Actions Semiconductor Reports Second Quarter 2013 Results

Second Quarter Revenue Up 46.5% Year-Over-Year

Aug 07, 2013, 07:30 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, Aug. 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 second quarter ended June 30, 2013.

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

Revenue for the second quarter of 2013 was $18.5 million, as compared to revenue of $16.4 million for the first quarter of 2013, and $12.6 million for the second quarter of 2012.

Net income attributable to Actions Semiconductor's shareholders for the second quarter of 2013 was $0.7 million or $0.01 per American Depositary Shares ("ADS"). This compares to net income attributable to Actions Semiconductor's shareholders of $0.4 million or $0.006 per ADS, for the first quarter of 2013, and net loss attributable to Actions Semiconductor's shareholders of $0.6 million or $0.008 per ADS, for the second quarter of 2012.

Actions Semiconductor reported gross margin of 32.2% for the second quarter of 2013, compared to gross margin of 36.2% for the first quarter of 2013, and 37.0% for the second quarter of 2012. Included in gross margin for the second quarter of 2013 was a $0.6 million write down of obsolete inventory representing 3.1% of revenue. The Company ended the second quarter with $220.3 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities.

Since the share repurchase program commenced in 2007, the Company has invested approximately $47.8 million in repurchasing its shares. As of June 30, 2013, approximately 21.1 million American Depositary Shares (ADSs) were repurchased.

"Our second quarter revenue was inline with our expectations, driven by strong sales of our OWL series of chipsets supported by the launch of our new dual-core ATM7023 chipset in April of this year. We also saw a sequential increase in shipments from our traditional portable audio products and sales growth from our newer products such as our extended line of high definition video products inspired by our high definition portable media player," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.

"We are aggressively building share in the whitebox tablet market, and expect further penetration once we roll out our second generation lower cost series of dual-core chipsets and high performance series of quad-core chipsets utilizing more powerful CPU and GPU cores and more advanced process nodes over the next few months. At that point, we will have a complete product portfolio that addresses each segment of the whitebox tablet market, from entry level to high end.

"We maintained our leading market position in the traditional portable audio and portable video multimedia business, and are developing new feature rich and differentiated products in those categories. These initiatives, combined with careful cost control and cash management, will move us forward on the path to operational profitability in the future," 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.

Based on current market trends, the peak season for tablets, consumer electronics and portable media players is expected to begin a month later than usual. Therefore, the company expects revenue in the fourth quarter of 2013 to be higher than the third quarter of 2013, which is contrary to the company's historical seasonal sales pattern.

For the third quarter of fiscal year 2013 ending September 30, 2013, Actions Semiconductor estimates revenue in the range of $19.0 to $21.0 million and gross margin of approximately 34%.

Conference Call Details

Actions Semiconductor's second quarter of fiscal year 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Wednesday, August 7, 2013. To participate in the live call, analysts and investors should dial 877-941-2332 (within U.S.) or 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 August 17, 2013 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4632954.

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 outlookfor the whitebox tablet market, 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, 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:

Elaine Ketchmere  

Edward Chen

Compass Investor Relations 

Investor Relations at Actions Semiconductor

eketchmere@compass-ir.com  

edward@actions-semi.com

310-528-3031  

+86-756-3392353*1110

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands of U.S. dollars)

At June 30,

At March 31,

At December 31,

2013

2013

2012

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets:

  Cash and cash equivalents

115,247

57,511

71,336

  Time deposits

15,519

15,322

10,000

  Marketable securities

89,493

139,520

130,721

  Trading securities

73

74

76

  Accounts receivable

5,922

5,248

5,950

  Amount due from a related party

899

292

340

  Amount due from an equity method investee

55

36

79

  Inventories, net of inventory written-down of $1,283, $704 and     $701 as of June 30, 2013, March 31, 2013 and December 31, 2012     respectively

27,759

16,961

11,979

  Prepaid expenses and other current assets

6,483

10,734

4,288

  Income tax recoverable

271

189

189

  Deferred tax assets

362

422

504

Total current assets

262,083

246,309

235,462

  Investments in equity method investees

17,822

14,262

14,329

  Other investments 

16,319

16,308

16,305

  Marketable securities

-

11,269

11,239

  Rental deposits

59

58

49

  Property, plant and equipment, net

31,898

31,876

32,321

  Land use right

1,590

1,579

1,584

  Acquired intangible assets, net

9,743

10,022

10,819

  Deferred tax assets

73

76

80

TOTAL ASSETS

339,587

331,759

322,188

LIABILITIES AND EQUITY

Current liabilities:

  Accounts payable

18,952

11,656

8,073

  Accrued expenses and other current liabilities

5,744

8,340

8,411

  Short-term bank loans

25,500

25,500

20,500

  Other liabilities

2,323

2,351

2,056

  Income tax payable

151

135

49

  Deferred tax liabilities

135

607

534

Total current liabilities

52,805

48,589

39,623

Other liabilities

13

13

13

Payable for acquisition of intangible assets

128

128

603

Deferred tax liabilities

3,516

3,299

3,189

Total liabilities

56,462

52,029

43,428

Equity:

 Ordinary shares

1

1

1

 Additional paid-in capital

20,527

20,257

20,202

 Accumulated other comprehensive income

38,692

36,246

35,751

 Retained earnings                                                                                      

223,935

223,256

222,835

Total Actions Semiconductor Co., Ltd. shareholders' equity

283,155

279,760

278,789

Non-controlling interest

(30)

(30)

(29)

Total equity

283,125

279,730

278,760

TOTAL LIABILITIES AND EQUITY

339,587

331,759

322,188

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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

Three months ended

Three months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

2013

2012

2013

2012

(unaudited)  

 (unaudited)  

 (unaudited)  

 (unaudited)  

Revenues:                                                                                                         

  Third-parties:

   System-on-a-chip products

16,923

12,195

32,692

22,698

   Semiconductor product testing services

35

25

52

86

16,958

12,220

32,744

22,784

  Related-parties:

   System-on-a-chip products

1,559

423

2,188

594

  Total revenues

18,517

12,643

34,932

23,378

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(11,446)

(7,697)

(21,509)

(14,533)

   Semiconductor product testing services

(13)

(13)

(18)

(51)

(11,459)

(7,710)

(21,527)

(14,584)

  Related-parties:

   System-on-a-chip      products

(1,090)

(254)

(1,489)

(368)

  Total cost of revenues

(12,549)

(7,964)

(23,016)

(14,952)

Gross profit

5,968

4,679

11,916

8,426

Other operating income

78

119

152

191

Operating expenses:

  Research and development

(7,340)

(5,557)

(13,362)

(11,339)

  General and administrative

(2,107)

(2,096)

(4,084)

(3,872)

  Selling and marketing

(501)

(301)

(996)

(550)

Total operating expenses

(9,948)

(7,954)

(18,442)

(15,761)

Loss from operations

(3,902)

(3,156)

(6,374)

(7,144)

Other income  (expenses)

1,150

(445)

1,370

94

Dividend income from an other investment

493

-

493

-

Fair value change in trading securities

-

1

-

2

Interest income

2,993

3,118

6,191

6,565

Interest expense

(124)

(62)

(224)

(123)

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

610

(544)

1,456

(606)

Income tax credit (expense)

255

(38)

(98)

(574)

Equity in net (loss) income of equity method investees

(186)

21

(259)

(34)

Net income (loss)

679

(561)

1,099

(1,214)

Less: Net loss attributable to non-controlling interest

-

2

1

6

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

679

(559)

1,100

(1,208)

Net income (loss) per share: Basic

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

0.002

(0.001)

0.003

(0.003)

Net income (loss) per share: Diluted

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

0.002

(0.001)

0.003

(0.003)

Basic (per ADS)

0.010

(0.008)

0.016

(0.018)

Diluted (per ADS)

0.010

(0.008)

0.016

(0.018)

Weighted-average shares used in computation:

Basic

412,242,251

414,249,548

411,185,535

414,123,803

Diluted

427,401,804

414,249,548

424,606,224

414,123,803

Weighted-average ADS used in computation :

Basic

68,707,042

69,041,591

68,530,923

69,020,634

Diluted

71,233,634

69,041,591

70,767,704

69,020,634

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

41

333

205

687

  General and administrative

16

95

66

193

  Selling and marketing

3

17

11

32

  Cost of revenues

15

4

15

10

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

2013

2013

2012

(unaudited)

  (unaudited)  

  (unaudited)  

Operating activities:                                                                                                     

Net income (loss)

679

1,099

(1,214)

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

  Operating activities:

  Depreciation of property, plant and equipment

508

1,055

1,183

  Amortization of land use right

9

18

18

  Amortization of acquired intangible assets

843

1,709

1,426

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

(59)

(59)

(122)

  Write down of inventories

579

583

180

  Loss (gain) on disposal of property, plant and equipment 

4

11

(3)

  Dividend income from another investment

(493)

(493)

-

  Share of net loss of equity method investees

186

259

34

  Share-based  compensation

78

300

922

  Fair value change in trading securities

-

-

(2)

  Deferred taxes

(191)

78

167

  Proceeds from disposal of trading securities

-

-

459

  Changes in operating assets and liabilities:

    Accounts receivable

(665)

41

695

    Amount due from a related party

(607)

(559)

(173)

    Inventories

(11,180)

(16,138)

(3,295)

    Amount due from an equity method investee

(19)

24

(6)

    Prepaid expenses and other current assets

4,812

3,377

(1,204)

    Accounts payable

7,210

10,780

3,904

    Accrued expenses and other current liabilities

(2,787)

(3,350)

(2,688)

    Income tax recoverable

(82)

(82)

-

    Income tax payable

17

103

(36)

    Rental deposit (paid) received

-

(9)

9

Net cash (used in) provided by operating activities

(1,158)

(1,253)

254

Investing activities:

  Investment in an equity method investee

(3,712)

(3,712)

-

  Proceeds from redemption of marketable securities

73,159

80,513

120,008

  Purchase of marketable securities

(10,980)

(27,004)

(92,831)

  Proceeds from disposal of property, plant and equipment

-

-

22

  Purchase of property, plant and equipment

(125)

(149)

(772)

  Purchase of intangible assets

(456)

(498)

(547)

  Increase in time deposits 

-

(5,296)

-

Net cash provided by investing activities

57,886

43,854

25,880

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

-

290

38

  Proceeds from exercise of share option and restricted stock unit

837

2,207

1,799

  Repurchase of ordinary shares

(645)

(2,182)

(2,418)

Net cash provided by (used in) financing activities

192

315

(581)

Net increase in cash and cash equivalents

56,920

42,916

25,553

Cash and cash equivalents at the beginning of the period

57,511

71,336

33,207

Effect of exchange rate changes on cash

816

995

116

Cash and cash equivalents at the end of the period

115,247

115,247

58,876

 

SOURCE Actions Semiconductor Co., Ltd.



RELATED LINKS

http://www.actions-semi.com