Actions Semiconductor Reports First Quarter 2007 Results
May 10, 2007
Company Reports Q1 Revenues of $30.3 Million, Product Mix Adjusted to Cover
Broader Range of PMP SoC Market
ZHUHAI, China, May 10 /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 first quarter ended March 31, 2007.
All financial results are reported on U.S. GAAP basis.
Revenue for the first quarter of 2007 was $30.3 million, compared to $35.8 million for the first quarter of 2006, and $49.5 million for the fourth quarter of 2006.
Net income for the first quarter of 2007 was $12.7 million, or $0.15 per ADS, compared to $14.9 million, or $0.17 per ADS for the first quarter of 2006, and compared to $21.3 million, or $0.25 per ADS for the fourth quarter of 2006.
Actions Semiconductor reported operating margins of 36.7% and gross margins of 52.7% for the first quarter of 2007. The Company ended the quarter with $108.8 million in cash and cash equivalents, $50.7 million in time deposits, which have original maturities of more than three months but less than one year, and $50.7 million short-term marketable securities.
"Our first quarter revenue and earnings were in line with our revised expectations. Although our top line revenue growth was not as strong as our original expectations, we are pleased to report that we continued to gain market share during the quarter," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "Actions' results were impacted by a number of external factors during the quarter, which included worse than expected ASP erosion, volatility of NAND flash prices, pronounced effects of the late Chinese New Year holiday, and a shortage of TFT display modules. Despite these challenges, Actions has maintained its position as a leading PMP SoC supplier."
"In order to maintain our dominant position in the PMP SoC market, we have begun to adjust our target product mix to cover a broader range of the market with an increased focus on products targeted at the lowest end of the volume market as well as our Series 13 products, targeted at the high end of the market. We intend to maintain our gross margins through the cost-saving transition of the majority of our products to 0.16 micron process technology. Our Series 13 product family has achieved substantial design wins from our customers, and we recently taped out a new Series 13 Plus chip. We remain on schedule to begin volume shipments of our Series 13 products in 3Q07. We anticipate the adjustment of our product mix will be completed by the end of 2Q07," concluded Mr. Yeh.
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 June 30, 2007, Actions Semiconductor estimates revenue in the range of $30.5 to $32.5 million, and, fully diluted earnings per ADS of $0.13 to $0.15.
Conference Call Details
The Actions Semiconductor First Quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, May 10, 2007. To participate in the live call, analysts and investors should dial (800) 706- 7748 or (617) 614-3473 and enter passcode 32512237 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 through May 17, 2007, by dialing (888) 286-8010 and entering the passcode: 42789823. Callers outside the U.S. and Canada may access the replay by dialing (617) 801-6888 and entering the passcode: 42789823.
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 Registration Statement on Form F-1 related to our initial public offering and secondary offering. 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: Suzanne Craig or Lisa Laukkanen Calvin Lau The Blueshirt Group Director of Investor firstname.lastname@example.org Relations email@example.com Actions Semiconductor 415-217-4962 or 415-217-4967 +86-756 3392 353 *1018 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED BALANCE SHEET (In thousands of U.S. dollars) At March 31, At December 31, 2007 2006 (unaudited) ASSETS Current assets: Cash and cash equivalents 108,836 137,778 Time deposits 50,672 45,713 Restricted cash 1,683 - Marketable securities 50,667 20,531 Accounts receivable 5,841 5,859 Notes receivable 870 2,154 Inventories 11,389 6,280 Prepaid expenses and other current assets 4,072 6,413 Amount due from an affiliate 163 133 Deferred tax assets 410 662 Total current assets 234,603 225,523 Investment in an affiliate 1,449 1,469 Rental deposits 40 52 Property, plant and equipment, net 6,999 6,749 Acquired intangible assets, net 4,335 3,787 Deposit paid for acquisition of property, plant and equipment 120 91 12,943 12,148 TOTAL ASSETS 247,546 237,671 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Accounts payable 15,937 15,715 Accrued expenses and other current liabilities 3,953 9,490 Amounts due to shareholders 10 10 Other liabilities 751 692 Short-term bank loan 1,547 - Income tax payable 3,102 2,258 Total current liabilities 25,300 28,165 Minority interest 441 486 Shareholders' equity: Ordinary shares 1 1 Additional paid-in capital 50,341 50,341 Accumulated other comprehensive income 4,466 4,396 Retained earnings 166,997 154,282 Total shareholders' equity 221,805 209,020 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 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 3 months ended Mar 31, ended Dec 31, ended Mar 31, 2007 2006 2006 (unaudited) (unaudited) (unaudited) Revenues 30,291 49,538 35,832 Cost of revenues (14,338) (23,818) (16,209) Gross profit 15,953 25,720 19,623 Other income 519 477 172 Operating expenses: - Research and development (2,707) (2,147) (2,080) Selling and marketing (375) (456) (318) General and administrative (2,270) (2,227) (2,111) Total operating expenses (5,352) (4,830) (4,509) Income from operations 11,120 21,367 15,286 Other income 1,252 - - Interest income 1,411 1,496 975 Interest expense (23) - (70) Income before income taxes, equity in net loss of an affiliate and minority interests 13,760 22,863 16,191 Income taxes (1,070) (1,621) (1,285) Equity in net loss of an affiliate (20) (16) - Minority interests 45 38 9 Net income 12,715 21,264 14,915 Net income per share: Basic and diluted per share: 0.02 0.04 0.03 Basic and diluted (per ADS) 0.15 0.25 0.17 Weighted-average shares used in computation: Basic and diluted 516,000,000 516,000,000 516,000,000 Weighted-average ADS used in computation : Basic and diluted 86,000,000 86,000,000 86,000,000 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) Three months ended March 31,2007 (unaudited) Operating activities: Net income 12,715 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, plant and equipment 348 Amortization of acquired intangible assets 473 Gain on disposal of property, plant and equipment (23) Gain on disposal of intangible assets (18) Minority interests (45) Deferred tax 252 Equity in net loss of an affiliate 20 Fair value change in marketable securities (247) Changes in operating assets and liabilities: Accounts receivable 18 Notes receivable 1,291 Inventories (5,065) Prepaid expenses and other current assets 2,351 Amount due from an affiliate (30) Accounts payable 38 Accrued expenses and other current liabilities (6,102) Income tax payable 820 Rental deposits 12 Net cash provided by operating activities 6,808 Investing activities: Proceeds from disposal of property, plant and equipment 31 Proceeds from disposal of intangible assets 64 Increase in marketable securities (29,774) Purchase of property, plant and equipment (564) Purchase of intangible assets (1,239) Increase in restricted cash (1,683) Increase in time deposits (4,780) Cash used in investing activities (37,945) Financing activities: Proceeds from short-term bank loans 1,547 Advance subsidy from others 51 Cash provided by financing activities 1,598 Effect of exchange rate changes on cash 597 Net decrease in cash and cash equivalents (28,942) Cash and cash equivalents at the beginning of the period 137,778 Cash and cash equivalents at the end of the period 108,836
SOURCE: Actions Semiconductor Co., Ltd.
CONTACT: Investors, Suzanne Craig, +1-415-217-4962, or
firstname.lastname@example.org, or Lisa Laukkanen, +1-415-217-4967, or
email@example.com, both of The Blueshirt Group; or Calvin Lau, Director
of Investor Relations of Actions Semiconductor, +86-756 3392 353 *1018
Web site: http://www.actions-semi.com/