Press Releases
Actions Semiconductor Reports Third Quarter 2007 Results
PRNewswire-FirstCall
ZHUHAI, China
Oct 30, 2007
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 financial results for the third quarter ended September 30, 2007.
The unaudited financial results are reported on a U.S. GAAP basis.
Revenue for the third quarter of 2007 was $27.0 million, compared to $27.0 million for the second quarter of 2007, and $45.7 million for the third quarter of 2006.
Net income for the third quarter of 2007 was $10.3 million, or $0.12 per ADS, compared to $9.8 million, or $0.11 per ADS for the second quarter of 2007, and compared to $20.5 million, or $0.24 per ADS for the third quarter of 2006.
Actions Semiconductor reported operating margin of 26.0% and gross margin of 51.8% for the third quarter of 2007. The company ended the quarter with $215.2 million cash and cash equivalents together with time deposits, restricted cash and short-term marketable securities.
"During the third quarter, we continued to navigate our business through a highly competitive marketplace," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "While we were disappointed that these challenging market conditions led to results below our original expectations, we were encouraged to see improving margins as a result of our cost savings migration, and we continued to deliver amongst the highest margins in our sector. Demand for our Series 9 products remains strong. We are enthusiastic about the long-term opportunities for our expanded product portfolio which now effectively addresses the full spectrum of the market from the low end to the high end. We remain dedicated to preserving our market leadership position, and we are committed to improving our business fundamentals by maintaining our solid financial position, strengthening our engineering resources, focusing on product innovation, and targeting new markets internationally."
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 quarter ended December 31, 2007, Actions Semiconductor estimates revenue in the range of $32 to $35 million, and, fully diluted earnings per ADS of $0.14 to $0.17.
Conference Call Details
Actions Semiconductor's Third Quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, October 30, 2007. To participate in the live call, analysts and investors should dial 866-770-7120 or 617-213-8065 and enter passcode 49239971 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 6, 2007, by dialing 888-286-8010 or 617-801-6888 and entering the passcode 12323630. 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 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 More Information
Investor Contacts:
Lisa Laukkanen Chung Hsu
The Blueshirt Group Director of Investor Relations, Actions
lisa@blueshirtgroup.com Semiconductor
415-217-4967 chung@actions-semi.com
+86-756 3392 353 *1015
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
At At At
September 30, June 30, December 31,
2007 2007 2006
(unaudited)(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 101,097 109,387 137,778
Time deposits 14,334 39,803 45,713
Restricted cash 3,070 3,022 -
Marketable securities 96,651 55,366 20,531
Accounts receivable 6,772 6,381 5,859
Notes receivable 974 516 2,154
Inventories 11,210 12,816 6,280
Prepaid expenses and
other current assets 3,172 4,447 6,413
Amount due from an affiliate 67 75 133
Deferred tax assets 642 518 662
Total current assets 237,989 232,331 225,523
Investment in an affiliate 1,572 1,505 1,469
Other investments 3,937 3,937 -
Rental deposits 45 44 52
Property, plant and equipment, net 7,907 7,227 6,749
Acquired intangible assets, net 6,162 4,541 3,787
Deposit paid for acquisition of
property, plant and equipment 54 13 91
19,677 17,267 12,148
TOTAL ASSETS 257,666 249,598 237,671
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 7,337 9,777 15,715
Accrued expenses and other current
liabilities 7,305 4,898 9,490
Amounts due to shareholders - - 10
Other liabilities 907 893 692
Short-term bank loan 1,479 1,570 -
Income tax payable 578 586 2,258
Total current liabilities 17,606 17,724 28,165
Minority interest 340 394 486
Shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 46,533 49,337 50,341
Accumulated other comprehensive
income 6,124 5,366 4,396
Retained earnings 187,062 176,776 154,282
Total shareholders' equity 239,720 231,480 209,020
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 257,666 249,598 237,671
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED INCOME STATEMENT
(In thousands of U.S. dollars, except per share amount)
3 months 3 months 9 months 9 months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues 27,043 45,667 84,297 120,825
Cost of revenues (13,024) (19,757) (41,700) (51,955)
Gross profit 14,019 25,910 42,597 68,870
Other income 8 262 380 1,157
Operating
expenses:
Research and
development (3,681) (2,790) (8,938) (7,396)
General and
administrative (2,837) (2,263) (8,105) (6,769)
Selling and
marketing (470) (467) (1,222) (1,114)
Total operating
expenses (6,988) (5,520) (18,265) (15,279)
Income from
operations 7,039 20,652 24,712 54,748
Other income 1,757 - 4,398 -
Interest
income 1,695 1,310 5,189 3,380
Interest
expense (20) (14) (62) (160)
Income before
income taxes,
equity in net
loss of an
affiliate
and minority
interests 10,471 21,948 34,237 57,968
Income taxes (305) (1,493) (1,705) (4,399)
Equity in net
loss of an
affiliate 67 (2) 103 (140)
Minority interests 53 32 145 58
Net income 10,286 20,485 32,780 53,487
Net income
per share:
Basic and
diluted
per share: 0.02 0.04 0.06 0.10
Basic and diluted
(per ADS) 0.12 0.24 0.38 0.62
Weighted-average
shares used in
computation:
Basic and
diluted 512,972,522 516,000,000 514,866,876 516,000,000
Weighted-average
ADS used in
computation :
Basic and diluted 85,495,420 86,000,000 85,811,146 86,000,000
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
Three months Nine months Nine months
ended ended ended
Sept. 30, Sept. 30, Sept. 30,
2007 2007 2006
(unaudited) (unaudited) (unaudited)
Operating activities:
Net income 10,286 32,780 53,487
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
property, plant and equipment 441 1,167 670
Amortization of acquired intangible
assets 619 1,621 604
Utilization of advance subsidy from
local authorities of Zhuhai,
the People's Republic of China - - (35)
Loss on disposal of property, plant
and equipment 2 317 (3)
Gain on disposal of intangible
assets - (18) -
Minority interests (54) (146) (58)
Deferred tax (124) 20 528
Equity in net loss of an affiliate (67) (103) 140
Changes in operating assets and
liabilities:
Accounts receivable (391) (913) 2,886
Notes receivable (450) 1,200 1,236
Inventories 1,793 (4,556) (2,099)
Prepaid expenses and other
current assets 1,344 3,375 (1,943)
Income tax recoverable - - 11
Amount due from an affiliate 9 67 -
Accounts payable (2,591) (8,822) 2,748
Accrued expenses and other
current liabilities 740 (4,544) (2,926)
Income tax payable (15) (1,716) 1,486
Rental deposits - 8 (40)
Net cash provided by operating
activities 11,542 19,737 56,692
Investing activities:
Proceeds from disposal of property,
plant and equipment 8 39 47
Proceeds from disposal of
intangible assets - 64 -
Increase in marketable securities (40,407) (74,942) -
Increase in other investments - (3,937) -
Investment in an affiliate - - (1,125)
Purchase of property, plant and
equipment (1,057) (2,356) (5,502)
Purchase of acquired intangible
assets (2,160) (3,999) (902)
(Increase) decrease in restricted
cash - (2,997) 2,512
Decrease (increase) in time
deposits 26,101 32,314 (48,618)
Cash used in investing activity (17,515) (55,814) (53,588)
Financing activities:
(Decrease) increase in short-term
bank loans (116) 1,431 (2,220)
Advance subsidy from others - 182 249
Repurchase of common stock (2,804) (3,808) -
(Decrease) increase in amounts due
to shareholders - (10) 77,377
Cash (used in) provided by financing
activities (2,920) (2,205) 75,406
Effect of exchange rate changes on
cash 603 1,601 1,119
Net (decrease) increase in cash and
cash equivalents (8,290) (36,681) 79,629
Cash and cash equivalents at the
beginning of the period 109,387 137,778 108,896
Cash and cash equivalents at the end
of the period 101,097 101,097 188,525
First Call Analyst:
SOURCE: Actions Semiconductor Co., Ltd.
CONTACT: Lisa Laukkanen of The Blueshirt Group, +1-415-217-4967,
lisa@blueshirtgroup.com, for Actions Semiconductor Co., Ltd.; or Chung Hsu
Director of Investor Relations of Actions Semiconductor Investor Relations,
+86-756 3392 353 *1015, chung@actions-semi.com
Web site: http://www.actions-semi.com/
