Actions Semiconductor Reports First Quarter 2012 Results
ZHUHAI, China, May 8, 2012 /PRNewswire-Asia-FirstCall/ — Actions Semiconductor Co., Ltd. (Nasdaq: ACTS), one of China’s leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (SoC) solutions for portable consumer electronics, today reported its financial results for the first quarter ended March 31, 2012.
All financial results are reported on a U.S. GAAP basis.
Revenue for the first quarter of 2012 was $10.7 million, as compared to revenue of $12.3 million for the fourth quarter of 2011, and $9.4 million for the first quarter of 2011.
Net loss attributable to Actions Semiconductor’s shareholders for the first quarter of 2012 was $0.65 million or $0.01 per ADS. This compares to net loss attributable to Actions Semiconductor’s shareholders of $0.11 million or $0.00 per ADS, for the fourth quarter of 2011, and net income attributable to Actions Semiconductor’s shareholders of $5 thousand or $0.00 per ADS, for the first quarter of 2011.
Actions Semiconductor reported gross margin of 34.9% for the first quarter of 2012, compared to gross margin of 37.6% for the fourth quarter of 2011, and 39.1% for the first quarter of 2011. The Company ended the first quarter with $33.8 million in cash and cash equivalents. Trading securities, and marketable securities, current and non-current, were $187.8 million at the end of the first quarter.
Since the share repurchase program commenced in 2007, the Company has invested approximately $42.5 million in repurchasing its shares. As of March 31, 2012, approximately 18.3 million American Depositary Shares (ADSs) were repurchased.
“We were pleased to deliver better than expected revenue for the first quarter despite the typical seasonality and fewer working days in the quarter,” stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor. “While we saw our product mix shift to a higher percentage of revenue from our more value-oriented solutions such as our automotive products, we maintained our leading market share position in higher end HD products, mainstream portable video and portable audio products.”
“We are enthusiastic about our recently launched ATM701x product family targeting the tablet market. The product has been well received to date. We commenced volume shipments in May with several customers and expect to begin seeing a contribution from this new product in the second half of 2012,” concluded Dr. Zhou.
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 2012 ending June 30, 2012, Actions Semiconductor estimates revenue in the range of $12 to $13 million, gross margin of approximately 36%.
Conference Call Details
Actions Semiconductor’s first quarter 2012 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, May 8, 2012. To participate in the live call, analysts and investors should dial 877-941-2068 (within U.S.) or 480-629-9712 (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 www.actions-semi.com. An audio replay of the call will be available to investors through May 18, 2012 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4533864.
About Actions Semiconductor
Actions Semiconductor is one of China’s leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (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. 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.
Investor Contacts:
Lisa Laukkanen Edward Chen
The Blueshirt Group Investor Relations at Actions Semiconductor
lisa@blueshirtgroup.com edward@actions-semi.com
415-217-4967 +86-756-3392353*1110
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands of U.S. dollars)
At March 31, At December 31, At March 31,
2012 2011 2011
---- ---- ----
(unaudited) (audited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 33,795 33,207 111,871
Marketable securities 187,223 186,890 80,931
Trading securities 545 530 543
Accounts receivable, net
of allowance for doubtful
accounts of $621, $621
and $621 as of
March31,2012, December
31,2011 and March
31,2011, respectively 1,869 2,794 1,831
Amount due from a related
party 34 9 1,240
Amount due from an equity
method investee 114 64 90
Inventories 6,981 7,477 5,336
Prepaid expenses and other
current assets 1,402 1,675 2,561
Deferred tax assets 403 430 231
Total current assets 232,366 233,076 204,634
------- ------- -------
Investments in equity
method investees 14,208 14,246 7,666
Other investments 17,340 17,334 17,305
Marketable securities
(nil, nil and $15,252
carried at fair value as
of March 31 2012,
December 31, 2011 and
March 31, 2011,
respectively) - - 25,166
Rental deposits 52 49 40
Property, plant and
equipment, net 33,034 32,939 27,280
Land use right 1,595 1,593 1,566
Acquired intangible
assets, net 9,293 9,859 5,721
Deposit paid for
acquisition of intangible
assets - - 1,100
Deferred tax assets 11 27 73
Goodwill - - 468
TOTAL ASSETS 307,899 309,123 291,019
------- ------- -------
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 5,007 4,374 4,371
Accrued expenses and other
current liabilities 5,543 8,605 4,862
Short-term bank loan 12,000 12,000 6,000
Other liabilities 1,999 1,954 2,479
Income tax payable 357 238 240
Deferred tax liabilities 446 295 265
Total current liabilities 25,352 27,466 18,217
------ ------ ------
Other liabilities 461 458 -
Payable for acquisition of
intangible assets 153 153 -
Deferred tax liabilities 2,912 2,840 2,438
Total liabilities 28,878 30,917 20,655
------ ------ ------
Equity:
Ordinary shares 1 1 1
Additional paid-in
capital 20,806 20,600 21,695
Accumulated other
comprehensive income 33,851 32,589 26,660
Retained earnings 224,388 225,037 222,037
------- ------- -------
Total Actions
Semiconductor Co., Ltd.
shareholders' equity 279,046 278,227 270,393
Non-controlling interest (25) (21) (29)
--- --- ---
Total equity 279,021 278,206 270,364
TOTAL LIABILITIES AND
EQUITY 307,899 309,123 291,019
======= ======= =======
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands of U.S. dollars, except number of shares and per share amounts)
Three months ended Three months ended Three months ended
March 31, December 31, March 31,
2012 2011 2011
---- ---- ----
(unaudited) (unaudited) (unaudited)
Revenues:
Third-parties:
System-on-a chip products 10,503 12,036 7,024
Semiconductor product testing
services 61 58 80
--- --- ---
10,564 12,094 7,104
------ ------ -----
Related-parties:
System-on-a chip products 171 199 2,262
Total revenues 10,735 12,293 9,366
------ ------ -----
Cost of revenues:
Third-parties:
System-on-a chip products (6,836) (7,513) (4,349)
Semiconductor product testing
services (38) (34) (42)
--- --- ---
(6,874) (7,547) (4,391)
------ ------ ------
Related-parties:
System-on-achip products (114) (127) (1,309)
Total cost of revenues (6,988) (7,674) (5,700)
------ ------ ------
Gross profit 3,747 4,619 3,666
Other operating income 72 227 217
Operating expenses:
Research and development (5,782) (5,984) (5,057)
General and administrative (1,776) (2,468) (1,695)
Selling and marketing (249) (307) (265)
Total operating expenses (7,807) (8,759) (7,017)
------ ------ ------
Loss from operations (3,988) (3,913) (3,134)
Other income 539 270 1,111
Dividend income from an other
investment - 457 -
Fair value change in trading
securities 1 1 1
Interest income 3,447 3,494 2,832
Interest expense (61) (52) (19)
(Loss) income before income
taxes, equity in net loss of (62) 257 791
equity method investees and
noncontrolling interest
Income tax expense (536) (33) (258)
Equity in net loss of equity
method investees (55) (337) (531)
Net (loss) income (653) (113) 2
Add: Net loss attributable to
noncontrolling interest 4 1 3
--- ---
Net (loss) income
attributable to Actions
Semiconductor Co.,Ltd.
Shareholders (649) (112) 5
==== ==== ===
Net (loss) income attributable to Actions Semiconductor Co.,Ltd.
Shareholders
Net (loss) income per
share:Basic (0.00157) (0.00027) 0.00001
======== ======== =======
Net (loss) income per
share:Diluted (0.00157) (0.00027) 0.00001
======== ======== =======
Basic (per ADS) (0.00941) (0.00162) 0.00007
======== ======== =======
Diluted (per ADS) (0.00941) (0.00162) 0.00007
======== ======== =======
Weighted-average shares used
in computation:
Basic 413,921,007 415,280,497 423,324,265
=========== =========== ===========
Diluted 413,921,007 415,280,497 440,270,706
=========== =========== ===========
Weighted-average ADS used in
computation :
Basic 68,986,835 69,213,416 70,554,044
========== ========== ==========
Diluted 68,986,835 69,213,416 73,378,451
========== ========== ==========
Note: Stock compensation
recorded in each
expense classification above
is as follows:
Research and development 354 475 447
General and administrative 98 139 123
Selling and marketing 15 19 24
Cost of revenues 6 1 5
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Three months ended Three months ended Three months ended
March 31, December 31, March 31,
2012 2011 2011
---- ---- ----
(unaudited) (unaudited) (unaudited)
Operating activities:
Net (loss) income (653) (113) 2
Adjustments to reconcile net
(loss) income to net cash
provided by
Operating activities:
Depreciation of property,
plant and equipment 592 593 463
Amortization of land use
right 9 9 9
Amortization of acquired
intangible assets 706 594 402
Utilization of subsidy from
local authorities of
Zhuhai, the People's
Republic of China the
("PRC") - - (157)
Write down of inventories 77 - 61
(Gain) loss on disposal of
property, plant and
equipment (18) 25 -
Share of net loss of equity
method investees 55 337 531
Share-based compensation 473 634 599
Fair value change in trading
securities (1) (1) (1)
Deferred taxes 266 14 153
Changes in operating assets
and liabilities:
Accounts receivable 926 (253) 13
Amount due from a related
party (25) 312 (681)
Inventories 461 896 (515)
Amount due from an equity
method investee (50) 17 17
Prepaid expenses and other
current assets 284 1,209 739
Accounts payable 608 (3,135) 1,485
Accrued expenses and other
current liabilities (3,111) 422 (445)
Income tax payable 118 (263) 99
Net cash provided by
operating activities 717 1,297 2,774
Investing activities:
Investment in an equity
method investee - - (2,600)
Purchase of other
investments - - (13,727)
Proceeds from redemption of
marketable securities 19,655 2,237 106,833
Purchase of marketable
securities (19,279) (37,334) (22,249)
Proceeds from disposal of
property, plant and
equipment 22 - -
Purchase of property, plant
and equipment (472) (1,691) (4,317)
Purchase of intangible
assets (75) (1,869) (989)
Decrease in time deposits - - 34
--- --- ---
Net cash (used in) provided
by investing activities (149) (38,657) 62,985
Financing activities:
Raise of short-term bank
loans - - 6,000
Advance subsidy from local
authorities of Zhuhai, the
PRC 32 695 16
Proceeds from exercise of
stock option 759 207 134
Repurchase of ordinary
shares (1,025) (1,186) (3,290)
------ ------ ------
Net cash (used in) provided
by financing activities (234) (284) 2,860
Net increase (decrease) in
cash and cash equivalents 334 (37,644) 68,619
Cash and cash equivalents at
the beginning of the period 33,207 70,653 42,872
Effect of exchange rate
changes on cash 254 198 380
Cash and cash equivalents at
the end of the period 33,795 33,207 111,871
====== ====== =======
- -
SOURCE Actions Semiconductor Co., Ltd.
