ZHUHAI, China, Jan. 28 /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 fourth quarter and year ended December 31, 2007.
All financial results are reported on a U.S. GAAP basis.
Revenue for the fourth quarter of 2007 was $32.3 million, a 20% increase over revenue of $27.0 million for the third quarter of 2007, and a 35% decrease from revenue of $49.5 million for the fourth quarter of 2006. Revenue for the year ended December 31, 2007 was $116.6 million, a 32% decrease from revenue of $170.2 million for the year ended December 31, 2006.
Net income for the fourth quarter of 2007 was $19.4 million, or $0.23 per ADS, compared to $10.3 million, or $0.12 per ADS for the third quarter of 2007, and compared to $21.3 million, or $0.25 per ADS for the fourth quarter of 2006. Included in net income for the fourth quarter of 2007 was a $5.9 million tax refund, 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. Net income for the full year of 2007 was $52.2 million, compared to $74.6 million reported for the full year 2006. Net income per ADS was $0.61 for 2007, compared to the $0.87 per ADS reported for the full year 2006.
Actions Semiconductor reported operating margin of 32.9% and gross margin of 52.9% for the fourth quarter of 2007. For the full year of 2007, operating margin was 30.3%, and gross margin was 51.2%. The Company ended the year with $241.8 million in cash and cash equivalents together with time deposits, restricted cash and short-term marketable securities.
"We were pleased to finish 2007 with solid results for the fourth quarter," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "Excluding the tax refund, both revenue and net income were in line with our expectations for the fourth quarter. Additionally, both operating and gross margins improved sequentially as a result of our cost migration and expense management programs. " "During 2007 we laid the foundation for the next phase of the company's development. We focused on improving our business fundamentals by maintaining our solid financial position, strengthening our engineering team, expanding our product offering, and targeting new markets internationally. With a complete product mix and an enhanced team in place, we believe we are better positioned to continue our long-term growth strategy," 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 March 31, 2008, Actions Semiconductor estimates revenue in the range of $20 to $23 million, and, fully diluted earnings per ADS of $0.06 to $0.08.
Conference Call Details Actions Semiconductor's Fourth Quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Monday, January 28, 2008. To participate in the live call, analysts and investors should dial 800-901-5241 or 617-786-2963 and enter passcode 89508448 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 February 4, 2008, by dialing 888-286-8010 or 617-801-6888 and entering the passcode 62798013.
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
Semiconductor
415-217-4967
+86-756 3392 353 *1015 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
At December At September At December
31, 30, 31,
2007 2007 2006
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents 72,054 101,097 137,778
Time deposits 2,613 14,334 45,713
Restricted cash 1,782 3,070 -
Marketable securities 165,317 96,651 20,531
Accounts receivable, net 6,046 6,772 5,859
Notes receivable 372 974 2,154
Inventories 12,542 11,210 6,280
Prepaid expenses and other current
assets 2,429 3,172 6,413
Amount due from an affiliate 50 67 133
Deferred tax assets 739 642 662
Total current assets 263,944 237,989 225,523 Investment in an affiliate - 1,572 1,469
Other investments 7,760 3,937 -
Rental deposits 79 45 52
Property, plant and equipment, net 7,945 7,907 6,749
Acquired intangible assets, net 5,849 6,162 3,787
Deposit paid for acquisition of
property, plant and equipment 27 54 91
21,660 19,677 12,148
TOTAL ASSETS 285,604 257,666 237,671 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 12,334 7,337 15,715
Accrued expenses and other current
liabilities 9,435 7,305 9,490
Amounts due to shareholders - - 10
Other liabilities 1,433 907 692
Short-term bank loan 1,519 1,479 -
Income tax payable 749 578 2,258 Total current liabilities 25,470 17,606 28,165
Other liabilities 137 - - Minority interest 204 340 486 Shareholders' equity:
Ordinary shares 1 1 1
Additional paid-in capital 43,679 46,533 50,341
Accumulated other comprehensive
income 9,628 6,124 4,396
Retained earnings 206,485 187,062 154,282 Total shareholders' equity 259,793 239,720 209,020 TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 285,604 257,666 237,671 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED INCOME STATEMENT
(In thousands of U.S. dollars, except per share amount) 3 months 3 months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited) Revenues 32,331 49,538 116,628 170,228
Cost of revenues (15,218) (23,818) (56,918) (75,911)
Gross profit 17,113 25,720 59,710 94,317
Other income 12 477 392 1,634
Operating expenses:
Research and
development (3,443) (2,147) (12,381) (9,773)
General and
administrative (2,380) (2,227) (10,485) (8,663)
Selling and
marketing (658) (456) (1,880) (1,626)
Total operating
expenses (6,481) (4,830) (24,746) (20,062)
Income from operations 10,644 21,367 35,356 75,889
Other income 7,172 - 11,570 -
Interest income 1,973 1,496 7,162 4,876
Interest expense (20) - (82) (160)
Income before income
taxes, equity in net
loss of an affiliate
and minority
interests 19,769 22,863 54,006 80,605
Income taxes (497) (1,621) (2,202) (5,984)
Equity in net loss of
an affiliate 76 (16) 179 (156)
Minority interests 75 38 220 96
Net income 19,423 21,264 52,203 74,561 Net income per share:
Basic and diluted per
share: 0.04 0.04 0.10 0.14 Basic and diluted (per
ADS) 0.23 0.25 0.61 0.87 Weighted-average
shares used in
computation:
Basic and diluted 509,793,348 516,000,000 513,588,069 516,000,000 Weighted-average ADS
used in computation:
Basic and diluted 84,965,558 86,000,000 85,598,012 86,000,000 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars) Three months Year Year
ended ended ended
December December December
31, 2007 31, 2007 31, 2006
(unaudited) (unaudited)
Operating activities:
Net income 19,423 52,203 74,561
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization of
property, plant and equipment 427 1,594 991
Amortization of acquired intangible
assets 728 2,349 990
Utilization of advance subsidy from
local authorities of Zhuhai, the People's Republic of China - - (35)
Loss on disposal of property, plant
and equipment 3 320 65
Gain on disposal of intangible
assets - (18) -
Minority interests (136) (282) (96)
Deferred tax (97) (77) (134)
Equity in net loss of an affiliate - (103) 156
Changes in operating assets and
liabilities:
Accounts receivable 726 (187) 2,234
Notes receivable 628 1,828 (420)
Inventories (1,076) (5,632) 911
Prepaid expenses and other
current assets 828 4,203 (4,030)
Income tax recoverable - - 11
Amount due from an affiliate 19 86 (133)
Accounts payable 4,799 (4,023) 2,184
Accrued expenses and other
current liabilities 767 (3,777) (2,698)
Income tax payable 159 (1,557) 2,258
Rental deposits (33) (25) (41)
Net cash provided by operating
activities 27,165 46,902 76,774 Investing activities:
Proceeds from disposal of property,
plant and equipment - 39 79
Proceeds from disposal of
intangible assets - 64 -
Increase in marketable securities (66,166) (141,108) (20,531)
Increase in other investments (2,251) (6,188) -
Investment in an affiliate - - (1,125)
Purchase of property, plant and
equipment (230) (2,586) (5,793)
Purchase of acquired intangible
assets (242) (4,241) (1,910)
(Increase) decrease in restricted
cash 1,371 (1,626) 2,563
Decrease (increase) in time
deposits 12,109 44,423 (21,471) Cash used in investing activity (55,409) (111,223) (48,188) Financing activities:
(Decrease) increase in short-term
bank loans - 1,431 (2,374)
Advance subsidy from others 638 820 447
Repurchase of common stock (2,854) (6,662) -
Amounts due to shareholders - - 77,377
Repayment of amounts due to
shareholders - (10) (77,367) Cash used in financing activities (2,216) (4,421) (1,917) Effect of exchange rate changes on
cash 1,417 3,018 2,213 Net (decrease) increase in cash and
cash equivalents (29,043) (65,724) 28,882 Cash and cash equivalents at the
beginning of the period 101,097 137,778 108,896 Cash and cash equivalents at the end
of the period 72,054 72,054 137,778
DATASOURCE: Actions Semiconductor Co., Ltd.
CONTACT: Lisa Laukkanen, +1-415-217-4967, , of The Blueshirt Group, for Actions Semiconductor Co., Ltd.; or Chung Hsu, +86-756 3392 353 *1015, , Director of Investor Relations, Actions Semiconductor Web site: http://www.actions-semi.com/
|