omniture

Actions Semiconductor Reports First Quarter 2011 Results

2011-05-11 12:47 2922

ZHUHAI, China, May 10, 2011 /PRNewswire-Asia/ -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS), one of China's leading fabless semiconductor companies that provides comprehensive mixed-signal system-on-a-chip (SoC) and multimedia digital signal processing (DSP) solutions for portable consumer electronics, today reported its financial results for the first quarter ended March 31, 2011.

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

Revenue for the first quarter of 2011 was $9.4 million, as compared to revenue of $10.7 million for the fourth quarter of 2010, and $7.9 million for the first quarter of 2010.

Net income attributable to Actions Semiconductor's shareholders for the first quarter of 2011 was $5,000 or $0.00 per ADS. This compares to a net loss attributable to Actions Semiconductor's shareholders of $152,000 or $0.00 per ADS, for the fourth quarter of 2010, and a net loss attributable to Actions Semiconductor's shareholders of $874,000 or $0.01 per ADS, for the first quarter of 2010.

Actions Semiconductor reported gross margin of 39.1% for the first quarter of 2011, as compared to gross margin of 37.1% for the fourth quarter of 2010, and 39.6% for the first quarter of 2010. The Company ended the first quarter of 2011 with $111.9 million in cash and cash equivalents. Trading securities and marketable securities, current and non-current, were $106.6 million at the end of the first quarter.

Since the share repurchase programs commenced in 2007, the Company has invested approximately $38.5 million in repurchasing its shares. As of March 31, 2011, approximately 16.3 million American Depositary Shares (ADSs) were repurchased.

"Our better than expected sales in the first quarter were driven by strong demand across our products lines, with particular strength in products targeting the automotive, boom box, gaming, and high-end MP4 markets," stated Mr. Niccolo Chen, CEO of Actions Semiconductor. "We continue to enjoy leading market share in key market segments such as small color display MP3, QVGA MP4, and D1 PMP with gaming functions, and we are increasing our market share in fast growing newer market segments such as automotive, boom box, HD PMP, and HD gaming. We are pleased to see increased interest in our boom box products which are successfully penetrating larger brand name customers in China. In the high end market segments, we are continuing to develop products, including the newly launched Series 28 HD 1080P, which distinguishes Actions by offering differentiating features and cost competitive total solutions. We are encouraged by the current market trends."

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 second quarter of fiscal year 2011 ending June 30, 2011, Actions Semiconductor estimates revenue in the range of $10.0 to $11.0 million, gross margin will be approximately 40% and operating expenses higher on a sequential basis. The second quarter 2011 estimates include share-based compensation of approximately $0.5 million.

Conference Call Details

Actions Semiconductor's first quarter 2011 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, May 10, 2011. To participate in the live call, analysts and investors should dial 877-941-1428 (within U.S.) or 480-629-9665 (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 May 20, 2011 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the passcode 4435622.

About Actions Semiconductor

Actions Semiconductor is one of China's leading fabless semiconductor companies that provides mixed-signal and multimedia 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 Beijing, 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*111

 

 

 

 



ACTIONS SEMICONDUCTOR CO., LTD.

 

 

CONSOLIDATED BALANCE SHEET

 

 

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

At March 31,

 

 

At December 31,

 

 

At March 31,

 

 

 

2011

 

 

2010

 

 

2010

 

 

 

(unaudited)

 

 

(audited)

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 Cash and cash equivalents

 

111,871

 

 

42,872

 

 

99,924

 

 

 Time deposits

 

-

 

 

34

 

 

47

 

 

 Marketable securities

 

80,931

 

 

164,336

 

 

133,434

 

 

 Trading securities

 

543

 

 

535

 

 

500

 

 

 Accounts receivable, net

 

1,831

 

 

1,844

 

 

1,940

 

 

 Amount due from a related party

 

1,240

 

 

559

 

 

767

 

 

 Amount due from equity method investees

 

90

 

 

104

 

 

404

 

 

 Inventories

 

5,336

 

 

4,832

 

 

3,555

 

 

 Prepaid expenses and other current assets

 

2,561

 

 

3,242

 

 

1,394

 

 

 Deferred tax assets

 

231

 

 

399

 

 

285

 

 

Total current assets

 

204,634

 

 

218,757

 

 

242,250

 

 

 

 

 

 

 

 

 

 Investment in equity method investees

 

7,666

 

 

6,401

 

 

2,025

 

 

 Other investments

 

17,305

 

 

2,764

 

 

3,639

 

 

 Marketable securities ($15,252, $14,296 and $13,917 carried at fair value as of March 31, 2011, December 31, 2010 and March 31, 2010 respectively)

 

25,166

 

 

24,831

 

 

13,917

 

 

 Rental deposits

 

40

 

 

40

 

 

61

 

 

 Property, plant and equipment, net

 

27,280

 

 

24,604

 

 

16,341

 

 

 Land use right

 

1,566

 

 

1,554

 

 

1,538

 

 

 Acquired intangible assets, net

 

5,721

 

 

4,318

 

 

3,552

 

 

 Deposit paid for acquisition of intangible assets

 

1,100

 

 

2,408

 

 

-

 

 

 Deferred tax assets

 

73

 

 

88

 

 

131

 

 

 Goodwill

 

468

 

 

468

 

 

-

 

 

TOTAL ASSETS

 

291,019

 

 

286,233

 

 

283,454

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 Accounts payable

 

4,371

 

 

2,850

 

 

2,518

 

 

 Accrued expenses and other current liabilities

 

4,862

 

 

7,247

 

 

5,291

 

 

 Short-term bank loan

 

6,000

 

 

-

 

 

-

 

 

 Other liabilities

 

2,479

 

 

2,502

 

 

2,196

 

 

 Income tax payable

 

240

 

 

140

 

 

-

 

 

 Deferred tax liabilities

 

265

 

 

446

 

 

380

 

 

Total current liabilities

 

18,217

 

 

13,185

 

 

10,385

 

 

 

 

 

 

 

 

 

Other liabilities

 

-

 

 

83

 

 

326

 

 

Deferred tax liabilities

 

2,438

 

 

2,286

 

 

2,072

 

 

Total liabilities

 

20,655

 

 

15,554

 

 

12,783

 

 

Equity:

 

 

 

 

 

 

 

Ordinary shares

 

1

 

 

1

 

 

1

 

 

Additional paid-in capital

 

21,695

 

 

24,252

 

 

29,822

 

 

Accumulated other comprehensive income

 

26,660

 

 

24,420

 

 

20,074

 

 

Retained earnings

 

222,037

 

 

222,032

 

 

220,774

 

 

Total Actions Semiconductor Co., Ltd. shareholders' equity

 

270,393

 

 

270,705

 

 

270,671

 

 

Noncontrolling interest

 

(29)

 

 

(26)

 

 

-

 

 

Total equity

 

270,364

 

 

270,679

 

 

270,671

 

 

TOTAL LIABILITIES AND EQUITY

 

291,019

 

 

286,233

 

 

283,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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

 

 

Three months ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2011

 

 

2010

 

 

2010

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 Third-parties:

 

 

 

 

 

 

 

  System-on-a-chip products

 

7,024

 

 

8,731

 

 

6,285

 

 

  Semiconductor product testing services

 

80

 

 

44

 

 

22

 

 

 

7,104

 

 

8,775

 

 

6,307

 

 

 Related-parties:

 

 

 

 

 

 

 

  System-on-a-chip products

 

2,262

 

 

1,960

 

 

1,583

 

 

 Total revenues

 

9,366

 

 

10,735

 

 

7,890

 

 

Cost of revenues:

 

 

 

 

 

 

 

 Third-parties:

 

 

 

 

 

 

 

  System-on-a-chip products

 

(4,349)

 

 

(5,596)

 

 

(3,793)

 

 

  Semiconductor product testing services

 

(42)

 

 

(24)

 

 

(15)

 

 

 

(4,391)

 

 

(5,620)

 

 

(3,808)

 

 

 Related-parties:

 

 

 

 

 

 

 

  System-on-a-chip products

 

(1,309)

 

 

(1,127)

 

 

(960)

 

 

 Total cost of revenues

 

(5,700)

 

 

(6,747)

 

 

(4,768)

 

 

Gross profit

 

3,666

 

 

3,988

 

 

3,122

 

 

Other operating income

 

217

 

 

22

 

 

133

 

 

Operating expenses:

 

 

 

 

 

 

 

 Research and development

 

(5,057)

 

 

(4,425)

 

 

(4,557)

 

 

 General and administrative

 

(1,695)

 

 

(2,204)

 

 

(1,740)

 

 

 Selling and marketing

 

(265)

 

 

(420)

 

 

(247)

 

 

Total operating expenses

 

(7,017)

 

 

(7,049)

 

 

(6,544)

 

 

Loss from operations

 

(3,134)

 

 

(3,039)

 

 

(3,289)

 

 

Other income

 

1,111

 

 

794

 

 

31

 

 

Fair value change in trading securities

 

1

 

 

1

 

 

132

 

 

Interest income

 

2,832

 

 

2,503

 

 

2,434

 

 

Interest expense

 

(19)

 

 

-

 

 

-

 

 

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

 

791

 

 

259

 

 

(692)

 

 

Income tax expense

 

(258)

 

 

(86)

 

 

(30)

 

 

Equity in net loss of equity method investees

 

(531)

 

 

(357)

 

 

(152)

 

 

Net income (loss)

 

2

 

 

(184)

 

 

(874)

 

 

Less: Net loss attributable to noncontrolling interest

 

3

 

 

32

 

 

-

 

 

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

 

5

 

 

(152)

 

 

(874)

 

 

 

 

 

 

 

 

 

Net income (loss) per share-basic:

 

 

 

 

 

 

 

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

 

0.00001

 

 

(0.0004)

 

 

(0.0021)

 

 

 

 

 

 

 

 

 

Net  income (loss) per share-diluted:

 

 

 

 

 

 

 

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

 

0.00001

 

 

(0.0003)

 

 

(0.0020)

 

 

 

 

 

 

 

 

 

Basic (per ADS)

 

0.00007

 

 

(0.0021)

 

 

(0.0117)

 

 

Diluted (per ADS)

 

0.00007

 

 

(0.0021)

 

 

(0.0117)

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computation:

 

 

 

 

 

 

 

Basic

 

423,324,265

 

 

430,634,573

 

 

446,860,734

 

 

Diluted

 

440,270,706

 

 

430,634,573

 

 

446,860,734

 

 

 

 

 

 

 

 

 

Weighted-average ADS used in computation :

 

 

 

 

 

 

 

Basic

 

70,554,044

 

 

71,772,429

 

 

74,476,789

 

 

Diluted

 

73,378,451

 

 

71,772,429

 

 

74,476,789

 

 

 

 

 

 

 

 

 

Note: Stock compensation recorded in each

 

 

 

 

 

 

 

expense classification above is as follows:

 

 

 

 

 

 

 

 Research and development

 

447

 

 

(159)

 

 

690

 

 

 General and administrative

 

123

 

 

(64)

 

 

275

 

 

 Selling and marketing

 

24

 

 

(12)

 

 

41

 

 

 Cost of revenues

 

5

 

 

2

 

 

-

 

 

 

 

 

 

 

 



ACTIONS SEMICONDUCTOR CO., LTD.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(in thousands of U.S. dollars)

 

 

 

Three months ended

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2011

 

 

2010

 

 

2010

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 (unaudited)  

 

 

Operating activities:

 

 

 

 

 

 

 

Net income (loss)  

 

2

 

 

(184)

 

 

(874)

 

 

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

 

-

 

 

-

 

 

-

 

 

 Operating activities:

 

 

 

 

 

 

 

 Depreciation of property, plant and equipment

 

463

 

 

543

 

 

481

 

 

 Land use right

 

9

 

 

8

 

 

8

 

 

 Allowance for doubtful accounts receivable

 

-

 

 

-

 

 

(102)

 

 

 Amortization of acquired intangible assets

 

402

 

 

472

 

 

536

 

 

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

 

(157)

 

 

-

 

 

-

 

 

 Write down of inventories

 

61

 

 

221

 

 

-

 

 

 Gain on disposal of property, plant and equipment

 

-

 

 

(12)

 

 

-

 

 

 Gain on disposal of other investments

 

-

 

 

-

 

 

(137)

 

 

 Equity in net loss of equity method investees

 

531

 

 

357

 

 

152

 

 

 Share-based compensation

 

599

 

 

(233)

 

 

1,006

 

 

 Fair value change in trading securities

 

(1)

 

 

1

 

 

3

 

 

 Deferred tax

 

153

 

 

48

 

 

213

 

 

 Changes in operating assets and liabilities:

 

 

 

 

 

 

 

   Accounts receivable

 

13

 

 

320

 

 

53

 

 

   Amount due from a related party

 

(681)

 

 

108

 

 

(237)

 

 

   Notes receivable

 

-

 

 

60

 

 

-

 

 

   Inventories

 

(515)

 

 

1,112

 

 

946

 

 

   Amount due from equity method investees

 

17

 

 

210

 

 

88

 

 

   Prepaid expenses and other current assets

 

739

 

 

(405)

 

 

(81)

 

 

   Accounts payable

 

1,485

 

 

(2,914)

 

 

163

 

 

   Accrued expenses and other current liabilities

 

(445)

 

 

1,160

 

 

(1,917)

 

 

   Income tax receivable

 

-

 

 

88

 

 

(55)

 

 

   Income tax payable

 

99

 

 

141

 

 

(129)

 

 

   Rental deposit refunded (paid)

 

-

 

 

2

 

 

(15)

 

 

Net cash provided by operating activities

 

2,774

 

 

1,103

 

 

102

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 Investment in an equity method investees

 

(2,600)

 

 

(600)

 

 

(600)

 

 

 Proceeds from disposal of other investments

 

-

 

 

-

 

 

354

 

 

 Purchase of other investments

 

(13,727)

 

 

-

 

 

-

 

 

 Purchase of trading securities

 

-

 

 

-

 

 

(470)

 

 

 Proceeds from redemption of marketable securities

 

106,833

 

 

17,399

 

 

45,235

 

 

 Purchase of marketable securities

 

(22,249)

 

 

(22,785)

 

 

(28,810)

 

 

 Proceeds from disposal of property, plant and equipment

 

-

 

 

21

 

 

-

 

 

 Purchase of property, plant and equipment

 

(4,317)

 

 

(4,216)

 

 

(761)

 

 

 Purchase of intangible assets

 

(989)

 

 

(185)

 

 

(300)

 

 

 Deposit paid for acquisition of intangible assets

 

-

 

 

(432)

 

 

-

 

 

 Decrease (increase) in time deposits

 

34

 

 

(2)

 

 

15

 

 

Net cash provided by (used in) investing activities

 

62,985

 

 

(10,800)

 

 

14,663

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 Proceeds from short-term bank loans

 

6,000

 

 

-

 

 

-

 

 

 Advance subsidy from local authorities of Beijing, Shenzhen and Zhuhai, the PRC

 

16

 

 

223

 

 

79

 

 

 Proceeds from exercise of stock options

 

134

 

 

145

 

 

-

 

 

 Repurchase of ordinary shares

 

(3,290)

 

 

(1,977)

 

 

(2,607)

 

 

Net cash provided by (used in) financing activities

 

2,860

 

 

(1,609)

 

 

(2,528)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

68,619

 

 

(11,306)

 

 

12,237

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

42,872

 

 

53,919

 

 

87,706

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

380

 

 

259

 

 

(19)

 

 

Cash and cash equivalents at the end of the period

 

111,871

 

 

42,872

 

 

99,924

 

 

 

 

 

 

 

 




Source: Actions Semiconductor Co., Ltd.
Related Stocks:
NASDAQ:ACTS
collection