ZHUHAI, China, Feb. 4 /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 fourth quarter and fiscal year ended December 31, 2009.
All financial results are reported on a U.S. GAAP basis.
Revenue for the fourth quarter of 2009 was $7.9 million, as compared to revenue of $13.4 million for the third quarter of 2009, and $16.1 million for the fourth quarter of 2008. Revenue for the year ended December 31, 2009 was $44.1 million, compared to revenue of $95.1 million for the year ended December 31, 2008.
Net loss attributable to Actions Semiconductor shareholders for the fourth quarter of 2009 was $1.1 million, or ($0.02) per ADS, compared to net loss attributable to Actions Semiconductor shareholders of $0.6 million, or ($0.01) per ADS, for the third quarter of 2009, and net income attributable to Actions Semiconductor shareholders of $0.5 million, or $0.01 per ADS, for the fourth quarter of 2008. Net loss for the full year of 2009 was $4.0 million, compared to net income of $26.1 million reported for the full year 2008. Net loss per ADS was ($0.05) for 2009, compared to net income per ADS of $0.31 reported for the full year 2008.
Actions Semiconductor reported gross margin of 34.9% for the fourth quarter of 2009. For the full year of 2009, gross margin was 31.6%. The Company ended the year with $87.8 million in cash and cash equivalents together with time deposits. Marketable securities, current and non-current, were $163.8 million at the end of the year.
Since the share repurchase programs started in 2007, the Company has invested approximately $26.2 million in repurchasing its shares. As of December 31, 2009, approximately 10.9 million American Depositary Shares (ADSs) were repurchased.
"As expected, we did not experience the seasonality typically present in the fourth quarter," stated Mr. Niccolo Chen, CEO of Actions Semiconductor. "However, we are encouraged by the progress we made in a particularly challenging year. Our gross margin improved during the second half of the year and we successfully increased our market share in the low end and advanced product categories of the Portable Media Player ("PMP") market. Throughout the year, we operated through continued retraction of demand in the consumer electronics market, ASP erosion, and an extremely competitive pricing environment. I continue to appreciate our management team's ability to implement successful cost reduction programs and to manage expenses. Despite 2009's challenges, we were pleased to close the year with a strong balance sheet, more diversified business, and improved cost controls.
"We are encouraged to see positive indicators in the sector for next year. The continued proliferation of applications within the PMP market and incremental rebound of overall demand for these products should drive growth in the market. We believe that our commitment to investing in R&D throughout the downturn has positioned Actions to capture some upside from these trends. Our unique positioning has enabled us to leverage our sector leadership, innovative functionality offerings, and dynamic business model to gain traction in new markets and to continue to pursue our long-term growth strategy," 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 first quarter of fiscal year 2010 ending March 31, 2010, Actions Semiconductor estimates revenue in the range of $6.5 to $7.5 million, gross margin of approximately 35%, and operating expenses slightly higher on a sequential basis. The first quarter 2010 estimates include share-based compensation expense in the range of $0.9 to $1.0 million.
Conference Call Details
Actions Semiconductor's fourth quarter and fiscal year 2009 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Wednesday, February 3, 2010. To participate in the live call, analysts and investors should dial 877-941-2321 (within U.S.) or +1-480-629-9714 (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 February 5, 2010, by dialing 800-406-7325 (within U.S.) or +1-303-590-3030 (outside U.S.) and entering the passcode 4202663.
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:
Investor Relations at Actions Semiconductor
Edward Chen
Tel: +86-756-3392353 x1110
Email: edward@actions-semi.com
The Blueshirt Group
Lisa Laukkanen
Tel: +1-415-217-4967
Email: lisa@blueshirtgroup.com
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands of U.S. dollars)
At December At September At December
31, 2009 30, 2009 31, 2008
(unaudited) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 87,706 43,001 45,435
Time deposits 62 62 61
Restricted cash -- 40 440
Marketable securities 139,984 158,682 201,151
Trading securities -- -- 19,299
Accounts receivable, net 1,891 2,798 2,435
Amount due from related parties 530 2,951 1,497
Amount due from affiliate 492 -- --
Notes receivable -- 83 74
Inventories 4,501 4,743 8,720
Prepaid expenses and other current
assets 1,258 1,325 1,532
Deferred tax assets 371 343 686
Total current assets 236,795 214,028 281,330
Investment in equity method
investee 4,974 5,276 4,142
Other investments 6,258 6,158 7,044
Marketable securities 23,773 53,053 --
Rental deposits 46 68 39
Property, plant and equipment, net 14,437 12,143 7,144
Land use right 1,546 1,554 1,580
Acquired intangible assets, net 3,625 3,544 4,197
Deposit paid for acquisition of
property, plant and equipment -- 182 403
Deferred tax assets 149 163 206
TOTAL ASSETS 291,603 296,169 306,085
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 2,355 4,544 4,050
Accrued expenses and other current
liabilities 4,626 3,829 6,846
Other liabilities 2,124 2,292 1,818
Loan from minority shareholders -- -- 1,500
Income tax payable 129 162 221
Deferred tax liabilities 284 416 480
Total current liabilities 9,518 11,243 14,915
Other liabilities 319 366 249
Deferred tax liabilities 2,058 2,091 1,750
Total liabilities 11,895 13,700 16,914
Equity:
Actions Semiconductor Co. Ltd
shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 31,423 33,259 36,606
Accumulated other comprehensive
income 20,239 20,059 20,483
Retained earnings 228,045 229,150 232,046
Total Actions Semiconductor Co., Ltd.
shareholders' equity 279,708 282,469 289,136
Noncontrolling interest -- -- 35
Total equity 279,708 282,469 289,171
TOTAL LIABILITIES AND EQUITY 291,603 296,169 306,085
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands of U.S. dollars, except per share amounts)
Three months Three months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Third-parties:
System-on-a-chip
products 6,787 10,592 31,482 70,528
Semiconductor
product testing
services 53 56 203 214
6,840 10,648 31,685 70,742
Related-parties:
System-on-a-chip
products 1,097 5,404 12,455 24,388
Total revenues 7,937 16,052 44,140 95,130
Cost of revenues:
Third-parties:
System-on-a-chip
products (4,337) (5,914) (21,322) (35,090)
Semiconductor
product testing
services (33) (44) (117) (177)
(4,370) (5,958) (21,439) (35,267)
Related-parties:
System-on-a-chip
products (800) (2,921) (8,771) (12,158)
Total cost of
revenues (5,170) (8,879) (30,210) (47,425)
Gross profit 2,767 7,173 13,930 47,705
Other operating income 595 159 918 797
Gain on deemed
disposal -- -- 1,736 --
Operating expenses:
Research and
development (4,552) (5,047) (19,295) (19,477)
General and
administrative (2,249) (2,746) (8,812) (10,399)
Selling and
marketing (244) (449) (1,115) (1,694)
Total operating
expenses (7,045) (8,242) (29,222) (31,570)
(Loss) income from
operations (3,683) (910) (12,638) 16,932
Other income (expense) 29 (414) (654) 1,213
Dividend income 20 -- 440 20
Fair value change in
trading securities -- 44 40 92
Interest income 2,679 3,147 10,977 11,912
Interest expense -- -- (57) (4)
Other-than-temporary
impairment loss on
investments -- -- (1,010) --
(Loss) income before
income taxes, equity
in net loss of
an equity method
investee and
noncontrolling
interest (955) 1,867 (2,902) 30,165
Income tax credit
(expense) 152 (1,207) (537) (3,632)
Equity in net loss of
an equity method
investee (302) (216) (826) (576)
Net (loss) income (1,105) 444 (4,265) 25,957
Less: Net income
attributable to
noncontrolling
interest -- 105 264 166
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (1,105) 549 (4,001) 26,123
Net (loss) income per
share-basic and
diluted:
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (0.002) 0.001 (0.009) 0.052
Basic and diluted (per
ADS) (0.015) 0.007 (0.052) 0.312
Weighted-average
shares used in
computation:
Basic 454,845,873 491,689,408 460,812,477 501,763,805
Basic and diluted 454,845,873 491,689,408 460,812,477 501,763,805
Weighted-average ADS
used in computation :
Basic 75,807,646 81,948,235 76,802,080 83,627,301
Basic and diluted 75,807,646 81,948,235 76,802,080 83,627,301
Note: Stock
compensation recorded
in each expense
classification
above is as follows:
Cost of revenues -- 46 -- 112
Research and
development 582 573 2,475 1,394
General and
administrative 316 273 1,335 662
Selling and
marketing 43 52 196 127
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months Year Year
ended ended ended
December December December
31, 2009 31, 2009 31, 2008
(unaudited) (unaudited) (unaudited)
Operating activities:
Net (loss) income (1,105) (4,265) 25,957
Adjustments to reconcile net (loss)
income to net cash provided by
(used in) operating activities:
Depreciation and amortization of
property, plant and equipment 516 2,107 2,085
Allowance for doubtful accounts
receivable -- (56) 496
Amortization of acquired intangible
assets 475 2,833 3,232
Utilization of subsidy from local
authorities of Zhuhai, the
People's Republic of China (PRC) -- (226) (602)
Write down of inventories 20 (16) 901
(Gain) loss on disposal of
property, plant and equipment 2 (5) 70
Gain on disposal of other
investment -- -- (6)
Equity in net loss of an equity
method investee 302 826 576
Share-based compensation 941 4,006 2,295
Fair value change in trading
securities -- (40) (92)
Deferred taxes (178) 484 2,083
Gain on disposal of a subsidiary -- (1,736) --
Other-than-temporary impairment
loss on investments -- 1,010 --
Changes in operating assets and
liabilities:
Proceeds from disposal of trading
securities -- 30,649 17,111
Purchase of trading securities -- (11,310) (36,318)
Accounts receivable 907 (1,305) 2,169
Amount due from a related party 2,421 967 (554)
Notes receivable 83 74 315
Inventories 224 3,462 3,611
Amount due from an equity method
investee (492) (492) 52
Prepaid expenses and other
current assets 67 (526) 1,601
Accounts payable (2,189) (301) (8,999)
Accrued expenses and other
current liabilities (206) 1,664 (5,522)
Income tax payable (33) (93) (576)
Rental deposit paid 22 (7) 45
Net cash provided by operating
activities 1,777 27,704 9,930
Investing activities:
Increase in investment in affiliate -- (1,500) (3,000)
Proceeds from the disposal of other
investments -- 44 --
Purchases of other investments -- -- (2,215)
Decrease (Increase) in marketable
securities 48,022 37,233 (25,575)
Proceeds from disposal of property,
plant and equipment 3 30 18
Increase in deposit paid for
acquisition of property, plant and
equipment -- (1,733) (368)
Purchase of property, plant and
equipment (1,695) (6,613) (2,429)
Purchase of intangible assets (453) (3,140) (1,194)
Decrease in restricted cash 40 439 1,389
Decrease in time deposits -- 7 2,691
Cash outflow from disposal of
subsidiary, net of cash equivalent
disposed -- (2,707) --
Net cash used in investing activities 45,917 22,060 (30,683)
Financing activities:
Repayment of short-term bank loan -- (2) (1,580)
(Recognization) Advance subsidy
from local authorities of Zhuhai
and Shenzhen, the PRC (215) 750 1,025
Proceeds from loan from minority
shareholders -- -- 1,500
Repurchase of ordinary shares (2,777) (10,130) (9,368)
Proceeds on issue of shares of
subsidiary -- 1,885 --
Net cash used in financing activities (2,992) (7,497) (8,423)
Net increase (decrease) in cash and
cash equivalents 44,702 42,267 (29,176)
Cash and cash equivalents at the
beginning of the period 43,001 45,435 72,054
Effect of exchange rate changes on
cash 3 4 2,557
Cash and cash equivalents at the end
of the period 87,706 87,706 45,435