ZHUHAI, China, Nov. 6 /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 third quarter ended September 30, 2009.
All financial results are reported on a U.S. GAAP basis.
Revenue for the third quarter of 2009 was $13.4 million, as compared to revenue of $10.5 million for the second quarter of 2009, and $27.3 million for the third quarter of 2008.
Net loss attributable to Actions Semiconductor shareholders for the third quarter of 2009 was $0.6 million, or ($0.01) per ADS, compared to net loss attributable to Actions Semiconductor shareholders of $0.8 million, or ($0.01) per ADS, for the second quarter of 2009, and net income attributable to Actions Semiconductor shareholders of $7.3 million, or $0.09 per ADS, for the third quarter of 2008.
Gain on deemed disposal of $1.7 million was recorded in the third quarter, as a result of diluting our share ownership in Actions Beijing from 80% as a subsidiary to 35% as an equity method invested company.
Actions Semiconductor reported gross margin of 30.8% for the third quarter of 2009. Actions Semiconductor ended the quarter with $43.1 million in cash and cash equivalents together with time deposits. Marketable securities, current and non-current, at the end of the quarter were $211.7 million.
Since the share repurchase programs started in 2007, the Company has invested approximately $23.4 million in repurchasing its shares. As of September 30, 2009, approximately 9.8 million American Depositary Shares (ADSs) were repurchased.
"Our third quarter results were driven by improving demand in our automotive MP3 and low end as well as advanced Portable Media Player ("PMP") product categories," stated Mr. Nan-Horng Yeh, CEO of Actions Semiconductor. "During the third quarter, our market share in these product categories continued to grow and sales in these categories accounted for more than half of our total revenue. We are pleased to report an improvement in gross margin for the third quarter compared to the second quarter of 2009, which reflects the positive impact from our manufacturing cost reduction initiatives as we have been migrating to a smaller geometry. As the challenging operating environment continues, our management team remains focused on strengthening our competitive position, closely managing costs, and maintaining our strong balance sheet. We continue to believe that our differentiators are our operating flexibility, unique business model, and commitment to technological innovation."
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 fourth quarter of fiscal year 2009 ending December 31, 2009, Actions Semiconductor estimates revenue in the range of $8.5 to $10.5 million, gross margin of 27%-30%, and operating expenses slightly higher on a sequential basis. The fourth quarter 2009 estimates include share-based compensation expense in the range of $0.9 to $1.0 million.
Conference Call Details
Actions Semiconductor's third quarter 2009 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, November 5, 2009. To participate in the live call, analysts and investors should dial 877-941-2069 (within U.S.) or +1-480-629-9713 (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 November 7, 2009, by dialing 800-406-7325 (within U.S.) or +1-303-590-3030 (outside U.S.) and entering the passcode 4164742.
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 September At June At December
30, 30, 31,
2009 2009 2008
(unaudited) (unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents 43,001 76,222 45,435
Time deposits 62 107 61
Restricted cash 40 399 440
Marketable securities 158,682 159,282 201,151
Trading securities -- -- 19,299
Accounts receivable, net 2,798 3,142 2,435
Amount due from related parties 2,951 936 1,497
Notes receivable 83 64 74
Inventories 4,743 6,301 8,720
Prepaid expenses and other
current assets 1,325 2,394 1,532
Deferred tax assets 343 674 686
Income tax receivable -- 187 --
Total current assets 214,028 249,708 281,330
Investment in equity method
investee 5,276 3,802 4,142
Other investments 6,158 7,153 7,044
Marketable securities 53,053 23,756 --
Rental deposits 68 60 39
Property, plant and equipment,
net 12,143 9,417 7,144
Land use right 1,554 1,561 1,580
Acquired intangible assets, net 3,544 4,157 4,197
Deposit paid for acquisition of
property, plant and equipment 182 1,333 403
Deferred tax assets 163 178 206
TOTAL ASSETS 296,169 301,125 306,085
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 4,544 5,824 4,050
Accrued expenses and other
current liabilities 3,829 4,512 6,846
Other liabilities 2,292 2,313 1,818
Loan from minority shareholders -- 1,500 1,500
Income tax payable 162 9 221
Deferred tax liabilities 416 842 480
Total current liabilities 11,243 15,000 14,915
Other liabilities 366 -- 249
Deferred tax liabilities 2,091 1,963 1,750
Total liabilities 13,700 16,963 16,914
Equity:
Actions Semiconductor Co. Ltd
shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 33,259 33,352 36,606
Accumulated other comprehensive
income 20,059 20,239 20,483
Retained earnings 229,150 229,780 232,046
Total Actions Semiconductor
Co., Ltd. shareholders' equity 282,469 283,372 289,136
Noncontrolling interest -- 790 35
Total equity 282,469 284,162 289,171
TOTAL LIABILITIES AND EQUITY 296,169 301,125 306,085
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands of U.S. dollars, except per share amounts)
Three months Three months Nine months Nine months
ended ended ended ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Third-parties:
System-on-a-chip
products 9,059 19,062 24,695 59,936
Semiconductor
product testing
services 66 82 150 157
9,125 19,144 24,845 60,093
Related-parties:
System-on-a-chip
products 4,307 8,154 11,358 18,984
Total revenues 13,432 27,298 36,203 79,077
Cost of revenues:
Third-parties:
System-on-a-chip
products (6,303) (9,207) (16,984) (29,173)
Semiconductor
product testing
services (26) (64) (85) (133)
(6,329) (9,271) (17,069) (29,306)
Related-parties:
System-on-a-chip
products (2,964) (4,184) (7,971) (9,240)
Total cost of
revenues (9,293) (13,455) (25,040) (38,546)
Gross profit 4,139 13,843 11,163 40,531
Other operating income 50 59 323 636
Gain on deemed
disposal 1,736 -- 1,736 --
Operating expenses:
Research and
development (5,077) (4,842) (14,743) (14,430)
General and
administrative (2,394) (2,932) (6,564) (7,653)
Selling and
marketing (290) (419) (870) (1,245)
Total operating
expenses (7,761) (8,193) (22,177) (23,328)
(Loss) income from
operations (1,836) 5,709 (8,955) 17,839
Other income (expense) 42 (784) (684) 1,628
Dividend income 420 20 420 20
Fair value change in
trading securities -- 48 42 48
Interest income 2,307 3,421 8,297 8,766
Interest expense -- -- (59) (4)
Other-than-temporary
impairment loss on
investments (1,010) -- (1,010) --
(Loss) income before
income taxes, equity
in net loss of
an equity method
investee and
noncontrolling
interest (77) 8,414 (1,949) 28,297
Income tax expense (446) (1,048) (688) (2,424)
Equity in net loss of
an equity method
investee (183) (116) (523) (360)
Net (loss) income (706) 7,250 (3,160) 25,513
Less: Net income
attributable to
noncontrolling
interest 76 34 264 61
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (630) 7,284 (2,896) 25,574
Net (loss) income per
share-basic and
diluted:
Net (loss) income
attributable to
Actions Semiconductor
Co., Ltd. (0.001) 0.015 (0.006) 0.051
Basic and diluted (per
ADS) (0.008) 0.087 (0.038) 0.304
Weighted-average
shares used in
computation:
Basic 458,739,496 501,332,494 462,823,200 505,195,617
Basic and diluted 458,739,496 501,332,494 462,823,200 505,195,617
Weighted-average ADS
used in computation :
Basic 76,456,583 83,555,416 77,137,200 84,199,270
Basic and diluted 76,456,583 83,555,416 77,137,200 84,199,270
Note: Stock
compensation recorded
in each expense
classification
above is as follows:
Cost of revenues -- 46 -- 66
Research and
development 561 573 1,893 821
General and
administrative 326 272 1,019 389
Selling and
marketing 46 52 153 75
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months Nine months Nine months
ended ended ended
September September September
30, 2009 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited)
Operating activities:
Net (loss) income attributable to
Actions Semiconductor Co., Ltd. (630) (2,896) 25,574
Adjustments to reconcile net (loss)
income to net cash provided by (used
in) operating activities:
Depreciation and amortization of
property, plant and equipment 514 1,591 1,518
Reversal for doubtful accounts
receivable 60 -- --
Amortization of acquired
intangible assets 778 2,358 2,444
Utilization of subsidy from local
authorities of Zhuhai, the
People's Republic of China (PRC) -- (226) --
Write down of inventories 40 (36) --
(Gain) loss on disposal of
property, plant and equipment -- (7) 63
Gain on disposal of other
investment -- -- (6)
Dividend income -- -- (20)
Equity in net loss of an equity
method investee 184 524 360
Share-based compensation 933 3,065 1,351
Fair value change in trading
securities -- (40) (48)
Proceeds from disposal of trading
securities -- 30,649 --
Purchase of trading securities -- (11,310) --
Net income attributable to
noncontrolling interest (76) (264) (64)
Deferred taxes 49 662 1,100
Gain on disposal of a subsidiary (1,736) (1,736) --
Other-than-temporary impairment
loss on investments 1,010 1,010 --
Changes in operating assets and
liabilities:
Accounts receivable (1,621) (2,268) (2,834)
Amount due from a related party (2,015) (1,454) --
Notes receivable (19) (9) 183
Inventories 750 3,238 5,274
Prepaid expenses and other
current assets 273 (593) 681
Amount due from an affiliate -- -- 52
Accounts payable 109 1,888 (5,799)
Accrued expenses and other
current liabilities 4,073 1,870 (497)
Income tax receivable 187 -- --
Income tax payable 152 (60) (244)
Rental deposit paid (8) (29) (3)
Net cash provided by operating
activities 3,007 25,927 29,085
Investing activities:
Dividend from other investment -- -- 20
Increase in investment in
affiliate (1,500) (1,500) --
Proceeds from the disposal of
other investments 44 44 --
Deposit paid to establish an
investment -- -- (10,239)
Purchases of other investments -- -- (165)
Increase in marketable securities (28,631) (10,789) (19,023)
Purchases of trading securities -- -- (26,402)
Proceeds from disposal of trading
securities -- -- 17,111
Proceeds from disposal of
property, plant and equipment -- 27 18
Increase in deposit paid for
acquisition of property, plant
and equipment -- (1,733) --
Purchase of property, plant and
equipment (2,810) (4,918) (1,906)
Purchase of intangible assets (502) (2,687) (977)
Decrease (increase) in restricted
cash 359 399 (4,998)
Decrease in time deposits 49 7 2,690
Cash outflow from disposal of
subsidiary, net of cash
equivalent disposed (2,707) (2,707) --
Net cash used in investing activities (35,698) (23,857) (43,871)
Financing activities:
Repayment of short-term bank loan -- (2) (1,580)
Advance subsidy from local
authorities of Zhuhai and
Shenzhen, the PRC 490 965 (334)
Proceeds from loan from minority
shareholders -- -- 1,500
Repurchase of ordinary shares (1,025) (7,353) (6,246)
Proceeds on issue of shares of
subsidiary -- 1,885 --
Net cash used in financing activities (535) (4,505) (6,660)
Net decrease in cash and cash
equivalents (33,226) (2,435) (21,446)
Cash and cash equivalents at the
beginning of the period 76,222 45,435 72,054
Effect of exchange rate changes on
cash 5 1 2,678
Cash and cash equivalents at the end
of the period 43,001 43,001 53,286
