Actions Semiconductor Reports Third Quarter 2013 Results

Third Quarter Revenue Up 6.9% Year-Over-Year

Nov 06, 2013, 07:30 ET from Actions Semiconductor Co., Ltd.

ZHUHAI, China, Nov. 6, 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 third quarter ended September 30, 2013.

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

Revenue for the third quarter of 2013 was $16.9 million, as compared to revenue of $18.5 million for the second quarter of 2013, and $15.8 million for the third quarter of 2012.

Net loss attributable to Actions Semiconductor's shareholders for the third quarter of 2013 was $0.2 million or $0.002 per basic and diluted American Depositary Share ("ADS"). This compares to net income attributable to Actions Semiconductor's shareholders of $0.7 million or $0.01 per basic and diluted ADS, for the second quarter of 2013, and net income attributable to Actions Semiconductor's shareholders of $0.7 million or $0.01 per basic ADS and $0.009 per diluted ADS, for the third quarter of 2012.

Actions Semiconductor reported gross margin of 33.2% for the third quarter of 2013, compared to gross margin of 32.2% for the second quarter of 2013, and 37.6% for the third quarter of 2012. The Company ended the third quarter with $215.7 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 $48.6 million in repurchasing its shares. As of September 30, 2013, approximately 21.4 million American Depositary Shares (ADSs) were repurchased.

"Our third quarter results were impacted by lower than expected overall demand for white-box tablets, significant DRAM price increases and slower than anticipated adoption of quad-core solutions in overseas markets, resulting in a sequential decline in revenue and a net loss for the quarter," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.

"Although overall adoption of quad-core solutions has been slower than originally anticipated in overseas markets, we believe this only a temporary delay due to issues such as higher DRAM prices and are confident the migration from dual-core to quad-core chipsets will dominate the mid to high end of the tablet market in 2014.  In the meantime, our dual-core ATM7021 solution is rapidly gaining traction in the low end of the market at the expense of single-core CPU based SoC. In our traditional portable audio and portable video multimedia business, we saw a sequential increase in shipments of audio products and our extended line of high definition video products inspired by our high definition portable media player continued to make a large contribution to our revenue mix."

"With the recent introduction of our new high performance quad-core ATM7039 chipset, we have completed the OWL series product family as planned. We are now armed with a complete product portfolio targeting the full spectrum of the tablet market from low to high end. We will continue to develop new solutions to meet the needs of the whitebox tablet market along with differentiated traditional portable audio and portable video multimedia products to diversify our revenue stream. We are on track to achieve our revenue growth target of at least 25% for the full year 2013 and expect to further penetrate the mobile Internet enabled multimedia market in 2014 and beyond."

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 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 fourth quarter of fiscal year 2013 ending December 31, 2013, Actions Semiconductor estimates revenue in the range of $17.0 to $19.0 million.

Conference Call Details

Actions Semiconductor's third quarter of fiscal year 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Wednesday, November 6, 2013. To participate in the live call, analysts and investors should dial 877-941-1465 (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 November 16, 2013 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4646989.

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, 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

Ally Xie

Compass Investor Relations

Actions Semiconductor

eketchmere@compass-ir.com

investor.relations@actions-semi.com

310-528-3031

+86-756-3392353*1018

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands of U.S. dollars)

At September 30,

At June 30,

At December 31,

2013

2013

2012

(unaudited)

(unaudited)

(audited)

ASSETS                                                                                                             

Current assets:

  Cash and cash equivalents

67,884

115,247

71,336

  Time deposits

21,453

15,519

10,000

  Marketable securities

126,282

89,493

130,721

  Trading securities

75

73

76

  Accounts receivable

7,294

5,922

5,950

  Notes receivable

37

-

-

  Amount due from a related party

-

899

340

  Amount due from an equity method investee

75

55

79

  Inventories, net of inventory written-down of $1,276, $1,283 and $701 as of

  September 30, 2013, June 30, 2013 and December 31, 2012, respectively

25,414

27,759

11,979

  Prepaid expenses and other current assets

3,018

6,483

4,288

  Income tax recoverable

79

271

189

  Deferred tax assets

466

362

504

Total current assets

252,077

262,083

235,462

  Investments in equity method investees

17,903

17,822

14,329

  Other investments

16,321

16,319

16,305

  Marketable securities

-

-

11,239

  Rental deposits

66

59

49

  Property, plant and equipment, net

31,817

31,898

32,321

  Land use right

1,584

1,590

1,584

  Acquired intangible assets, net

11,101

9,743

10,819

  Deposit paid for acquisition of intangible assets

759

-

-

  Deferred tax assets

69

73

80

TOTAL ASSETS

331,697

339,587

322,188

LIABILITIES AND EQUITY

Current liabilities:

  Accounts payable

6,317

18,952

8,073

  Accrued expenses and other current liabilities

5,688

5,744

8,411

  Short-term bank loans

30,500

25,500

20,500

  Other liabilities

2,176

2,323

2,056

  Income tax payable

49

151

49

  Deferred tax liabilities

260

135

534

Total current liabilities

44,990

52,805

39,623

Other liabilities

13

13

13

Payable for acquisition of intangible assets

128

128

603

Deferred tax liabilities

3,597

3,516

3,189

Total liabilities

48,728

56,462

43,428

Equity:

  Ordinary shares

1

1

1

  Additional paid-in capital

20,154

20,527

20,202

  Accumulated other comprehensive income

39,061

38,692

35,751

  Retained earnings

223,784

223,935

222,835

Total Actions Semiconductor Co., Ltd. shareholders' equity

283,000

283,155

278,789

Non-controlling interest

(31)

(30)

(29)

Total equity

282,969

283,125

278,760

TOTAL LIABILITIES AND EQUITY

331,697

339,587

322,188

 

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,

2013

2012

2013

2012

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenues:                                                                                 

  System-on-a-chip products

16,830

15,727

51,710

39,019

  Semiconductor product testing services

54

65

106

151

 Total revenues

16,884

15,792

51,816

39,170

Cost of revenues:

  System-on-a-chip products

(11,248)

(9,822)

(34,246)

(24,723)

  Semiconductor product testing services

(27)

(34)

(45)

(85)

Total cost of revenues

(11,275)

(9,856)

(34,291)

(24,808)

Gross profit

5,609

5,936

17,525

14,362

Other operating income

501

569

653

760

Operating expenses:

  Research and development

(6,547)

(6,205)

(19,909)

(17,544)

  General and administrative

(2,133)

(2,041)

(6,217)

(5,913)

  Selling and marketing

(447)

(367)

(1,443)

(917)

Total operating expenses

(9,127)

(8,613)

(27,569)

(24,374)

Loss from operations

(3,017)

(2,108)

(9,391)

(9,252)

Other income (expenses) 

187

(221)

1,557

(127)

Dividend income from an other investment

-

-

493

-

Fair value change in trading securities

-

-

-

2

Interest income

2,926

3,418

9,117

9,983

Interest expense

(128)

(64)

(352)

(187)

(Loss) income before income taxes, equity in net income (loss) of 

equity method investees and non-controlling interest

(32)

1,025

1,424

419

Income tax expense

(197)

(568)

(295)

(1,142)

Equity in net income (loss) of equity method investees

77

203

(182)

169

Net (loss) income

(152)

660

947

(554)

Less: Net loss attributable to non-controlling interest

-

1

1

7

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

(152)

661

948

(547)

Net (loss) income per share: Basic

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

(0.000)

0.002

0.002

(0.001)

Net (loss) income per share: Diluted

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

(0.000)

0.002

0.002

(0.001)

Basic (per ADS)

(0.002)

0.010

0.014

(0.008)

Diluted (per ADS)

(0.002)

0.009

0.013

(0.008)

Weighted-average shares used in computation:

Basic

413,849,403

412,398,886

412,083,249

413,580,031

Diluted

413,849,403

417,706,448

425,687,178

413,580,031

Weighted-average ADS used in computation :

Basic

68,974,901

68,733,148

68,680,542

68,930,005

Diluted

68,974,901

69,617,741

70,947,863

68,930,005

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

68

174

273

861

  General and administrative

(12)

52

54

245

  Selling and marketing

3

8

14

40

  Cost of revenues

34

-

49

10

 

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,

2013

2013

2012

(unaudited)

  (unaudited) 

  (unaudited) 

Operating activities:

Net (loss) income

(152)

947

(554)

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

  Operating activities:

  Depreciation of property, plant and equipment

509

1,564

1,742

  Amortization of land use right

9

27

27

  Amortization of acquired intangible assets

848

2,557

2,185

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

(163)

(222)

(642)

  Write down of inventories

-

583

180

  Gain on disposal of property, plant and equipment

(11)

-

-

  Dividend income from another investment

-

(493)

-

  Share of net (income) loss of equity method investees

(77)

182

(168)

  Share-based compensation

90

390

1,157

  Fair value change in trading securities

-

-

(2)

  Deferred taxes

107

185

659

  Proceeds from disposal of trading securities

-

-

459

  Changes in operating assets and liabilities:

    Accounts receivable

(1,371)

(1,330)

(52)

    Notes receivable

(37)

(37)

(21)

    Amount due from a related party

899

340

(149)

    Inventories

2,390

(13,748)

(4,433)

    Amount due from an equity method investee

(20)

4

(49)

    Prepaid expenses and other current assets

3,475

6,852

(2,493)

    Accounts payable

(12,648)

(1,868)

3,587

    Accrued expenses and other current liabilities

(49)

(3,399)

(2,639)

    Income tax recoverable

192

110

-

    Income tax payable

(102)

1

(120)

    Rental deposit (paid) received

(7)

(16)

9

Net cash used in operating activities

(6,118)

(7,371)

(1,317)

Investing activities:

  Investment in an equity method investee

-

(3,712)

(1,500)

  Proceeds from redemption of marketable securities

19,019

99,532

145,980

  Purchase of marketable securities

(55,796)

(82,800)

(132,376)

  Proceeds from disposal of property, plant and equipment

16

16

22

  Purchase of property, plant and equipment

(373)

(522)

(979)

  Purchase of intangible assets

(2,187)

(2,685)

(781)

  Deposit paid for acquisition of intangible assets

(759)

(759)

(1,088)

  Increase in time deposits

(5,903)

(11,199)

-

Net cash (used in) provided by investing activities

(45,983)

(2,129)

9,278

Financing activities:

  Proceeds from short-term bank loans

5,000

5,000

-

  Advance subsidy from local authorities of Zhuhai, the PRC

12

302

132

  Proceeds from exercise of share option and restricted stock unit

363

2,570

2,080

  Repurchase of ordinary shares

(826)

(3,008)

(3,315)

Net cash provided by (used in) from financing activities

4,549

4,864

(1,103)

Net (decrease) increase in cash and cash equivalents

(47,552)

(4,636)

6,858

Cash and cash equivalents at the beginning of the period

115,247

71,336

33,207

Effect of exchange rate changes on cash

189

1,184

(21)

Cash and cash equivalents at the end of the period

67,884

67,884

40,044

 

SOURCE Actions Semiconductor Co., Ltd.



RELATED LINKS

http://www.actions-semi.com