ZHUHAI, China, Aug. 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 second quarter ended June 30, 2009.
All financial results are reported on a U.S. GAAP basis.
Revenue for the second quarter of 2009 was $10.5 million, as compared to revenue of $12.2 million for the first quarter of 2009, and $26.6 million for the second quarter of 2008.
Net loss attributable to Actions Semiconductor shareholders for the second quarter of 2009 was $0.8 million, or $0.01 per ADS, compared to net loss attributable to Actions Semiconductor shareholders of $1.5 million, or $0.02 per ADS, for the first quarter of 2009, and net income attributable to Actions Semiconductor shareholders of $7.6 million, or $0.09 per ADS, for the second quarter of 2008.
Actions Semiconductor reported gross margin of 27.7% for the second quarter of 2009. Actions Semiconductor ended the quarter with $76.3 million in cash and cash equivalents together with time deposits. Marketable securities, current and non-current, at the end of the quarter were $183.0 million.
Since the share repurchase programs started in 2007, the Company has invested approximately $22.4 million in repurchasing its shares. As of June 30, 2009, over 9.3 million American Depositary Shares (ADSs) were repurchased.
"We are pleased to report a sequential improvement in our bottom line results and to deliver revenue within our guidance range as we continue to operate in an extremely difficult environment," stated Mr. Nan-Horng Yeh, CEO of Actions Semiconductor. "During the quarter, our products targeting both the fast growing low end and advanced market segments experienced increased demand, impacting our gross margin, which came in slightly below our original expectations for the quarter. The management team remains committed to further cost controls and balance sheet preservation to maximize near term operating flexibility while working diligently to execute our growth strategy and strategically position ourselves in anticipation of market recovery. As we continue to target and develop new sales channels, we are maintaining our focus on technological innovation and commitment to delivering superior functionality," 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 third quarter of fiscal year 2009 ending September 30, 2009, Actions Semiconductor estimates revenue in the range of $11 to $13 million, gross margin of 25%-30%, and operating expenses slightly higher on a sequential basis. The third quarter 2009 estimates include share-based compensation expense in the range of $0.9 to $1.0 million.
Conference Call Details
Actions Semiconductor's second quarter 2009 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Monday, August 3, 2009. To participate in the live call, analysts and investors should dial 877-941-8416 (within U.S.) or +1-480-629-9808 (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 August 5, 2009, by dialing 800-406-7325 (within U.S.) or +1-303-590-3030 (outside U.S.) and entering the passcode 4117082.
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.
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands of U.S. dollars)
At June At March At December
30, 2009 31, 2009 31, 2008
(unaudited) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 76,222 43,696 45,435
Time deposits 107 103 61
Restricted cash 399 439 440
Marketable securities 159,282 187,144 201,151
Trading securities -- 7,076 19,299
Accounts receivable, net 3,142 2,502 2,435
Amount due from a related party 936 1,654 1,497
Notes receivable 64 112 74
Inventories 6,301 6,737 8,720
Prepaid expenses and other
current assets 2,394 1,847 1,532
Deferred tax assets 674 750 686
Income tax receivable 187 -- --
Total current assets 249,708 252,060 281,330
Investment in equity method
investee 3,802 3,963 4,142
Other investments 7,153 7,138 7,044
Marketable securities 23,756 23,742 --
Rental deposits 60 60 39
Property, plant and equipment,
net 9,417 6,914 7,144
Land use right 1,561 1,569 1,580
Acquired intangible assets, net 4,157 3,750 4,197
Deposit paid for acquisition of
property, plant and equipment 1,333 2,136 403
Deferred tax assets 178 191 206
TOTAL ASSETS 301,125 301,523 306,085
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 5,824 5,093 4,050
Accrued expenses and other
current liabilities 4,512 4,086 6,846
Other liabilities 2,313 1,960 1,818
Loan from minority shareholders 1,500 1,500 1,500
Short-term bank loan -- 2,926 --
Income tax payable 9 221 221
Deferred tax liabilities 842 746 480
Total current liabilities 15,000 16,532 14,915
Other liabilities -- 176 249
Deferred tax liabilities 1,963 1,933 1,750
Total liabilities 16,963 18,641 16,914
Equity:
Actions Semiconductor Co., Ltd.
shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 33,352 32,102 36,606
Accumulated other comprehensive
income 20,239 20,270 20,483
Retained earnings 229,780 230,557 232,046
Actions Semiconductor Co., Ltd.
shareholders' equity 283,372 282,930 289,136
Noncontrolling interest 790 (48) 35
Total equity 284,162 282,882 289,171
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 301,125 301,523 306,085
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED INCOME STATEMENT
(in thousands of U.S. dollars, except per share amounts)
Three months Three months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Third-parties:
System-on-a-chip
products 7,406 20,434 15,636 40,874
Semiconductor
product testing
services 49 43 84 75
7,455 20,477 15,720 40,949
Related-parties:
System-on-a-chip
products 3,077 6,109 7,051 10,830
Semiconductor
product testing
services -- -- -- --
3,077 6,109 7,051 10,830
Total revenues 10,532 26,586 22,771 51,779
Cost of revenues:
Third-parties:
System-on-a-chip
products (5,306) (10,339) (10,681) (19,966)
Semiconductor
product testing
services (27) (33) (59) (69)
(5,333) (10,372) (10,740) (20,035)
Related-parties:
System-on-a-chip
products (2,284) (2,899) (5,007) (5,056)
Semiconductor
product testing
services -- -- -- --
(2,284) (2,899) (5,007) (5,056)
Total cost of
revenues (7,617) (13,271) (15,747) (25,091)
Gross profit 2,915 13,315 7,024 26,688
Other operating income 6 245 273 577
Operating expenses:
Research and
development (4,956) (5,834) (9,666) (9,588)
General and
administrative (1,795) (2,873) (4,170) (4,721)
Selling and
marketing (290) (418) (580) (826)
Total operating
expenses (7,041) (9,125) (14,416) (15,135)
(Loss) income from
operations (4,120) 4,435 (7,119) 12,130
Other income (expense) 161 885 (726) 2,412
Fair value change in
trading securities 1 -- 42 --
Interest income 3,116 2,822 5,990 5,345
Interest expense (32) -- (59) (4)
(Loss) income before
income taxes, equity
in net loss of an
equity method
investee and
noncontrolling
interest (874) 8,142 (1,872) 19,883
Income tax credit
(expense) 153 (385) (242) (1,376)
Equity in net loss of
an equity method
investee (161) (120) (340) (244)
Net (loss) income (882) 7,637 (2,454) 18,263
Less: Net income (loss)
attributable to
noncontrolling
interest 105 (45) 188 27
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (777) 7,592 (2,266) 18,290
Net (loss) income per
share-basic and
diluted:
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (0.002) 0.015 (0.005) 0.036
Basic and diluted (per
ADS) (0.010) 0.090 (0.029) 0.216
Weighted-average
shares used in
computation:
Basic 461,911,062 506,576,005 464,898,891 507,148,405
Basic and diluted 461,911,062 506,576,005 464,898,891 507,148,405
Weighted-average ADS
used in computation :
Basic 76,985,177 84,429,334 77,483,149 84,524,734
Basic and diluted 76,985,177 84,429,334 77,483,149 84,524,734
Note: Stock compensation recorded in each expense classification above is
as follows:
Cost of revenues -- 20 -- 20
Research and
development 681 248 1,332 248
General and
administrative 351 117 693 117
Selling and
marketing 54 23 107 23
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months Six months Six months
ended June ended June ended June
30, 2009 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited)
Operating activities:
Net (loss) income attributable to
Actions Semiconductor Co., Ltd. (777) (2,266) 18,290
Adjustments to reconcile net (loss)
income to net cash provided by (used
in) operating activities:
Depreciation and amortization of
property, plant and equipment 533 1,077 993
Reversal for doubtful accounts
receivable -- (60) --
Amortization of acquired
intangible assets 766 1,580 1,574
Utilization of subsidy from local
authorities of Zhuhai, the
People's Republic of China (PRC) -- (226) --
Write down of inventories (202) (76) --
(Gain) loss on disposal of
property, plant and equipment -- (7) 62
Gain on disposal of other
investment -- -- (6)
Equity in net loss of an equity
method investee 161 340 244
Share-based compensation 1,086 2,132 408
Fair value change in trading
securities 1 (40) --
Proceeds from disposal of trading
securities 7,075 30,649 --
Purchase of trading securities -- (11,310) --
Net Loss (income) attributable to
noncontrolling interest 1,780 1,697 (30)
Deferred taxes 213 613 605
Changes in operating assets and
liabilities:
Accounts receivable (640) (647) 372
Amount due from a related party 718 561 --
Notes receivable 48 10 193
Inventories 642 2,488 5,795
Prepaid expenses and other
current assets (545) (866) 464
Amount due from an affiliate -- -- 52
Accounts payable 729 1,779 (4,665)
Accrued expenses and other
current liabilities 387 (2,203) (5,433)
Income tax receivable (187) (187) --
Income tax payable (212) (212) (229)
Rental deposit paid -- (21) (3)
Net cash provided by operating
activities 11,576 24,805 18,686
Investing activities:
Purchases of other investments -- -- (115)
Sales of marketable securities 27,971 17,842 35,143
Proceeds from disposal of
property, plant and equipment -- 27 --
Increase in deposit paid for
acquisition of property, plant
and equipment -- (1,733) --
Purchase of property, plant and
equipment (1,768) (2,108) (857)
Purchase of intangible assets (1,773) (2,185) (608)
Decrease in restricted cash 40 40 1,079
(Increase) decrease in time
deposits -- (42) 2,484
Net cash provided by investing
activities 24,470 11,841 37,126
Financing activities:
Repayment of short-term bank loan (2,928) (2) (1,580)
Advance subsidy from local
authorities of Zhuhai, the PRC 176 475 (438)
Proceeds from loan from minority
shareholders -- -- 1,500
Repurchase of ordinary shares (778) (6,328) (2,495)
Net cash used in financing activities (3,530) (5,855) (3,013)
Net increase in cash and cash
equivalents 32,516 30,791 52,799
Cash and cash equivalents at the
beginning of the period 43,696 45,435 72,054
Effect of exchange rate changes on
cash 10 (4) 1,892
Cash and cash equivalents at the end
of the period 76,222 76,222 126,745
