Actions Semiconductor Reports Fourth Quarter and Fiscal Year 2011 Results

Annual Revenue Increases 26% Year-Over-Year

Jan 19, 2012, 16:10 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, Jan. 19, 2012 /PRNewswire-Asia/ -- 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 fourth quarter and fiscal year ended December 31, 2011.

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

Revenue for the fourth quarter of 2011 was $12.3 million, as compared to revenue of $15.3 million for the third quarter of 2011, and $10.7 million for the fourth quarter of 2010. Revenue for the year ended December 31, 2011 was $47.5 million, compared to revenue of $37.6 million for the year ended December 31, 2010.

Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2011 was $0.11 million or $0.00 per ADS. This compares to net income attributable to Actions Semiconductor's shareholders of $2.6 million or $0.04 per ADS, for the third quarter of 2011, and net loss attributable to Actions Semiconductor's shareholders of $0.15 million or $0.00 per ADS, for the fourth quarter of 2010. Net income for the full year of 2011 was $3.1 million, compared to net income of $0.4 million reported for the full year 2010. Net income per ADS was $0.04 for 2011, compared to net income per ADS of $0.01 reported for the full year 2010.

Actions Semiconductor reported gross margin of 37.6% for the fourth quarter of 2011, compared to gross margin of 40.6% for the third quarter of 2011, and 37.1% for the fourth quarter of 2010. The Company ended the year with $33.2 million in cash and cash equivalents. Trading securities, and marketable securities, current and non-current, were $187.4 million at the end of the year.

Since the share repurchase program commenced in 2007, the Company has invested approximately $41.4 million in repurchasing its shares. As of December 31, 2011, approximately 17.7 million American Depositary Shares (ADSs) were repurchased.

"Our revenue for the fourth quarter was in line with expectations and reflects the current demand environment in our end markets," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor. "We were pleased to see an increase in shipments of our higher end solutions including our high definition (HD) products.

"In 2011, we made progress on a number of financial metrics, growing revenues by 26% and improving profitability. We maintained our strong leadership position in mainstream portable video and portable audio products, such as automotive/boom box products, while gaining traction in new high end market categories, such as gaming and HD products. Importantly, we believe we have developed a solid platform for continued growth in targeting high end applications.

"As we enter 2012, we expect to maintain a leading position in our established end markets with our current audio and video product portfolio. At the same time, we will focus on advancing our product mix to include even more high end, network enabled devices," 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 first quarter of fiscal year 2012 ending March 31, 2012, Actions Semiconductor estimates revenue in the range of $9 to $10 million, gross margin of approximately 38%.

Conference Call Details

Actions Semiconductor's fourth quarter and fiscal year 2011 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, January 19, 2012. To participate in the live call, analysts and investors should dial 877-941-1427 (within U.S.) or 480-629-9664 (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 January 29, 2012 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4504471.

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 December 31,

At September 30,

At December 31,

2011

2011

2010

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets:

 Cash and cash equivalents

33,207

70,653

42,872

 Time deposits

-

-

34

 Marketable securities ($nil, $nil and $14,296 carried at fair value as of  December 31, 2011, September 30, 2011 and December 31, 2010,  respectively)

186,890

136,321

164,336

 Trading securities

530

526

535

 Accounts receivable, net

2,794

2,541

1,844

 Amount due from a related party

9

321

559

 Amount due from equity method investees

64

81

104

 Inventories

7,477

8,353

4,832

 Prepaid expenses and other current assets

1,675

2,874

3,242

 Deferred tax assets

430

318

399

Total current assets

233,076

221,988

218,757

 Investment in equity method investees

14,246

14,578

6,401

 Other investments

17,334

17,331

2,764

 Marketable securities

-

15,264

24,831

 Rental deposits

49

49

40

 Property, plant and equipment, net

32,939

31,244

24,604

 Land use right

1,593

1,598

1,554

 Acquired intangible assets, net

9,859

4,959

4,318

 Deposit paid for acquisition of intangible assets

-

1,100

2,408

 Deferred tax assets

27

43

88

 Goodwill

-

-

468

TOTAL ASSETS

309,123

308,154

286,233

LIABILITIES AND EQUITY

Current liabilities:

 Accounts payable

4,374

7,491

2,850

 Accrued expenses and other current liabilities

8,605

5,270

7,247

 Short-term bank loan

12,000

12,000

-

 Other liabilities

1,954

1,712

2,502

 Income tax payable

189

451

140

 Deferred tax liabilities

295

239

446

Total current liabilities

27,417

27,163

13,185

Other liabilities

458

-

83

Payable for acquisition of intangible assets

153

-

-

Deferred tax liabilities

2,840

2,786

2,286

Total liabilities

30,868

29,949

15,554

Equity:

Ordinary shares

1

1

1

Additional paid-in capital

20,600

20,945

24,252

Accumulated other comprehensive income

32,589

32,081

24,420

Retained earnings

225,086

225,198

222,032

Total Actions Semiconductor Co., Ltd. shareholders' equity

278,276

278,225

270,705

Noncontrolling interest

(21)

(20)

(26)

Total equity

278,255

278,205

270,679

TOTAL LIABILITIES AND EQUITY

309,123

308,154

286,233

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

Year ended

Year ended

December 31,

December 31,

December 31,

December 31,

2011

2010

2011

2010

(unaudited)

(unaudited)

(unaudited)

 (audited)  

Revenues:

 Third-parties:

  System-on-a-chip products

12,036

8,731

41,385

29,939

  Semiconductor product testing services

58

44

317

151

12,094

8,775

41,702

30,090

 Related-parties:

  System-on-a-chip products

199

1,960

5,783

7,495

 Total revenues

12,293

10,735

47,485

37,585

Cost of revenues:

 Third-parties:

  System-on-a-chip products

(7,513)

(5,596)

(25,454)

(18,521)

  Semiconductor product testing services

(34)

(24)

(176)

(81)

(7,547)

(5,620)

(25,630)

(18,602)

 Related-parties:

  System-on-a-chip products

(127)

(1,127)

(3,367)

(4,325)

 Total cost of revenues

(7,674)

(6,747)

(28,997)

(22,927)

Gross profit

4,619

3,988

18,488

14,658

Other operating income

227

22

1,523

966

Operating expenses:

 Research and development

(5,984)

(4,425)

(22,086)

(17,325)

 General and administrative

(2,468)

(2,204)

(8,786)

(8,125)

 Selling and marketing

(307)

(420)

(1,195)

(1,208)

Impairment on goodwill and intangible assets

-

-

(888)

Total operating expenses

(8,759)

(7,049)

(32,955)

(26,658)

Loss from operations

(3,913)

(3,039)

(12,944)

(11,034)

Other income

270

794

4,261

2,348

Dividend income from an other investment

457

-

889

-

Investment income from an other investment

-

-

268

-

Fair value change in trading securities

1

1

4

(2)

Gain on disposal of other investment

-

-

-

137

Interest income

3,494

2,503

12,668

9,608

Interest expense

(52)

-

(144)

-

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

257

259

5,002

1,057

Income tax expense

(33)

(86)

(830)

(422)

Share of net loss of equity method investees

(337)

(357)

(1,113)

(781)

Remeasurement gain on equity interest on acquisition of a subsidiary

-

-

-

494

Net  (loss) income

(113)

(184)

3,059

348

Less: Net loss (income) attributable to noncontrolling interest

1

32

(5)

36

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

(112)

(152)

3,054

384

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

Basic (per share)

(0.000)

(0.000)

0.007

0.001

Diluted (per share)

(0.000)

(0.000)

0.007

0.001

Basic (per ADS)

(0.002)

(0.002)

0.044

0.005

Diluted (per ADS)

(0.002)

(0.002)

0.042

0.005

Weighted-average shares used in computation:

Basic

414,831,816

430,634,573

417,116,080

438,401,072

Diluted

414,831,816

430,634,573

432,599,640

454,546,987

Weighted-average ADS used in computation :

Basic

69,138,636

71,772,429

69,519,347

73,066,845

Diluted

69,138,636

71,772,429

72,099,940

75,757,831

Note: Stock compensation recorded in each

expense classification above is as follows:

 Research and development

475

(159)

1,449

1,067

 General and administrative

139

(64)

393

404

 Selling and marketing

19

(12)

68

59

 Cost of revenues

1

2

18

2

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Year ended

Year ended

December 31,

December 31,

December 31,

2011

2011

2010

(unaudited)

(unaudited)

 (audited)  

Operating activities:

Net (loss) income  

(113)

3,059

348

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

 Operating activities:

 Depreciation of property, plant and equipment

593

2,109

1,929

 Land use right

9

36

33

 Allowance for doubtful accounts receivable

-

-

(101)

 Amortization of acquired intangible assets

594

1,803

1,901

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

-

(995)

(225)

 Write down of inventories

-

232

378

 Loss on disposal of property, plant and equipment

25

28

42

 Loss on intangible of intangible assets

-

4

-

 Gain on disposal of other investment

-

-

(137)

 Impairment loss recognised in respect of goodwill

-

420

-

 Impairment loss recognised in respect of Intangible assets

-

468

-

 Share of net loss of equity method investees

337

1,113

781

 Remeasurement gain on equity interest on acquisition of a subsidiary

-

-

(494)

 Equity compensation

634

1,928

1,532

 Fair value change in trading securities

(1)

(4)

2

 Deferred taxes

14

428

422

 Changes in operating assets and liabilities:

   Proceeds from disposal of trading securities

-

-

5

   Purchase of trading securities

-

-

(470)

   Accounts receivable

(253)

(947)

150

   Amount due from a related party

312

550

(39)

   Inventories

896

(2,632)

222

   Amount due from an equity method investee

17

47

410

   Prepaid expenses and other current assets

1,209

1,736

(1,326)

   Accounts payable

(3,135)

1,310

(32)

   Accrued expenses and other current liabilities

422

4,391

(1,680)

   Income tax payable

(263)

45

14

   Deposit paid for acquisition of land use right

-

-

(901)

   Rental deposit paid

-

(8)

(1)

Net cash provided by operating activities

1,297

15,121

2,763

Investing activities:

 Investment in an equity method investee

-

(9,676)

(5,606)

 Proceeds from disposal of other investments

-

(13,727)

1,251

 Proceeds from redemption of marketable securities

2,237

278,568

77,657

 Purchase of marketable securities

(37,334)

(272,240)

(100,498)

 Proceeds from disposal of property, plant and equipment

-

34

21

 Purchase of property, plant and equipment

(1,691)

(14,329)

(8,851)

 Purchase of intangible assets

(1,869)

(3,178)

(1,762)

 Deposit paid for acquisition of intangible assets

-

-

(2,408)

 Decrease in time deposits

-

34

28

 Acquisition of a subsidiary, net of cash and cash equivalent acquired

-

-

(937)

 Disposal of a subsidiary, net of cash and cash equivalent disposed

-

-

(10,110)

Net cash used in investing activities

(38,657)

(34,514)

(51,215)

Financing activities:

 Raise of short-term bank loans

-

12,000

-

 Receipt of amount due from a former subsidiary

-

-

11,020

 Advance subsidy from local authorities of Shenzhen and Zhuhai, the PRC

695

711

302

 Issuance of ordinary shares for share option plan

207

671

316

 Repurchase of ordinary shares

(1,186)

(6,251)

(9,019)

Net cash (used in) provided by financing activities

(284)

7,131

2,619

Net decrease in cash and cash equivalents

(37,644)

(12,262)

(45,833)

Cash and cash equivalents at the beginning of the period

70,653

42,872

87,706

Effect of exchange rate changes on cash

198

2,597

999

Cash and cash equivalents at the end of the period

33,207

33,207

42,872

SOURCE Actions Semiconductor Co., Ltd.



RELATED LINKS

http://www.actions-semi.com