ZHUHAI, China, April 28 /PRNewswire-FirstCall/ -- 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, 2008.
All financial results are reported on a U.S. GAAP basis.
Revenue for the first quarter of 2008 was $25.2 million, as compared to revenue of $32.3 million for the fourth quarter of 2007, and $30.3 million for the first quarter of 2007.
Net income for the first quarter of 2008 was $10.8 million, or $0.13 per ADS, compared to $19.4 million, or $0.23 per ADS for the fourth quarter of 2007, and compared to $12.7 million, or $0.15 per ADS for the first quarter of 2007. Included in net income for the fourth quarter of 2007 was a $5.9 million reinvestment incentive, or $0.07 per ADS, resulting from a tax refund relating to a program Zhuhai Municipal Tax Bureau formed to encourage local business development of Foreign Invested Enterprises.
Actions Semiconductor reported operating margin of 30.5% and gross margin of 53.1% for the first quarter of 2008. The Company ended the quarter with $122.8 million in cash and cash equivalents together with time deposits. Marketable securities at the end of the quarter was $129.2 million.
"Our first quarter results exceeded our expectations on both a revenue and earnings basis," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "Our strong results were driven by maintaining higher than anticipated ASPs (Average Selling Price) during the quarter, combined with a favorable product mix and continued aggressive cost controls.
"During the first quarter, we made progress on a number of our long-term growth objectives. We continued to develop our international and brand name presence and recently entered into an agreement for a series of collaborative projects with Digital Blue, Disney's consumer electronics design house. Overall demand was steady during the quarter, and we continued to ramp products that support advanced applications. With our expanded product portfolio and best-in-class team of engineers, we believe we have strengthened our competitive position and are encouraged by the longer-term growth opportunities in new and existing markets," concluded Mr. Yeh.
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 June 30, 2008, Actions Semiconductor estimates revenue in the range of $22 to $25 million, and, fully diluted earnings per ADS of $0.08 to $0.10.
Conference Call Details Actions Semiconductor's First Quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Monday, April 28, 2008. To participate in the live call, analysts and investors should dial 800-510-9661 or 617-614-3452 and enter passcode 28207325 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 May 5, 2008, by dialing 888-286-8010 or 617-801-6888 and entering the passcode 40792268.
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.
ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars) At March 31, At December 31, At March 31,
2008 2007 2007
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 121,068 72,054 108,836
Time deposits 1,692 2,613 50,672
Restricted cash - 1,782 1,683
Marketable securities 129,243 165,317 50,667
Accounts receivable, net 5,634 6,046 5,841
Notes receivable - 372 870
Inventories 9,873 12,542 11,389
Prepaid expenses and other current
assets 2,435 2,479 4,072
Amount due from an affiliate - - 163
Deferred tax assets 573 739 410
Total current assets 270,518 263,944 234,603 Investment in an affiliate - - 1,449
Other investments 7,908 7,760 -
Rental deposits 62 79 40
Property, plant and equipment, net 6,737 6,436 5,551
Land use right 1,562 1,509 1,448
Acquired intangible assets, net 5,543 5,849 4,335
Deposit paid for acquisition of
property, plant and equipment - 27 120 TOTAL ASSETS 292,330 285,604 247,546 LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable 6,927 12,334 15,937
Accrued expenses and other current
liabilities 4,438 9,435 3,953
Amounts due to shareholders - - 10
Other liabilities 706 884 751
Loan from minority shareholder 1,500 - -
Short-term bank loan - 1,519 1,547
Income tax payable 962 749 3,102
Deferred tax liabilities 84 - -
Total current liabilities 14,617 24,921 25,300 Other liabilities 642 686 -
Deferred tax liabilities 554 - - Total liabilities 15,813 25,607 25,300 Minority interest 132 204 441 Shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 43,158 43,679 50,341
Accumulated other comprehensive
income 15,919 9,628 4,466
Retained earnings 217,307 206,485 166,997 Total shareholders' equity 276,385 259,793 221,805 TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 292,330 285,604 247,546 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED INCOME STATEMENT
(in thousands of U.S. dollars, except per share amounts) Three months Three months Three months
ended ended ended
March 31, December 31, March 31,
2008 2007 2007
(unaudited) (unaudited) (unaudited) Revenues 25,193 32,331 30,291
Cost of revenues (11,820) (15,218) (14,338)
Gross profit 13,373 17,113 15,953
Other operating income 332 12 519
Operating expenses:
Research and development (3,754) (3,443) (2,707)
General and administrative (1,848) (2,380) (2,270)
Selling and marketing (408) (658) (375)
Total operating expenses (6,010) (6,481) (5,352)
Income from operations 7,695 10,644 11,120
Other income 1,527 7,172 1,252
Interest income 2,523 1,973 1,411
Interest expense (4) (20) (23)
Income before income taxes, equity
in net income(loss) of an
affiliate and minority interests 11,741 19,769 13,760
Income tax (991) (497) (1,070)
Equity in net income(loss) of an
affiliate - 76 (20)
Minority interests 72 75 45
Net income 10,822 19,423 12,715 Net income per share:
Basic and diluted per share: 0.02 0.04 0.02 Basic and diluted (per ADS) 0.13 0.23 0.15 Weighted-average shares used in
computation:
Basic and diluted 507,720,797 509,793,348 516,000,000 Weighted-average ADS used in
computation :
Basic and diluted 84,620,133 84,965,558 86,000,000 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars) Three months Three months Three months
ended ended ended
March 31, December 31, March 31,
2008 2007 2007
(unaudited) (unaudited) (unaudited)
Operating activities:
Net income 10,822 19,423 12,715
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
property, plant and equipment 475 427 348
Amortization of acquired intangible
assets 804 728 473
Loss(gain) on disposal of property,
plant and equipment - 3 (23)
Gain on disposal of intangible
assets - - (18)
Minority interests (72) (136) (45)
Deferred taxes 804 (97) 252
Equity in net loss of an affiliate - - 20
Fair value change in marketable
securities - - (247)
Changes in operating assets and
liabilities:
Accounts receivable 412 726 18
Notes receivable 387 628 1,291
Inventories 3,142 (1,076) (5,065)
Prepaid expenses and other
current assets 83 828 2,351
Amount due from an affiliate 52 19 (30)
Accounts payable (5,899) 4,799 38
Accrued expenses and other
current liabilities (6,598) 767 (6,102)
Income tax payable 189 159 820
Rental deposits 20 (33) 12 Net cash provided by operating
activities 4,621 27,165 6,808 Investing activities:
Increase in other investment (80) (2,251) -
Proceeds from disposal of property,
plant and equipment - - 31
Proceeds from disposal of
intangible assets - - 64
Decrease(increase) in marketable
securities 42,980 (66,166) (29,774)
Purchase of property, plant and
equipment (482) (230) (564)
Purchase of intangible assets (295) (242) (1,239)
Decrease(increase) in restricted
cash 1,854 1,371 (1,683)
Decrease(increase) in time deposits 1,024 12,109 (4,780) Cash Provided by investing activities 45,001 (55,409) (37,945) Financing activities:
Proceeds from short-term bank loans - - 1,547
Repayment of short-term bank loans (1,580) - -
Proceeds from loan from minority
shareholders 1,500 - -
Advance subsidy from local
authorities of Zhuhai, the PRC (285) 638 51
Repurchase of ordinary shares (521) (2,854) - Cash (used in) provided by financing
activities (886) (2,216) 1,598 Effect of exchange rate changes on
cash 278 1,417 597 Net increase(decrease) in cash and
cash equivalents 49,014 (29,043) (28,942) Cash and cash equivalents at the
beginning of the period 72,054 101,097 137,778 Cash and cash equivalents at the end
of the period 121,068 72,054 108,836 For More Information Investor Contacts:
Lisa Laukkanen Ernie Huang
The Blueshirt Group Investor Relations at Actions Semiconductor
415-217-4967 +86 756 3392353 ext 1095
DATASOURCE: Actions Semiconductor Co., Ltd.
CONTACT: Lisa Laukkanen of The Blueshirt Group, +1-415-217-4967, , for Actions Semiconductor Co., Ltd. Investor Relations; or Ernie Huang of Actions Semiconductor Co., Ltd. Investor Relations, +86 756 3392353, ext 1095, Web site: http://www.actions-semi.com/
|