Actions Semiconductor Reports Fourth Quarter and Full Year 2013 Results

Fourth Quarter Revenue Up 15.9% Year-Over-Year

27 Jan, 2014, 07:30 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, Jan. 27, 2014 /PRNewswire/ -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS) ("Actions Semiconductor" or "the Company"), 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 year ended December 31, 2013.

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

Revenue for the fourth quarter of 2013 was $17.6 million, as compared to revenue of $16.9 million for the third quarter of 2013, and $15.2 million for the fourth quarter of 2012. 

Revenue for the year ended December 31, 2013 was $69.4 million, compared to $54.3 million for the year ended December 31, 2012.

Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2013 was $0.8 million or $0.012 per basic and diluted American Depositary Share ("ADS").  This compares to net loss attributable to Actions Semiconductor's shareholders of $0.2 million or $0.002 per basic and diluted ADS, for the third quarter of 2013, and a net loss attributable to Actions Semiconductor's shareholders of $1.7 million or $0.024 per basic and diluted ADS, for the fourth quarter of 2012. 

Net income attributable to Actions Semiconductor's shareholders for the year ended December 31, 2013 was $0.1 million or $0.002 per basic and diluted ADS.  This compares to a net loss attributable to Actions Semiconductor's shareholders of $2.2 million or $0.032 per basic and diluted ADS, for the year ended December 31, 2012. 

Actions Semiconductor reported gross margin of 22.2% for the fourth quarter of 2013, compared to gross margin of 33.2% for the third quarter of 2013, and 32.1% for the fourth quarter of 2012.  The Company ended the fourth quarter with $224.6 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities, current and non-current.

Since the share repurchase program commenced in 2007, the Company has invested approximately $50.4 million in repurchasing its shares.  As of December 31, 2013, approximately 22.1 million American Depositary Shares (ADSs) were repurchased.

"The year of 2013 was a critical one for our Company.  We achieved top line growth of 28%, above our 25% target, and improved our bottom line.  Following the successful introduction of our OWL series product family, we have made good progress in penetrating the white-box tablet market and carving market share.  We are also excited about the new growth opportunity brought by wireless connectivity to our traditional multimedia business.  During the fourth quarter, our second generation dual-core solution, ATM7021, made further inroads in the low-end of the tablet market and our new Bluetooth enabled boombox solutions reached volume shipments," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.

"As we enter 2014, we are targeting full year revenue growth between 20% and 25%.  We believe our  OWL series product family provides us with the opportunity to gain share in each segment of the tablet market in 2014, as tablet manufacturers continue migrating to dual-core chipsets for their low-end products and accelerate the use of quad-core solutions for their mid- to high-end models.   At the same time, we expect our newer wireless connectivity enabled multimedia products such as our Bluetooth boombox solutions to make a meaningful contribution to our revenue."

"We believe, as one of the leading design houses in China, our profitability is directly linked to our ability to maintain technology leadership and provide compelling products at each targeted market segment.  In 2014, we will streamline our research and development organization while investing in intellectual property and talent as we seek to enhance our brand image for both multimedia and tablet products," Dr. Zhou concluded.

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.

Based on current market trends, the Company expects revenue in the first quarter of 2014 to be in the range of $12.0 to $13.0 million.  This reflects the return to a more traditional seasonal sales pattern compared to the same period last year, when the Company experienced a steep ramp in shipments associated with the introduction of its new tablet SoC solutions.

The first quarter of the year is traditionally the Company's seasonally slowest quarter due to the Chinese New Year holiday, which causes a slowdown in production by consumer electronics manufacturers in China for approximately three to four weeks.

Conference Call Details

Actions Semiconductor's fourth quarter of fiscal year 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Monday, January 27, 2014.  To participate in the live call, analysts and investors should dial 1-877-941-1465 (within U.S.) or 1-480-629-9723 (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 6, 2014 by dialing 1-800-406-7325 (within U.S.) or 1-303-590-3030 (outside U.S.) and entering access code 4662006.

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 the outlook for its dual-core and quad-core solutions in domestic and overseas markets, customer acceptance of the Actions Semiconductor's new products and corresponding increases in market share, 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 growth.  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:

Elaine Ketchmere, CFA 

Ally Xie, CA, CPA

Compass Investor Relations 

Actions Semiconductor

eketchmere@compass-ir.com 

investor.relations@actions-semi.com

+1-310-528-3031 

+86-756-3392353*1018

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands of U.S. dollars)

At December 31,

At September 30,

At December 31,

2013

2013

2012

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets:

  Cash and cash equivalents

53,263

67,884

71,336

  Time deposits

27,508

21,453

10,000

  Marketable securities

126,607

126,282

130,721

  Trading securities

74

75

76

  Accounts receivable

5,782

7,294

5,950

  Notes receivable

-

37

-

  Amount due from a related party

1,301

-

340

  Amount due from an equity method investee

38

75

79

  Inventories, net of inventory written-down of $1,558, $1,276 and $701 as of    December 31, 2013, September 30, 2013 and December 31, 2012, respectively

20,278

25,414

11,979

  Prepaid expenses and other current assets

3,972

3,018

4,288

  Income tax recoverable

67

79

189

  Deferred tax assets

416

466

504

Total current assets

239,306

252,077

235,462

  Investments in equity method investees

17,843

17,903

14,329

  Other investments 

15,648

16,321

16,305

  Marketable securities

17,139

-

11,239

  Rental deposits

61

66

49

  Property, plant and equipment, net

31,896

31,817

32,321

  Land use right

1,588

1,584

1,584

  Acquired intangible assets, net

12,218

11,101

10,819

  Deposit paid for acquisition of intangible assets

145

759

-

  Deferred tax assets

99

69

80

TOTAL ASSETS

335,943

331,697

322,188

LIABILITIES AND EQUITY

Current liabilities:

  Accounts payable

6,016

6,317

8,073

  Accrued expenses and other current liabilities

6,127

5,688

8,411

  Short-term bank loans

35,500

30,500

20,500

  Other liabilities

1,362

2,176

2,056

  Income tax payable

49

49

49

  Deferred tax liabilities

343

260

534

Total current liabilities

49,397

44,990

39,623

  Other liabilities

412

13

13

  Payable for acquisition of intangible assets

-

128

603

  Deferred tax liabilities

3,589

3,597

3,189

Total liabilities

53,398

48,728

43,428

Equity:

  Ordinary shares

1

1

1

  Additional paid-in capital

18,882

20,154

20,202

  Accumulated other comprehensive income

40,734

39,061

35,751

  Retained earnings

222,959

223,784

222,835

Total Actions Semiconductor Co., Ltd. shareholders' equity

282,576

283,000

278,789

  Non-controlling interest

(31)

(31)

(29)

Total equity

282,545

282,969

278,760

TOTAL LIABILITIES AND EQUITY

335,943

331,697

322,188

         

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,

2013

2012

2013

2012

(unaudited)

(unaudited)

(unaudited)

(audited)

Revenues:

  Third-parties:

   System-on-a-chip products

15,095

14,314

64,617

52,356

   Semiconductor product testing services

29

28

135

179

15,124

14,342

64,752

52,535

  Related-parties:

   System-on-a-chip products

2,451

817

4,639

1,794

  Total revenues

17,575

15,159

69,391

54,329

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(11,567)

(9,697)

(44,324)

(33,814)

   Semiconductor product testing services

(13)

(15)

(58)

(100)

(11,580)

(9,712)

(44,382)

(33,914)

  Related-parties:

   System-on-a-chip products

(2,094)

(587)

(3,583)

(1,193)

  Total cost of revenues

(13,674)

(10,299)

(47,965)

(35,107)

Gross profit

3,901

4,860

21,426

19,222

Other operating income

1,517

136

2,170

896

Operating expenses:

  Research and development

(6,086)

(6,195)

(25,995)

(23,739)

  General and administrative

(2,547)

(2,660)

(8,764)

(8,573)

  Selling and marketing

(614)

(364)

(2,057)

(1,281)

Total operating expenses

(9,247)

(9,219)

(36,816)

(33,593)

Loss from operations

(3,829)

(4,223)

(13,220)

(13,475)

Other income

779

1,674

2,336

1,547

Dividend income from an other investment

0

0

493

0

Fair value change in trading securities

0

0

0

2

Other-than-temporary impairment loss on investments

(681)

(2,543)

(681)

(2,543)

Interest income

3,241

3,257

12,358

13,240

Interest expense

(146)

(63)

(498)

(250)

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

(636)

(1,898)

788

(1,479)

Income tax (expense) credit

(108)

370

(403)

(772)

Equity in net (loss) income of equity method investees

(82)

(128)

(264)

41

Net (loss) income

(826)

(1,656)

121

(2,210)

Less: Net loss attributable to non-controlling interest

1

1

2

8

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

(825)

(1,655)

123

(2,202)

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

Basic (per share)

(0.002)

(0.004)

0.000

(0.005)

Diluted (per share)

(0.002)

(0.004)

0.000

(0.005)

Basic (per ADS)

(0.012)

(0.024)

0.002

(0.032)

Diluted (per ADS)

(0.012)

(0.024)

0.002

(0.032)

Weighted-average shares used in computation:

Basic

412,162,575

410,209,703

412,103,255

412,706,341

Diluted

412,162,575

410,209,703

425,415,011

412,706,341

Weighted-average ADS used in computation:

Basic

68,693,763

68,368,284

68,683,876

68,784,390

Diluted

68,693,763

68,368,284

70,902,502

68,784,390

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

74

229

347

1,090

  General and administrative

25

67

79

312

  Selling and marketing

3

12

17

52

  Cost of revenues

0

0

49

10

      

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,

2013

2013

2012

(unaudited)

  (unaudited)  

  (audited)  

Operating activities:

Net (loss) income 

(826)

121

(2,210)

Adjustments to reconcile net (loss) income provided by

  Operating activities:

  Depreciation of property, plant and equipment

508

2,072

2,290

  Amortization of land use right

9

36

36

  Amortization of acquired intangible assets

923

3,480

3,056

  Utilization of subsidy from local authorities of Zhuhai, 

  the People's Republic of China ("PRC")

(846)

(1,068)

(674)

  Write down of inventories

282

865

180

  Loss on disposal of property, plant and equipment 

-

-

5

  Share of net loss (income) of equity method investees

82

264

(41)

  Share-based compensation

102

492

1,465

  Fair value change in trading securities

-

-

(2)

  Deferred taxes

94

279

454

  Proceeds from disposal of trading securities

-

-

459

  Dividend income from an other investment

-

(493)

-

  Impairment loss recognised in respect of other investments

681

681

2,543

  Changes in operating assets and liabilities:

    Accounts receivable

1,525

195

(3,150)

    Notes receivable

37

-

-

    Amount due from a related party

(1,301)

(961)

(331)

    Inventories

5,062

(8,686)

(4,510)

    Amount due from an equity method investee

37

41

(14)

    Prepaid expenses and other current assets

(930)

5,922

(2,549)

    Accounts payable

(330)

(2,198)

3,598

    Accrued expenses and other current liabilities

348

(3,051)

(3,526)

    Income tax recoverable

13

123

(189)

    Income tax payable

1

2

(190)

    Rental deposit received (paid) 

5

(11)

4

Net cash provided by (used in) operating activities

5,476

(1,895)

(3,296)

Investing activities:

  Investment in an equity method investee

-

(3,712)

(1,500)

  Proceeds from redemption of marketable securities

13,434

112,966

178,975

  Purchase of marketable securities

(30,529)

(113,329)

(132,376)

  Proceeds from disposal of property, plant and equipment

25

41

22

  Purchase of property, plant and equipment

(340)

(862)

(249)

  Purchase of intangible assets

(1,199)

(3,884)

(1,081)

  Deposit paid for acquisition of intangible assets

(145)

(904)

-

  Increase in time deposits 

(5,960)

(17,159)

(10,000)

Net cash (used in) provided by investing activities

(24,714)

(26,843)

33,791

Financing activities:

  Proceeds from short-term bank loans

5,000

10,000

8,500

  Advance subsidy from local authorities of Zhuhai, the PRC

412

714

299

  Proceeds from exercise of share option and restricted stock unit

471

3,041

2,289

  Repurchase of ordinary shares

(1,845)

(4,853)

(4,152)

Net cash provided by financing activities

4,038

8,902

6,936

Net (decrease) increase in cash and cash equivalents

(15,200)

(19,836)

37,431

Cash and cash equivalents at the beginning of the period

67,884

71,336

33,207

Effect of exchange rate changes on cash

579

1,763

698

Cash and cash equivalents at the end of the period

53,263

53,263

71,336

 

 

SOURCE Actions Semiconductor Co., Ltd.



RELATED LINKS

http://www.actions-semi.com