Actions Semiconductor Reports First Quarter 2013 Results First Quarter Revenue Up 53% Year-Over-Year

ZHUHAI, China, May 7, 2013 /PRNewswire/ -- 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, 2013.

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

Revenue for the first quarter of 2013 was $16.4 million, as compared to revenue of $15.2 million for the fourth quarter of 2012, and $10.7 million for the first quarter of 2012. 

Net income attributable to Actions Semiconductor's shareholders for the first quarter of 2013 was $0.4 million or $0.01 per American Depositary Shares ("ADS").  This compares to net loss attributable to Actions Semiconductor's shareholders of $1.7 million or $0.02 per ADS, for the fourth quarter of 2012, and net loss attributable to Actions Semiconductor's shareholders of $0.6 million or $0.01 per ADS, for the first quarter of 2012.  Included in net loss for the fourth quarter of 2012 was $2.5 million relating to an other-than-temporary impairment loss on investments. 

Actions Semiconductor reported gross margin of 36.2% for the first quarter of 2013, compared to gross margin of 32.1% for the fourth quarter of 2012, and 34.9% for the first quarter of 2012. The Company ended the first quarter with $72.8 million in cash and cash equivalents, together with time deposits.  Trading securities and marketable securities, current and non-current, were $150.9 million at the end of the first quarter. 

Since the share repurchase program commenced in 2007, the Company has invested approximately $47.1 million in repurchasing its shares.  As of March 31, 2013, approximately 20.9 million American Depositary Shares (ADSs) were repurchased. 

"Our better-than-expected first quarter results were driven by sales of our first OWL series chipset," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.  "We are extremely pleased with the traction we have gained in the short time since we launched our new product family for the tablet market.  Our steep sales ramp in this new product category reflects our ability to leverage our core strengths in multimedia solutions and our established channel relationships."

"We recently launched the second chipset in our OWL series, delivering advanced multimedia capabilities to entry level tablets and have plans to further expand our product offering to cover the full spectrum of the whitebox tablet market. 

"While we experienced normal seasonality during the quarter, particularly across our audio product portfolio, we were pleased to see relatively healthy demand for our video products.  We remain excited about the growth prospects in the whitebox tablet market and believe our product portfolio addressing this market will be a significant growth driver for the Company for the remainder of the year," 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 2013 ending June 30, 2013, Actions Semiconductor estimates revenue in the range of $18.0 to $20.0 million and gross margin of approximately 36%.

Conference Call Details

Actions Semiconductor's first quarter of fiscal year 2013 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, May 7, 2013. To participate in the live call, analysts and investors should dial 877-941-4774 (within U.S.) or 480-629-9760 (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 17, 2013 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4614397.

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 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,


2013


2012


2012


(unaudited)


(audited)


(unaudited)

ASSETS






Current assets:






  Cash and cash equivalents

57,511


71,336


33,795

  Time deposits

15,322


10,000


-

  Marketable securities

139,520


130,721


187,223

  Trading securities

74


76


545

  Accounts receivable, net of allowance for doubtful accounts of nil, nil and

$621 as of March 31, 2013, December 31, 2012 and March 31, 2012

respectively

5,248


5,950


1,869

  Amount due from a related party

292


340


34

  Amount due from an equity method investee

36


79


114

  Inventories

16,961


11,979


6,981

  Prepaid expenses and other current assets

10,734


4,288


1,402

  Income tax recoverable

189


189


-

  Deferred tax assets

422


504


403

Total current assets

246,309


235,462


232,366







  Investments in equity method investees

14,262


14,329


14,208

  Other investments 

16,308


16,305


17,340

  Marketable securities

11,269


11,239


-

  Rental deposits

58


49


52

  Property, plant and equipment, net

31,876


32,321


33,034

  Land use right

1,579


1,584


1,595

  Acquired intangible assets, net

10,022


10,819


9,293

  Deferred tax assets

76


80


11

TOTAL ASSETS

331,759


322,188


307,899







LIABILITIES AND EQUITY






Current liabilities:






  Accounts payable

11,656


8,073


5,007

  Accrued expenses and other current liabilities

8,340


8,411


5,543

  Short-term bank loans

25,500


20,500


12,000

  Other liabilities

2,351


2,056


1,999

  Income tax payable

135


49


357

  Deferred tax liabilities

607


534


446

Total current liabilities

48,589


39,623


25,352







Other liabilities

13


13


461

Payable for acquisition of intangible assets

128


603


153

Deferred tax liabilities

3,299


3,189


2,912

Total liabilities

52,029


43,428


28,878

Equity:






 Ordinary shares

1


1


1

 Additional paid-in capital

20,257


20,202


20,806

 Accumulated other comprehensive income

36,246


35,751


33,851

 Retained earnings

223,256


222,835


224,388

Total Actions Semiconductor Co., Ltd. shareholders' equity

279,760


278,789


279,046

Non-controlling interest

(30)


(29)


(25)

Total equity

279,730


278,760


279,021

TOTAL LIABILITIES AND EQUITY

331,759


322,188


307,899








-


-


-


 

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,





2013


2012


2012





(unaudited)


(unaudited)


(unaudited)












Revenues:









  Third-parties:









   System-on-a-chip products


15,769


14,314


10,503



   Semiconductor product testing services


17


28


61





15,786


14,342


10,564



  Related-parties:









   System-on-a-chip products


629


817


171



  Total revenues


16,415


15,159


10,735



Cost of revenues:









  Third-parties:









   System-on-a-chip products


(10,063)


(9,697)


(6,836)



   Semiconductor product testing services


(5)


(15)


(38)





(10,068)


(9,712)


(6,874)



  Related-parties:









   System-on-a-chip products


(399)


(587)


(114)



  Total cost of revenues


(10,467)


(10,299)


(6,988)



Gross profit


5,948


4,860


3,747



Other operating income


74


136


72



Operating expenses:









  Research and development


(6,022)


(6,195)


(5,782)



  General and administrative


(1,977)


(2,660)


(1,776)



  Selling and marketing


(495)


(364)


(249)



Total operating expenses


(8,494)


(9,219)


(7,807)



Loss from operations


(2,472)


(4,223)


(3,988)



Other income


220


1,674


539



Fair value change in financial instruments


-


-


1



Other-than-temporary impairment loss on investments


-


(2,543)


-



Interest income


3,198


3,257


3,447



Interest expense


(100)


(63)


(61)



Income (loss) before income taxes, share of net loss of
  equity method investees and noncontrolling interest


846


(1,898)


(62)



Income tax (expense) credit 


(353)


370


(536)



Equity in net loss of equity method investees


(73)


(128)


(55)



Net income (loss) 


420


(1,656)


(653)



Less: Net loss attributable to noncontrolling interest


1


1


4



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


421


(1,655)


(649)












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









Basic (per share)


0.001


(0.004)


(0.002)












Diluted (per share)


0.001


(0.004)


(0.002)












Basic (per ADS)


0.006


(0.024)


(0.009)



Diluted (per ADS)


0.006


(0.024)


(0.009)












Weighted-average shares used in computation:









Basic


410,117,085


410,209,703


413,921,007



Diluted


419,861,988


410,209,703


413,921,007












Weighted-average ADS used in computation :









Basic


68,352,848


68,368,284


68,986,835



Diluted


69,976,998


68,368,284


68,986,835












Note: Share-based compensation recorded in each









expense classification above is as follows:









  Research and development


164


229


354



  General and administrative


50


67


98



  Selling and marketing


8


12


15



  Cost of revenues


-


-


6













 

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,



2013


2012


2012



(unaudited)


(unaudited)


(unaudited)

Operating activities:







Net income (loss) 


420


(1,656)


(653)

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







  Operating activities:







  Depreciation of property, plant and equipment


547


548


592

  Amortization of land use right


9


9


9

  Amortization of acquired intangible assets


866


871


706

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

-


(32)


-

  Write down of inventories


4


-


77

  Loss on disposal of property, plant and equipment 


7


5


(18)

  Impairment loss recognised in respect of other investments


-


2,543


-

  Share of net loss of equity method investees


73


128


55

  Share-based  compensation


222


308


473

  Fair value change in trading securities


-


-


(1)

  Deferred tax


269


(205)


266

  Changes in operating assets and liabilities:







    Accounts receivable


706


(3,098)


926

    Notes receivable


-


21


-

    Amount due from a related party


48


(182)


(25)

    Inventories


(4,958)


(77)


461

    Amount due from an equity method investee


43


35


(50)

    Prepaid expenses and other current assets


(1,435)


(56)


284

    Accounts payable


3,570


11


608

    Accrued expenses and other current liabilities


(563)


3,871


(3,111)

    Income tax recoverable


-


(189)


-

    Income tax payable


86


(70)


118

    Rental deposit paid


(9)


(5)


-

Net cash (usded in) provided by operating activities


(95)


2,780


717








Investing activities:







  Proceeds from redemption of marketable securities


7,354


32,995


19,655

  Purchase of marketable securities


(16,024)


-


(19,279)

  Proceeds from disposal of property, plant and equipment


-


-


22

  Purchase of property, plant and equipment


(24)


(168)


(472)

  Purchase of intangible assets


(42)


(3,086)


(75)

  Increase in time deposits 


(5,296)


(10,000)


-

Net cash (used in) provided by investing activities


(14,032)


19,741


(149)








Financing activities:







  Proceeds from short-term bank loans


-


8,500


-

  Advance subsidy from local authorities of Zhuhai, the PRC


290


167


32

  Proceeds from exercise of stock option


1,370


210


759

  Repurchase of ordinary shares


(1,537)


(836)


(1,025)

Net cash provided by (usded in) from financing activities


123


8,041


(234)








Net (decrease) increase in cash and cash equivalents


(14,004)


30,562


334








Cash and cash equivalents at the beginning of the period


71,336


40,044


33,207








Effect of exchange rate changes on cash


179


730


254

Cash and cash equivalents at the end of the period


57,511


71,336


33,795



-


-


-

SOURCE Actions Semiconductor Co., Ltd.



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