Actions Semiconductor Reports Fourth Quarter and Fiscal Year 2012 Results

Fourth Quarter Revenue Up 23% Year-Over-Year

Jan 24, 2013, 16:15 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, Jan. 24, 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 fourth quarter and fiscal year ended December 31, 2012.

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

Revenue for the fourth quarter of 2012 was $15.2 million, as compared to revenue of $15.8 million for the third quarter of 2012, and $12.3 million for the fourth quarter of 2011. 

Revenue for the year ended December 31, 2012 was $54.3 million, compared to $47.5 million for the year ended December 31, 2011.

Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2012 was $1.7 million or $0.02 per American Depositary Shares ("ADS").  Included in net loss for the fourth quarter was $2.5 million relating to an other-than-temporary impairment loss on investments.  This compares to net income attributable to Actions Semiconductor's shareholders of $0.66 million or $0.01 per ADS, for the third quarter of 2012, and net loss attributable to Actions Semiconductor's shareholders of $0.1 million or $0.002 per ADS, for the fourth quarter of 2011.   

Net loss attributable to Actions Semiconductor's shareholders for the year ended December 31, 2012 was $2.2 million or $0.03 per ADS.  This compares to net income attributable to Actions Semiconductor's shareholders of $3.0 million or $0.04 per ADS, for the year ended December 31, 2011. 

Actions Semiconductor reported gross margin of 32.1% for the fourth quarter of 2012, compared to gross margin of 37.6% for the third quarter of 2012, and 37.6% for the fourth quarter of 2011. The Company ended the fourth quarter with $81.3 million in cash and cash equivalents, together with time deposits.  Trading securities and marketable securities, current and non-current, were $142.0 million at the end of the fourth quarter. 

Since the share repurchase program commenced in 2007, the Company has invested approximately $45.6 million in repurchasing its shares.  As of December 31, 2012, approximately 20.2 million American Depositary Shares (ADSs) were repurchased. 

"We are pleased that our 2012 growth initiatives centered on penetrating the tablet market resulted in a 23% increase in revenue for the fourth quarter and a 14% increase in revenue for the full year," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.  "By leveraging our core technology strengths in multimedia, we were able to launch two new tablet product families in 2012 and recently announced that new tablets from two brand name customers feature Actions' OWL series ATM7029 chipset." 

"Heading into 2013, we are enthusiastic about the growth opportunities in the global whitebox tablet market.  Improved performance and user experience is driving demand in this market segment.  We believe the features for our second tablet product series, OWL, provide unprecedented levels of performance and power efficiency, and position the company for increasing traction in this growing market.  While we anticipate normal seasonality in our business in the first quarter, based on the demand we are experiencing and the current market dynamics, we expect the OWL product series to drive revenue growth of at least 25% for the full year 2013," 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 2013 ending March 31, 2013, Actions Semiconductor estimates revenue in the range of $12.0 to $13.0 million and gross margin of approximately 35%.

Conference Call Details Actions Semiconductor's fourth quarter and fiscal year 2012 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, January 24, 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 February 3, 2013 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4590866.

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. 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands of U.S. dollars)

At December 31,

2012

At September 30,

2012

At December 31,

2011

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets:

 Cash and cash equivalents

71,336

40,044

33,207

 Time deposits

10,000

-

-

 Marketable securities

130,721

162,244

186,890

 Trading securities

76

75

530

 Accounts receivable, net of allowance for doubtful accounts of nil, $621 and

  $621 as of December 31, 2012, September 30, 2012 and December 31, 2011

  respectively

5,950

2,845

2,794

 Notes receivable

-

21

-

 Amount due from a related party

340

158

9

 Amount due from an equity method investee

79

113

64

 Inventories

11,979

11,722

7,477

 Prepaid expenses and other current assets

4,288

4,159

1,675

 Income tax recoverable

189

-

-

 Deferred tax assets

504

375

430

Total current assets

235,462

221,756

233,076

 Investments in equity method investees

14,329

14,409

14,246

 Other investments

16,305

18,833

17,334

 Marketable securities

11,239

11,039

-

 Rental deposits

49

43

49

 Property, plant and equipment, net

32,321

32,133

32,939

 Land use right

1,584

1,565

1,593

 Acquired intangible assets, net

10,819

8,457

9,859

 Deposit paid for acquisition of intangible assets

-

1,088

-

 Deferred tax assets

80

83

27

TOTAL ASSETS

322,188

309,406

309,123

LIABILITIES AND EQUITY

Current liabilities:

 Accounts payable

8,073

7,953

4,374

 Accrued expenses and other current liabilities

9,014

6,134

8,605

 Short-term bank loans

20,500

12,000

12,000

 Other liabilities

2,056

1,893

1,954

 Income tax payable

49

118

238

 Deferred tax liabilities

534

705

295

Total current liabilities

40,226

28,803

27,466

Other liabilities

13

6

458

Payable for acquisition of intangible assets

-

-

153

Deferred tax liabilities

3,189

3,090

2,840

Total liabilities

43,428

31,899

30,917

Equity:

 Ordinary shares

1

1

1

 Additional paid-in capital

20,202

20,521

20,600

 Accumulated other comprehensive income

35,751

32,523

32,589

 Retained earnings

222,835

224,490

225,037

Total Actions Semiconductor Co., Ltd. shareholders' equity

278,789

277,535

278,227

Non-controlling interest

(29)

(28)

(21)

Total equity

278,760

277,507

278,206

TOTAL LIABILITIES AND EQUITY

322,188

309,406

309,123

 

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

December 31,

Three months ended

December 31,

Year ended

December 31,

Year ended

December 31,

2012

2011

2012

2011

(unaudited)

(unaudited)

(unaudited)

(audited)

Revenues:

  Third-parties:

   System-on-a-chip products

14,314

12,036

52,356

41,385

   Semiconductor product testing services

28

58

179

317

14,342

12,094

52,535

41,702

  Related-parties:

   System-on-a-chip products

817

199

1,794

5,783

  Total revenues

15,159

12,293

54,329

47,485

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(9,697)

(7,513)

(33,814)

(25,454)

   Semiconductor product testing services

(15)

(34)

(100)

(176)

(9,712)

(7,547)

(33,914)

(25,630)

  Related-parties:

   System-on-a-chip products

(587)

(127)

(1,193)

(3,367)

  Total cost of revenues

(10,299)

(7,674)

(35,107)

(28,997)

Gross profit

4,860

4,619

19,222

18,488

Other operating income

136

227

896

1,523

Operating expenses:

  Research and development

(6,195)

(5,984)

(23,739)

(22,086)

  General and administrative

(2,660)

(2,468)

(8,573)

(8,786)

  Selling and marketing

(364)

(307)

(1,281)

(1,195)

Impairment on goodwill and intangible assets

-

-

(888)

Total operating expenses

(9,219)

(8,759)

(33,593)

(32,955)

Loss from operations

(4,223)

(3,913)

(13,475)

(12,944)

Other income

1,674

270

1,547

4,066

Dividend income from an other investment

-

457

-

889

Investment income from an other investment

-

-

-

268

Fair value change in financial instruments

-

1

2

4

Gain on disposal of an other investment

-

-

-

195

Other-than-temporary impairment loss on investments

(2,543)

-

(2,543)

-

Interest income

3,257

3,494

13,240

12,668

Interest expense

(63)

(52)

(250)

(144)

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

(1,898)

257

(1,479)

5,002

Income tax credit (expense)

370

(33)

(772)

(879)

Equity in net (loss) income of equity method investees

(128)

(337)

41

(1,113)

Net  (loss) income

(1,656)

(113)

(2,210)

3,010

Less: Net loss (income) attributable to noncontrolling interest

1

1

8

(5)

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

(1,655)

(112)

(2,202)

3,005

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

Basic (per share)

(0.004)

(0.000)

(0.005)

0.007

Diluted (per share)

(0.004)

(0.000)

(0.005)

0.007

Basic (per ADS)

(0.024)

(0.002)

(0.032)

0.043

Diluted (per ADS)

(0.024)

(0.002)

(0.032)

0.042

Weighted-average shares used in computation:

Basic

410,209,703

414,831,816

412,706,341

418,499,545

Diluted

410,209,703

414,831,816

412,706,341

433,983,105

Weighted-average ADS used in computation :

Basic

68,368,284

69,138,636

68,784,390

69,749,924

Diluted

68,368,284

69,138,636

68,784,390

72,330,518

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

229

475

1,090

1,449

  General and administrative

67

139

312

393

  Selling and marketing

12

19

52

68

  Cost of revenues

-

1

10

18

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

December 31,

Year ended

December 31,

Year ended

December 31,

2012

2012

2011

(unaudited)

  (unaudited)  

(audited)

Operating activities:

Net (loss) income 

(1,656)

(2,210)

3,010

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

  Operating activities:

  Depreciation of property, plant and equipment

548

2,290

2,109

  Amortization of land use right

9

36

36

  Amortization of acquired intangible assets

871

3,056

1,803

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

(32)

(674)

(995)

  Write down of inventories

-

180

232

  Loss on disposal of property, plant and equipment 

5

5

28

  Loss on disposal of intangible assets

-

-

4

  Impairment loss recognised in respect of goodwill

-

-

468

  Impairment loss recognised in respect of intangible assets

-

-

420

  Impairment loss recognised in respect of other investments

2,543

2,543

-

  Investment income from an other investment

-

-

(268)

  Gain on disposal of other investment

-

-

(195)

  Share of net loss (income) of equity method investees

128

(40)

1,113

  Share-based  compensation

308

1,465

1,928

  Fair value change in financial instruments

-

(2)

(4)

  Deferred taxes

(205)

454

428

  Proceeds from disposal of financial instruments

-

459

-

  Changes in operating assets and liabilities:

    Accounts receivable

(3,098)

(3,150)

(947)

    Notes receivable

21

-

-

    Amount due from a related party

(182)

(331)

550

    Inventories

(77)

(4,510)

(2,632)

    Amount due from an equity method investee

35

(14)

47

    Prepaid expenses and other current assets

(56)

(2,549)

1,736

    Accounts payable

11

3,598

1,310

    Accrued expenses and other current liabilities

3,871

1,232

(3,002)

    Income tax recoverable

(189)

(189)

-

    Income tax payable

(70)

(190)

94

    Rental deposit (paid) received

(5)

4

(8)

Net cash provided by operating activities

2,780

1,463

7,265

Investing activities:

  Increase in an equity method investees

-

(1,500)

(9,676)

  Investment income from an other investment

-

-

268

  Purchase of other investments

-

-

(13,727)

  Proceeds from redemption of marketable securities

32,995

178,975

278,568

  Purchase of marketable securities

-

(132,376)

(272,240)

  Proceeds from disposal of property, plant and equipment

-

22

34

  Proceeds from the disposal of other investments

-

-

195

  Purchase of property, plant and equipment

(168)

(1,147)

(7,472)

  Purchase of intangible assets

(3,086)

(3,867)

(2,642)

  Deposit paid for acquisition of property, plant and equipment

-

(1,088)

-

  (Increase) decrease in time deposits 

(10,000)

(10,000)

34

Net cash from (used in)  investing activities

19,741

29,019

(26,658)

Financing activities:

  Proceeds from short-term bank loans

8,500

8,500

12,000

  Advance subsidy from local authorities of Zhuhai, the PRC

167

299

711

  Proceeds from exercise of stock option

210

2,290

671

  Repurchase of ordinary shares

(836)

(4,151)

(6,251)

Net cash from financing activities

8,041

6,938

7,131

Net increase (decrease) in cash and cash equivalents

30,562

37,420

(12,262)

Cash and cash equivalents at the beginning of the period

40,044

33,207

42,872

Effect of exchange rate changes on cash

730

709

2,597

Cash and cash equivalents at the end of the period

71,336

71,336

33,207

-

-

-

Investor Contacts: Lisa Laukkanen             The Blueshirt Group       lisa@blueshirtgroup.com +1-415-217-4967                  

Edward Chen Investor Relations at Actions Semiconductor edward@actions-semi.com +86-756-3392353*1110  

SOURCE Actions Semiconductor Co., Ltd.



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