Actions Semiconductor Reports Third Quarter 2012 Results

ZHUHAI, China, Nov. 6, 2012 /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 third quarter ended September 30, 2012.

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

Revenue for the third quarter of 2012 was $15.8 million, as compared to revenue of $12.6 million for the second quarter of 2012, and $15.3 million for the third quarter of 2011.

Net income attributable to Actions Semiconductor's shareholders for the third quarter of 2012 was $0.66 million or $0.01 per American Depositary Shares ("ADS"). This compares to a net loss attributable to Actions Semiconductor's shareholders of $0.56 million or $0.01 per ADS, for the second quarter of 2012, and net income attributable to Actions Semiconductor's shareholders of $2.6 million or $0.04 per ADS, for the third quarter of 2011. 

Actions Semiconductor reported gross margin of 37.6% for the third quarter of 2012, compared to gross margin of 37.0% for the second quarter of 2012, and 40.6% for the third quarter of 2011. The Company ended the third quarter with $40.0 million in cash and cash equivalents. Trading securities and marketable securities, current and non-current, were $173.4 million at the end of the third quarter.

Since the share repurchase program commenced in 2007, the Company has invested approximately $44.8 million in repurchasing its shares. As of September 30, 2012, approximately 19.7 million American Depositary Shares (ADSs) were repurchased.

"Our third quarter revenue was in line with expectations and we were pleased to see a sequential improvement to our bottom line," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor. "While, the largest portion of our revenue came from our value-oriented solutions, we are beginning to see early results from the product strategy we put in place over the past year. While we are concentrating on growing our tablet business, we continue to preserve our leading market share position in our mainstream portable audio and portable video products.

"As a result of our ongoing R&D and product innovation efforts, we recently introduced our new ATM702x product family. We are excited to be one of the first companies to provide a high performance tablet SoC beyond dual core CPU and to integrate USB 3.0 PHY into SoCs.

"As we head into the fourth quarter, we will continue to focus on further penetrating the mobile Internet enabled multimedia tablet market. We remain enthusiastic about the long-term growth opportunities in this market segment," 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 fourth quarter of fiscal year 2012 ending December 31, 2012, Actions Semiconductor estimates revenue in the range of $13.5 to $14.5 million and gross margin of approximately 37%.

Conference Call Details

Actions Semiconductor's third quarter 2012 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, November 6, 2012. To participate in the live call, analysts and investors should dial 877-941-8416 (within U.S.) or 480-629-9808 (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 November 16, 2012 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4569720.

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 September 30,


At June 30,


At December 31,


2012


2012


2011


(unaudited)


(unaudited)


(audited)

ASSETS






Current assets:






  Cash and cash equivalents

40,044


58,876


33,207

  Marketable securities

162,244


148,843


186,890

  Trading securities

75


80


530

  Accounts receivable, net of allowance for doubtful accounts of $621, $621 and $621 as of
  September 30, 2012, June 30, 2012 and December 31, 2011, respectively

2,845


2,098


2,794

   Notes receivable

21


-


-

  Amount due from a related party

158


182


9

  Amount due from an equity method investee

113


70


64

  Inventories

11,722


10,606


7,477

  Prepaid expenses and other current assets

4,159


2,878


1,675

  Deferred tax assets

375


414


430

Total current assets

221,756


224,047


233,076







  Investments in equity method investees

14,409


14,215


14,246

  Other investments 

18,833


17,335


17,334

  Marketable securities

11,039


11,067


-

  Rental deposits

43


43


49

  Property, plant and equipment, net

32,133


32,571


32,939

  Land use right

1,565


1,578


1,593

  Acquired intangible assets, net

8,457


9,002


9,859

  Deposit paid for acquisition of intangible assets

1,088


-


-

  Deferred tax assets

83


87


27

TOTAL ASSETS

309,406


309,945


309,123







LIABILITIES AND EQUITY






Current liabilities:






  Accounts payable

7,953


8,285


4,374

  Accrued expenses and other current liabilities

6,134


5,945


8,605

  Short-term bank loan

12,000


12,000


12,000

  Other liabilities

1,893


2,325


1,954

  Income tax payable

118


202


238

  Deferred tax liabilities

705


421


295

Total current liabilities

28,803


29,178


27,466







Other liabilities

6


6


458

Payable for acquisition of intangible assets

-


153


153

Deferred tax liabilities

3,090


2,925


2,840

Total liabilities

31,899


32,262


30,917

Equity:






 Ordinary shares

1


1


1

 Additional paid-in capital

20,521


20,902


20,600

 Accumulated other comprehensive income

32,523


32,978


32,589

 Retained earnings

224,490


223,829


225,037

Total Actions Semiconductor Co., Ltd. shareholders' equity

277,535


277,710


278,227

Non-controlling interest

(28)


(27)


(21)

Total equity

277,507


277,683


278,206

TOTAL LIABILITIES AND EQUITY

309,406


309,945


309,123













ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

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










Three months ended


Three months ended


Nine months ended


Nine months ended


September 30,


September 30,


September 30,


September 30,


2012


2011


2012


2011


(unaudited)


(unaudited)


(unaudited)


(unaudited)









Revenues:








  Third-parties:








   System-on-a-chip products

15,344


13,646


38,042


29,349

   Semiconductor product testing services

65


80


151


259


15,409


13,726


38,193


29,608

  Related-parties:








   System-on-a-chip products

383


1,623


977


5,584

  Total revenues

15,792


15,349


39,170


35,192

Cost of revenues:








  Third-parties:








   System-on-a-chip products

(9,584)


(8,100)


(24,117)


(17,941)

   Semiconductor product testing services

(34)


(46)


(85)


(142)


(9,618)


(8,146)


(24,202)


(18,083)

  Related-parties:








   System-on-a-chip products

(238)


(971)


(606)


(3,240)

  Total cost of revenues

(9,856)


(9,117)


(24,808)


(21,323)

Gross profit

5,936


6,232


14,362


13,869

Other operating income

569


674


760


1,296

Operating expenses:








  Research and development

(6,205)


(5,455)


(17,544)


(16,102)

  General and administrative

(2,041)


(2,397)


(5,913)


(6,318)

  Selling and marketing

(367)


(296)


(917)


(888)

Impairment on goodwill and intangible assets

-


(888)


-


(888)

Total operating expenses

(8,613)


(9,036)


(24,374)


(24,196)

Loss from operations

(2,108)


(2,130)


(9,252)


(9,031)

Other (expenses) income

(221)


1,564


(127)


3,991

Dividend income from an other investment

-


-


-


432

Investment income from an other investment

-


268


-


268

Fair value change in financial instruments

-


1


2


3

Interest income

3,418


3,317


9,983


9,174

Interest expense

(64)


(41)


(187)


(92)

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

1,025


2,979


419


4,745

Income tax expense

(568)


(403)


(1,142)


(797)

Equity in net income (loss) of equity method investees

203


82


169


(776)

Net income (loss)

660


2,658


(554)


3,172

Less: Net loss (profit) attributable to noncontrolling interest

1


(9)


7


(5)

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

661


2,649


(547)


3,167









Net income (loss) per share-basic:








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

0.002


0.006


(0.001)


0.008









Net income (loss) per share-diluted:








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

0.002


0.006


(0.001)


0.007









Basic (per ADS)

0.010


0.038


(0.008)


0.045

Diluted (per ADS)

0.009


0.037


(0.008)


0.044









Weighted-average shares used in computation:








Basic

412,398,886


417,128,804


413,580,031


418,556,198

Diluted

417,706,448


430,868,090


413,580,031


436,020,121









Weighted-average ADS used in computation :








Basic

68,733,148


69,521,467


68,930,005


69,759,366

Diluted

69,617,741


71,811,348


68,930,005


72,670,020









Note: Stock compensation recorded in each








expense classification above is as follows:








  Research and development

174


10


861


974

  General and administrative

52


(10)


245


254

  Selling and marketing

8


-


40


49

  Cost of revenues

-


1


10


17

 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)



Three months ended


Nine months ended


Nine months ended


September 30,


September 30,


September 30,


2012


2012


2011


(unaudited)


  (unaudited)  


  (unaudited)  

Operating activities:






Net income (loss)

660


(554)


3,172

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





  Operating activities:






  Depreciation of property, plant and equipment

559


1,742


1,516

  Amortization of land use right

9


27


27

  Amortization of acquired intangible assets

759


2,185


1,209

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

(520)


(642)


(995)

  Write down of inventories

-


180


232

  Loss on disposal of property, plant and equipment 

3


-


3

  Loss on disposal of intangible assets

-


-


4

  Impairment loss recognised in respect of goodwill

-


-


420

  Impairment loss recognised in respect of intangible assets

-


-


468

  Investment income from an other investment

-


-


(268)

  Gain on disposal of other investment

-


-


(195)

  Share of net (income) loss of equity method investees

(202)


(168)


777

  Share-based compensation

235


1,157


1,294

  Fair value change in trading securities

-


(2)


40

  Deferred taxes

492


659


414

  Proceeds from disposal of trading securities

-


459


-

  Changes in operating assets and liabilities:






    Accounts receivable

(747)


(52)


(694)

    Notes receivable

(21)


(21)


-

    Amount due from a related party

24


(149)


238

    Inventories

(1,138)


(4,433)


(3,528)

    Amount due from an equity method investee

(43)


(49)


30

    Prepaid expenses and other current assets

(1,289)


(2,493)


527

    Accounts payable

(317)


3,587


4,445

    Accrued expenses and other current liabilities

49


(2,639)


3,969

    Income tax payable

(84)


(120)


308

    Rental deposit received (paid)

-


9


(8)

Net cash (used in) from operating activities

(1,571)


(1,317)


13,405







Investing activities:






  Increase in an equity method investee

(1,500)


(1,500)


(9,676)

  Investment income from an other investment

-


-


268

  Purchase of other investments

-


-


(13,727)

  Proceeds from redemption of marketable securities

25,972


145,980


276,331

  Purchase of marketable securities

(39,545)


(132,376)


(234,906)

  Proceeds from disposal of property, plant and equipment

-


22


34

  Proceeds from the disposal of other investments

-


-


195

  Purchase of property, plant and equipment

(207)


(979)


(12,638)

  Purchase of intangible assets

(234)


(781)


(1,309)

  Deposit paid for acquisition of intangible assets

(1,088)


(1,088)


-

  Decrease in time deposits 

-


-


34

Net cash (used in) from investing activities

(16,602)


9,278


4,606







Financing activities:






  Proceeds from short-term bank loans

-


-


12,000

  Advance subsidy from local authorities of Zhuhai, the PRC

94


132


16

  Proceeds from exercise of stock option

281


2,080


464

  Repurchase of ordinary shares

(897)


(3,315)


(5,065)

Net cash (used in) from financing activities

(522)


(1,103)


7,415







Net (decrease) increase in cash and cash equivalents

(18,695)


6,858


25,426







Cash and cash equivalents at the beginning of the period

58,876


33,207


42,872







Effect of exchange rate changes on cash

(137)


(21)


2,355

Cash and cash equivalents at the end of the period

40,044


40,044


70,653

 

SOURCE Actions Semiconductor Co., Ltd.



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