ZHUHAI, China, May 7 /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, 2009.
All financial results are reported on a U.S. GAAP basis.
Revenue for the first quarter of 2009 was $12.2 million, as compared to revenue of $16.1 million for the fourth quarter of 2008, and $25.2 million for the first quarter of 2008.
Net loss attributable to Actions Semiconductor shareholders for the first quarter of 2009 was $1.5 million, or $0.02 per ADS, compared to net income attributable to Actions Semiconductor shareholders of $0.5 million, or $0.01 per ADS, for the fourth quarter of 2008, and net income attributable to Actions Semiconductor shareholders of $10.7 million, or $0.13 per ADS, for the first quarter of 2008.
Actions Semiconductor reported gross margin of 33.6% for the first quarter of 2009. Actions Semiconductor ended the quarter with $43.8 million in cash and cash equivalents together with time deposits. Trading securities and marketable securities, current and non-current, at the end of the quarter were $218.0 million.
Since the share repurchase programs started in year 2007, the Company has invested approximately $21.6 million in repurchasing its shares. As of March 31, 2009, over 8.9 million American Depositary Shares (ADSs) were repurchased.
"We delivered first quarter revenue slightly above our original expectations. Our revenue in the first quarter was driven by an increase in sales of our low end products," stated Mr. Nan-Horng Yeh, CEO of Actions Semiconductor. "As demand levels for consumer electronics continue to be impacted by the economic crisis, we believe that investing our resources in new product development with a focus on gaining traction in new geographies and end markets remains an important component of our long-term growth strategy."
"We are committed to continued cost reduction programs as the preservation of our solid balance sheet and strong cash position is a fundamental priority for our management team. We believe that our sound financials, coupled with our market position and superior product functionality, uniquely positions us with leading market share and operating flexibility in this challenging environment," concluded Mr. Yeh.
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 2009 ending June 30, 2009, Actions Semiconductor estimates revenue in the range of $9 to $12 million, gross margin of 30%-35%, and operating expenses slightly higher on a sequential basis. The second quarter 2009 estimates include share-based compensation expense in the range of $1.0 to $1.2 million.
Conference Call Details
Actions Semiconductor's first quarter 2009 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Wednesday, May 6, 2009. To participate in the live call, analysts and investors should dial 877-941-1469 (within U.S.) or 480-629-9678 (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 http://www.actions-semi.com . An audio replay of the call will be available to investors through May 8, 2009, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the passcode 4061306.
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 and the providers of those 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. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause Actions Semiconductor's actual results to differ materially from our current expectations. Factors that could cause Actions Semiconductor's results to differ materially from those set forth in these forward-looking statements include 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. Actions Semiconductor undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.
For further information, please contact:
Actions Semiconductor
Jimmy Liu
Investor Relations
Tel: +86-21-5080-3900 x1211
Email: jimmy@actions-semi.com
The Blueshirt Group
Lisa Laukkanen
Tel: +1-415-217-4967
Email: lisa@blueshirtgroup.com
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)
At March At December At March
31, 2009 31, 2008 31, 2008
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 43,696 45,435 121,068
Time deposits 103 61 1,692
Restricted cash 439 440 --
Marketable securities 187,144 201,151 129,243
Trading securities 7,076 19,299 --
Accounts receivable, net 2,502 2,435 4,509
Amount due from a related party 1,654 1,497 1,125
Notes receivable 112 74 --
Inventories 6,737 8,720 9,873
Prepaid expenses and other
current assets 1,847 1,532 2,435
Deferred tax assets 750 686 573
Total current assets 252,060 281,330 270,518
Investment in equity method
investee 3,963 4,142 1,594
Other investments 7,138 7,044 5,627
Marketable securities 23,742 -- --
Rental deposits 60 39 62
Property, plant and equipment,
net 6,914 7,144 6,737
Land use right 1,569 1,580 1,562
Acquired intangible assets, net 3,750 4,197 5,543
Deposit paid for acquisition of
property, plant and equipment 2,136 403 --
Deferred tax assets 191 206 --
TOTAL ASSETS 301,523 306,085 291,643
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 5,093 4,050 6,927
Accrued expenses and other
current liabilities 4,086 6,846 4,438
Other liabilities 1,960 1,818 706
Loan from minority shareholders 1,500 1,500 1,500
Short-term bank loan 2,926 -- --
Income tax payable 221 221 962
Deferred tax liabilities 746 480 84
Total current liabilities 16,532 14,915 14,617
Other liabilities 176 249 642
Deferred tax liabilities 1,933 1,750 554
Total liabilities 18,641 16,914 15,813
Equity:
Actions Semiconductor Co., Ltd.
shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 32,102 36,606 43,158
Accumulated other comprehensive
income 20,270 20,483 15,919
Retained earnings 230,557 232,046 216,620
Actions Semiconductor Co., Ltd.
shareholders' equity 282,930 289,136 275,698
Noncontrolling interest (48) 35 132
Total equity 282,882 289,171 275,830
TOTAL LIABILITIES AND EQUITY 301,523 306,085 291,643
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED INCOME STATEMENT
(in thousands of U.S. dollars, except per share amounts)
Three months Three months Three months
ended ended ended
March 31, December 31, March 31,
2009 2008 2008
(unaudited) (unaudited) (unaudited)
Revenues 12,239 16,052 25,193
Cost of revenues (8,130) (8,879) (11,820)
Gross profit 4,109 7,173 13,373
Other operating income 267 159 332
Operating expenses:
Research and development (4,710) (5,047) (3,754)
General and administrative (2,375) (2,746) (1,848)
Selling and marketing (290) (449) (408)
Total operating expenses (7,375) (8,242) (6,010)
(Loss) income from operations (2,999) (910) 7,695
Other (expense) income (886) (414) 1,527
Fair value change in trading
securities 41 44 --
Interest income 2,873 3,147 2,523
Interest expense (27) -- (4)
(Loss) income before income taxes,
equity in net loss of an equity
method investee and noncontrolling
interest (998) 1,867 11,741
Income tax expense (395) (1,207) (991)
Equity in net loss of an equity
method investee (179) (216) (125)
Net (loss) income (1,572) 444 10,625
Less: Net loss attributable to
noncontrolling interest 83 105 72
Net (loss) income attributable to
Actions Semiconductor Co., Ltd. (1,489) 549 10,697
Net (loss) income per share - basic
and diluted:
Net (loss) income attributable to
Actions Semiconductor Co., Ltd. 0.00 0.00 0.02
Basic and diluted (per ADS) (0.02) 0.01 0.13
Weighted-average shares used in
computation:
Basic 467,919,929 491,689,408 507,720,797
Diluted 467,919,929 491,689,408 507,720,797
Weighted-average ADS used in
computation :
Basic 77,986,655 81,948,235 84,620,133
Diluted 77,986,655 81,948,235 84,620,133
Note: Stock compensation recorded in each expense classification above is
as follows:
Cost of revenues -- 46 --
Research and development 651 573 --
General and administrative 343 273 --
Selling and marketing 52 52 --
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three Three Three
months months months
ended ended ended
March December March
31, 2009 31, 2008 31, 2008
(unaudited)(unaudited) (unaudited)
Operating activities:
Net (loss) income attributable to
Actions Semiconductor Co., Ltd. (1,489) 549 10,697
Adjustments to reconcile net (loss)
income to net cash provided by
(used in) operating activities:
Depreciation and amortization of
property, plant and equipment 544 567 475
(Reversal) allowance for doubtful
accounts receivable (60) 157 --
Amortization of acquired
intangible assets 814 788 804
Utilization of subsidy from local
authorities of Beijing and
Zhuhai, the People's Republic of
China (PRC) (226) (34) (329)
Write down of inventories 126 150 273
(Gain) loss on disposal of
property, plant and equipment (7) 7 --
Equity in net loss of an equity
method investee 179 216 125
Share-based compensation 1,046 944 --
Fair value change in trading
securities (41) (44) --
Proceeds from disposal of trading
securities 23,574 -- --
Purchase of trading securities (11,310) (9,916) --
Net Loss attributable to
noncontrolling interest (83) (105) (72)
Deferred taxes 400 983 804
Changes in operating assets and
liabilities:
Accounts receivable (7) 4,005 594
Amount due from a related party (157) 783 (182)
Notes receivable (38) 132 387
Inventories 1,846 (912) 2,869
Amount due from an equity method
investee -- -- 52
Prepaid expenses and other
current assets (321) 920 83
Accounts payable 1,050 (3,200) (5,899)
Accrued expenses and other
current liabilities (2,590) (5,025) (6,598)
Income tax payable -- (332) 189
Rental deposit (paid) refunded (21) 48 20
Net cash provided by (used in)
operating activities 13,229 (9,319) 4,292
Investing activities:
Increase in an equity method
investee -- (3,000) --
Purchases of other investments -- (2,050) (80)
(Purchases) sales of marketable
securities (10,129) (6,552) 42,980
Proceeds from disposal of
property, plant and equipment 27 -- --
Increase in deposit paid for
acquisition of property, plant
and equipment (1,733) (368) --
Increase in deposit paid for
establish a subsidiary -- 10,239 --
Purchase of property, plant and
equipment (340) (523) (482)
Purchase of intangible assets (412) (217) (295)
Decrease in restricted cash -- 6,387 1,854
(Increase) decrease in time
deposits (42) 1 1,024
Net cash (used in) from investing
activities (12,629) 3,917 45,001
Financing activities:
Proceeds from short-term bank
loans 2,926 -- --
Repayment of short-term bank
loans -- -- (1,580)
Advance subsidy from local
authorities of Beijing and
Zhuhai, the PRC 299 767 44
Proceeds from loan from minority
shareholders -- -- 1,500
Repurchase of ordinary shares (5,550) (3,122) (521)
Net cash used in financing activities (2,325) (2,355) (557)
Net (decrease) increase in cash and
cash equivalents (1,725) (7,757) 48,736
Cash and cash equivalents at the
beginning of the period 45,435 53,286 72,054
Effect of exchange rate changes on
cash (14) (94) 278
Cash and cash equivalents at the end
of the period 43,696 45,435 121,068
