

32

695

16

  Proceeds from exercise of stock option

759

207

134

  Repurchase of ordinary shares

(1,025)

(1,186)

(3,290)

Net cash (used in) provided by financing activities

(234)

(284)

2,860

Net increase (decrease) in cash and cash equivalents

334

(37,644)

68,619

Cash and cash equivalents at the beginning of the period

33,207

70,653

42,872

Effect of exchange rate changes on cash

254

198

380

Cash and cash equivalents at the end of the period

33,795

33,207

111,871

-

-

 

SOURCE Actions Semiconductor Co., Ltd.



RELATED LINKS

http://www.actions-semi.com