Press Releases
Actions Semiconductor Reports Second Quarter 2007 Results
PRNewswire
Jul 19, 2007
Company Reports Q2 Revenues of $27 Million
ZHUHAI, China, July 19 /Xinhua-PRNewswire/ -- 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 second quarter ended June 30, 2007.
All financial results are reported on U.S. GAAP basis.
Revenue for the second quarter of 2007 was $27.0 million, compared to $39.3 million for the second quarter of 2006, and $30.3 million for the first quarter of 2007.
Net income for the second quarter of 2007 was $9.8 million, or $0.11 per ADS, compared to $18.1 million, or $0.21 per ADS for the second quarter of 2006, as compared to $12.7 million, or $0.15 per ADS for the first quarter of 2007.
Actions Semiconductor reported operating margins of 25.6% and gross margins of 46.8% for the second quarter of 2007. The Company ended the quarter with $207.6 million cash and cash equivalents together with time deposits, restricted cash and short-term marketable securities.
"While we maintained our market leadership and grew unit shipment volumes both on a sequential and annual basis, our second quarter results were impacted by increased pricing pressure and customers experiencing challenges in securing small panel display supplies," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "We are enthusiastic about expanding our market opportunities through our high-end Series 13 products, which will commence volume shipments during the third quarter as planned. By offering a full range of portable media player("PMP") products to the U.S. market at a superior cost-performance ratio we should continue to expand our market share and attract new customers in the U.S. and globally. We remain confident in our compelling business model and commitment to executing our long-term growth strategy as we continue our market dominance as a leading global PMP SoC supplier."
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 September 30, 2007, Actions Semiconductor estimates revenue in the range of $30 to $32 million, and, fully diluted earnings per ADS of $0.14 to $0.16.
Conference Call Details
The Actions Semiconductor Second Quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, July 19, 2007. To participate in the live call, analysts and investors should dial 800-573-4752 or 617-224-4324 and enter passcode 68327180 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 July 26, 2007, by dialing 888-286-8010 or 617-801-6888 and entering the passcode 10015162.
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
The Blueshirt Group
lisa@blueshirtgroup.com
415-217-4967
Chung Hsu
Director of Investor Relations, Actions Semiconductor
chung@actions-semi.com
+86-756 3392 353 *1015
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
At June 30, At March 31, At Dec. 31,
2007 2007 2006
(unaudited) (unaudited) ASSETS
Current assets:
Cash and cash equivalents 109,387 108,836 137,778
Time deposits 39,803 50,672 45,713
Restricted cash 3,022 1,683 --
Marketable securities 55,366 50,667 20,531
Accounts receivable 6,381 5,841 5,859
Notes receivable 516 870 2,154
Inventories 12,816 11,389 6,280
Prepaid expenses and other current
assets 4,447 4,072 6,413
Amount due from an affiliate 75 163 133
Deferred tax assets 518 410 662
Total current assets 232,331 234,603 225,523
Investment in an affiliate 1,505 1,449 1,469
Other Investments 3,937 -- --
Rental deposits 44 40 52
Property, plant and equipment, net 7,227 6,999 6,749
Acquired intangible assets, net 4,541 4,335 3,787
Deposit paid for acquisition of
property, plant and equipment 13 120 91
17,267 12,943 12,148
TOTAL ASSETS 249,598 247,546 237,671
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 9,777 15,937 15,715
Accrued expenses and other current
liabilities 4,898 3,953 9,490
Amounts due to shareholders -- 10 10
Other liabilities 893 751 692
Short-term bank loan 1,570 1,547 --
Income tax payable 586 3,102 2,258
Total current liabilities 17,724 25,300 28,165
Minority interest 394 441 486
Shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 49,337 50,341 50,341
Accumulated other comprehensive
income 5,366 4,466 4,396
Retained earnings 176,776 166,997 154,282
Total shareholders' equity 231,480 221,805 209,020
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 249,598 247,546 237,671
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED INCOME STATEMENT
(In thousands of U.S. dollars, except per share amounts)
3 months 3 months 6 months 6 months
ended ended ended ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues 26,963 39,326 57,254 75,158
Cost of revenues (14,338) (15,989) (28,676) (32,198)
Gross profit 12,625 23,337 28,578 42,960
Other income 100 723 372 895
Operating expenses:
Research and
development (2,550) (2,526) (5,257) (4,606)
General and
administrative (2,901) (2,395) (5,268) (4,506)
Selling and
marketing (377) (329) (752) (647)
Total operating
expenses (5,828) (5,250) 11,277 (9,759)
Income from operations 6,897 18,810 17,673 34,096
Other income 1,292 -- 2,641 --
Interest income 1,836 1,096 3,494 2,070
Interest expense (19) (77) (42) (146)
Income before income
taxes, equity in net
loss of an affiliate
and minority
interests 10,006 19,829 23,766 36,020
Income taxes (330) (1,621) (1,400) (2,906)
Equity in net loss of
an affiliate 56 (138) 36 (138)
Minority interests 47 17 92 26
Net income 9,779 18,087 22,494 33,002
Net income per share:
Basic and diluted per
share: 0.02 0.04 0.04 0.06
Basic and diluted
(per ADS) 0.11 0.21 0.26 0.38
Weighted-average
shares used in
computation:
Basic and diluted 515,661,372 516,000,000 515,844,756 516,000,000
Weighted-average ADS
used in computation :
Basic and diluted 85,943,562 86,000,000 85,974,126 86,000,000
ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
Three months Six months Six months
ended ended ended
June 30, June 30, June 30,
2007 2007 2006
(unaudited) (unaudited) (unaudited)
Operating activities:
Net income 9,779 22,494 33,002
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
property, plant and equipment 378 726 363
Amortization of acquired intangible
assets 529 1,002 380
Utilization of advance subsidy from
local authorities of Zhuhai,
the People's Republic of China -- -- (35)
Loss on disposal of property, plant
and equipment 338 315 (16)
Gain on disposal of intangible
assets -- (18) --
Minority interests (47) (92) (26)
Deferred tax (108) 144 527
Equity in net loss of an affiliate (56) (36) 138
Changes in operating assets and
liabilities:
Accounts receivable (540) (522) 2,988
Notes receivable 359 1,650 (63)
Inventories (1,284) (6,349) (2,049)
Prepaid expenses and other
current assets (320) 2,031 (1,389)
Income tax recoverable -- -- 11
Amount due from an affiliate 88 58 --
Accounts payable (6,269) (6,231) 2,344
Accrued expenses and other
current liabilities 818 (5,284) (4,279)
Income tax payable (2,521) (1,701) 1,718
Rental deposits (4) 8 (40)
Net cash provided by operating
activities 1,140 8,195 33,574
Investing activities:
Proceeds from disposal of property,
plant and equipment -- 31 47
Proceeds from disposal of
intangible assets -- 64 --
Increase in marketable securities (4,514) (34,535) --
Increase in other investments (3,937) (3,937) --
Investment in an affiliate -- -- (1,125)
Purchase of property, plant and
equipment (735) (1,299) (4,962)
Purchase of acquired intangible
assets (600) (1,839) (528)
Increase in restricted cash (1,314) (2,997) (2,812)
Decrease (Increase) in time
deposits 10,993 6,213 (43,609)
Cash used in investing activity (107) (38,299) (52,989)
Financing activities:
Proceeds from short-term bank loans -- 1,547 2,917
Advance subsidy from others 131 182 249
Treasury stock (1,004) (1,004) --
Decrease in amounts due to
shareholders (10) (10) --
Cash provided by financing activities (883) 715 3,166
Effect of exchange rate changes on
cash 401 998 570
Net increase in cash and cash
equivalents 551 (28,391) (15,679)
Cash and cash equivalents at the
beginning of the period 108,836 137,778 108,896
Cash and cash equivalents at the end
of the period 109,387 109,387 93,217
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 Co., Ltd.,
+86-756 3392 353 *1015, chung@actions-semi.com
Web site: http://www.actions-semi.com/
