ZHUHAI, China, May 14 /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, 2010.
All financial results are reported on a U.S. GAAP basis.
Revenue for the first quarter of 2010 was $7.9 million, as compared to revenue of $7.9 million for the fourth quarter of 2009, and $12.2 million for the first quarter of 2009.
Net loss attributable to Actions Semiconductor shareholders for the first quarter of 2010 was $0.9 million, or ($0.01) per ADS, compared to net loss attributable to Actions Semiconductor shareholders of $7.5 million, or ($0.10) per ADS, for the fourth quarter of 2009, and net loss attributable to Actions Semiconductor shareholders of $1.5 million, or $(0.02) per ADS, for the first quarter of 2009.
Actions Semiconductor reported gross margin of 39.6% for the first quarter of 2010, as compared to gross margin of 34.9% for the fourth quarter of 2009, and 33.6% for the first quarter of 2009. The Company ended the quarter with $100.0 million in cash and cash equivalents together with time deposits. Trading securities and marketable securities, current and non-current, were $147.9 million at the end of the quarter.
Since the share repurchase programs started in 2007, the Company has invested approximately $28.8 million in repurchasing its shares. As of March 31, 2010, approximately 12.0 million American Depositary Shares (ADSs) were repurchased.
"Our results were driven by solid demand for our products during the first quarter," stated Mr. Niccolo Chen, CEO of Actions Semiconductor. "We were pleased to see an increase in our high-end product shipments sequentially, particularly in our Series 13 and Series 25 products targeting the QVGA and D1 markets, respectively. Shipments from these product lines contributed 25%-30% of our overall revenue in the quarter, compared to approximately 20% in the fourth quarter of 2009. We were pleased to see continued improvement in our gross margin as favorable shifts in our product mix and continual cost reductions offset average selling price ("ASP") erosion during the quarter. Our new product lines targeted at the automotive, boom box and advanced MP4 sectors of the market keep driving our growth and contributing to our efforts to sustain margins. We look forward to ongoing expansions of the applications and end-markets addressed by our product portfolio through our long term R&D investments. We expect the rebound in demand for consumer electronics and stabilization of ASPs to positively impact our performance in the upcoming quarters. Our core business strategy continues to be focused on innovating our product portfolio, leveraging our sector leadership, and preserving our strong balance sheet," concluded Mr. Chen.
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 2010 ending June 30, 2010, Actions Semiconductor estimates revenue in the range of $8.5 to $9.5 million, gross margin of approximately 35%, and operating expenses slightly higher on a sequential basis. The second quarter 2010 estimates include share-based compensation of approximately $1.0 million.
Conference Call Details
Actions Semiconductor's first quarter 2010 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, May 13, 2010. To participate in the live call, analysts and investors should dial 877-941-2321 (within U.S.) or 480-629-9714 (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 14, 2010, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the passcode 4288259.
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. 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.
For further information, please contact:
Investor Contacts:
Lisa Laukkanen
The Blueshirt Group
Email: lisa@blueshirtgroup.com
Tel: +1-415-217-4967
Edward Chen
Investor Relations at Actions Semiconductor
Email: edward@actions-semi.com
Tel: +86-756-3392353*1110
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)
At March 31, At December At March 31,
2010 31, 2009 2009
(unaudited) (audited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 99,924 87,706 43,696
Time deposits 47 62 103
Restricted cash -- -- 439
Marketable securities 133,434 139,984 187,144
Trading securities 500 -- 7,076
Accounts receivable, net 1,940 1,891 2,502
Amount due from a related party 767 530 1,654
Amount due from an equity method
investee 404 492 --
Notes receivable -- -- 112
Inventories 3,555 4,501 6,737
Prepaid expenses and other current
assets 1,339 1,258 1,847
Deferred tax assets 285 371 750
Income tax receivable 55 -- --
Total current assets 242,250 236,795 252,060
Investment in equity method
investees 2,025 1,577 3,963
Other investments (NIL, $420 and
$289 carried at fair value as of
March 31, 2010, December 31, 2009
and March 31, 2009 respectively) 3,639 3,258 7,138
Marketable securities ($13,917, NIL
and NIL carried at fair value as
of March 31, 2010, December 31,
2009 and March 31, 2009
respectively) 13,917 23,773 23,742
Rental deposits 61 46 60
Property, plant and equipment, net 16,341 14,437 6,914
Land use right 1,538 1,546 1,569
Acquired intangible assets, net 3,552 3,625 3,750
Deposit paid for acquisition of
property, plant and equipment -- -- 2,136
Deferred tax assets 131 149 191
TOTAL ASSETS 283,454 285,206 301,523
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 2,518 2,355 5,093
Accrued expenses and other current
liabilities 5,291 4,626 4,086
Other liabilities 2,196 2,124 1,960
Loan from non-controlling interest -- -- 1,500
Short-term bank loan -- -- 2,926
Income tax payable -- 129 221
Deferred tax liabilities 380 284 746
Total current liabilities 10,385 9,518 16,532
Other liabilities 326 319 176
Deferred tax liabilities 2,072 2,058 1,933
Total liabilities 12,783 11,895 18,641
Equity:
Ordinary shares 1 1 1
Additional paid-in capital 29,822 31,423 32,102
Accumulated other comprehensive
income 20,074 20,239 20,270
Retained earnings 220,774 221,648 230,557
Total Actions Semiconductor Co., Ltd.
shareholders' equity 270,671 273,311 282,930
Non-controlling interest -- -- (48)
Total equity 270,671 273,311 282,882
TOTAL LIABILITIES AND EQUITY 283,454 285,206 301,523
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(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,
2010 2009 2009
(unaudited) (unaudited) (unaudited)
Revenues:
Third-parties:
System-on-a-chip products 6,285 6,787 8,230
Semiconductor product testing
services 22 53 35
6,307 6,840 8,265
Related-parties:
System-on-a-chip products 1,583 1,097 3,974
Total revenues 7,890 7,937 12,239
Cost of revenues:
Third-parties:
System-on-a-chip products (3,793) (4,337) (5,375)
Semiconductor product testing
services (15) (33) (32)
(3,808) (4,370) (5,407)
Related-parties:
System-on-a-chip products (960) (800) (2,723)
Total cost of revenues (4,768) (5,170) (8,130)
Gross profit 3,122 2,767 4,109
Other operating income 133 595 267
Operating expenses:
Research and development (4,557) (4,552) (4,710)
General and administrative (1,740) (2,249) (2,375)
Selling and marketing (247) (244) (290)
Total operating expenses (6,544) (7,045) (7,375)
Loss from operations (3,289) (3,683) (2,999)
Other income (expense) 31 29 (886)
Dividend income -- 20 --
Fair value change in financial
instruments 132 -- 41
Interest income 2,434 2,679 2,873
Other-than-temporary impairment
loss on investments -- (6,397) (27)
Loss before income taxes, equity in
net loss of equity method
investees and non-controlling
interest (692) (7,352) (998)
Income tax (expense) credit (30) 152 (395)
Equity in net loss of equity method
investees (152) (302) (179)
Net loss (874) (7,502) (1,572)
Less: Net loss attributable to non-
controlling interest -- -- 83
Net loss attributable to Actions
Semiconductor Co., Ltd. (874) (7,502) (1,489)
Net loss per share-basic and
diluted:
Net loss attributable to Actions
Semiconductor Co., Ltd. (0.002) (0.016) (0.003)
Basic and diluted (per ADS) (0.012) (0.099) (0.019)
Weighted-average shares used in
computation:
Basic 446,860,734 454,845,873 467,919,929
Basic and diluted 446,860,734 454,845,873 467,919,929
Weighted-average ADS used in
computation :
Basic 74,476,789 75,807,646 77,986,655
Basic and diluted 74,476,789 75,807,646 77,986,655
Note: Stock compensation recorded
in each expense classification
above is as follows:
Cost of revenues -- -- --
Research and development 690 582 651
General and administrative 275 316 343
Selling and marketing 41 43 52
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months Three months Three months
ended ended ended
March 31, December March 31,
2010 31, 2009 2009
(unaudited) (unaudited) (unaudited)
Operating activities:
Net loss (874) (7,502) (1,572)
Adjustments to reconcile net loss to
net cash provided by --
Operating activities: -- --
Depreciation of property, plant and
equipment 481 508 536
Land use right 8 8 8
Allowance for doubtful accounts
receivable (102) -- (60)
Amortization of acquired intangible
assets 536 475 814
Utilization of subsidy from local
authorities of Beijing and Zhuhai,
the People's Republic of China
(PRC) -- -- (226)
Write down of inventories -- 38 126
Loss (gain) on disposal of
property, plant and equipment -- 2 (7)
Gain on disposal of other
investment (137) -- --
Equity in net loss of equity method
investees 152 302 179
Share-based compensation 1,006 941 1,046
Fair value change in trading
securities 3 -- (41)
Deferred taxes 213 (178) 400
Other-than-temporary impairment
loss on investments -- 6,397 --
Proceeds from disposal of trading
securities -- -- 23,574
Purchase of trading securities -- -- (11,310)
Changes in operating assets and
liabilities:
Accounts receivable 53 907 (7)
Amount due from a related party (237) 2,421 (157)
Notes receivable -- 83 (38)
Inventories 946 206 1,846
Amount due from an equity method
investee 88 (492) --
Prepaid expenses and other
current assets (81) 67 (321)
Accounts payable 163 (2,189) 1,050
Accrued expenses and other
current liabilities (1,917) (272) (2,590)
Income tax receivable (55) -- --
Income tax payable (129) (33) --
Rental deposit (paid) refunded (15) 22 (21)
Net cash provided by operating
activities 102 1,711 13,229
Investing activities:
Increase in an equity method
investees (600) -- --
Proceeds from the disposal of other
investments 354 -- --
Purchases of trading securities (470) -- --
Proceed from redemption of
marketable securities 45,235 48,898 13,613
Purchase of marketable securities (28,810) (876) (23,742)
Proceeds from disposal of property,
plant and equipment -- 3 27
Increase in deposit paid for
acquisition of property, plant and
equipment -- -- (1,733)
Purchase of property, plant and
equipment (761) (1,695) (340)
Purchase of intangible assets (300) (387) (412)
Decrease in restricted cash -- 40 --
Decrease (increase) in time
deposits 15 -- (42)
Net cash from (used in) investing
activities 14,663 45,983 (12,629)
Financing activities:
Proceeds from short-term bank loans -- -- 2,926
Advance subsidy from local
authorities of Shenzhen and
Zhuhai, the PRC 79 (215) 299
Repurchase of ordinary shares (2,607) (2,777) (5,550)
Net cash used in financing activities (2,528) (2,992) (2,325)
Net increase (decrease) in cash and
cash equivalents 12,237 44,702 (1,725)
Cash and cash equivalents at the
beginning of the period 87,706 43,001 45,435
Effect of exchange rate changes on
cash (19) 3 (14)
Cash and cash equivalents at the end
of the period 99,924 87,706 43,696
-- -- --
