SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 6-K
______________________

 

Report of Foreign Private Issuer

______________________

 

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

  

For the month of February 2015

 

Commission File No. 000-51604

______________________

 

ACTIONS SEMICONDUCTOR CO., LTD.
______________________  

 

No. 1, Ke Ji Si Road

Technology Innovation Coast of Hi-Tech Zone, Zhuhai

Guangdong, 519085

The People’s Republic of China

(86-756) 339-2353
______________________

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F X Form 40-F ___

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ___ No X

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______________________.
Actions Semiconductor Co., Ltd. (the “Registrant”) is furnishing under cover of Form 6-K:

 

Press announcement dated February 3, 2015 relating to the Registrant’s financial results for the three months ended December 31, 2014

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

ACTIONS SEMICONDUCTOR

CO., LTD.

 

By: /S/ Nigel Liu                     

Name: Nigel Liu

Title: Chief Financial Officer

 

Dated: February 4, 2015

 

 
 

 

EXHIBIT INDEX

 

Exhibit Description
Exhibit 99.1 Press announcement dated February 3, 2015 relating to the Registrant’s financial results for the three months ended December 31, 2014.

 

 



 

Exhibit 99.1

 

 

 

Actions Semiconductor Reports Fourth Quarter and Full Year 2014 Results

  

ZHUHAI, China, February 3, 2015 -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS) (“Actions Semiconductor” or “the Company”), one of China's leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (SoC) solutions for portable consumer electronics, today reported its financial results for the fourth quarter and year ended December 31, 2014.

 

All financial results are reported on a U.S. GAAP basis.

 

Revenue for the fourth quarter of 2014 was $13.9 million, as compared to revenue of $13.1 million for the third quarter of 2014, and $17.6 million for the fourth quarter of 2013.

 

Revenue for the year ended December 31, 2014 was $50.3 million, compared to $69.4 million for the year ended December 31, 2013.

 

Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2014 was $12.2 million or $0.206 per basic and diluted American Depositary Share ("ADS"). This compares to net loss attributable to Actions Semiconductor's shareholders of $9.2 million or $0.137 per basic and diluted ADS, for the third quarter of 2014, and net loss attributable to Actions Semiconductor’s shareholders of $0.8 million or $0.012 per basic and diluted ADS, for the fourth quarter of 2013.

 

Net loss attributable to Actions Semiconductor's shareholders for the year ended December 31, 2014 was $30.4 million or $0.461 per basic and diluted ADS.  This compares to a net income attributable to Actions Semiconductor's shareholders of $0.1 million or $0.002 per basic and diluted ADS, for the year ended December 31, 2013. 

 

Actions Semiconductor reported gross margin of negative 19.2% for the fourth quarter of 2014, compared to gross margin of 14.6% for the third quarter of 2014, and 22.2% for the fourth quarter of 2013. Gross margin was impacted by fierce competition in the tablet market and a significant inventory write-down that reduced margin by nearly 30%. The Company ended the fourth quarter with $168.2 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities.

 

Since the share repurchase program commenced in 2007, the Company has invested approximately $79.4 million in repurchasing its ADSs and ordinary shares, including $25.0 million representing the equivalent of 10.0 million ADSs repurchased through a Dutch auction tender offer in September 2014. As of December 31, 2014, the equivalent of approximately 33.9 million ADSs were repurchased.

 

“In the fourth quarter of 2014, revenue came in toward the low end of our expectations, primarily due to the lingering effects of a supply shortage of wafers for multimedia products from our foundry, along with relatively flat demand and persistent, intense competition in the worldwide tablet market. Negative gross margin, along with a non-cash impairment charge of intangibles related to the reorganization of our corporate structure contributed to the loss for the quarter,” stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.

 

“As our financial performance demonstrates, 2014 was a challenging year for Actions. Despite these challenges, we were steadfast in our commitment to invest in our future and expect to generate strong results in the year ahead. We are optimistic the recent launches of two new chipsets based on 28 nm process technology, including our ultra-high performance 64-bit, quad-core solution, the ATM9009, will allow us to compete more effectively in the application processor market including the tablet market, the OTT set-top box market and other cloud connected device market. These value-added application processor markets will move Actions beyond tablets into new and profitable growth markets. In our multimedia business, Bluetooth will be the driving force in 2015 and beyond. We expect our newly launched single-chip Bluetooth 4.0 solution for boomboxes, speakers, headphones and related products will establish Actions as a significant player in the rapidly growing Bluetooth voice and music market.”

 

 
 

 

“Supported by these recent product launches, we are targeting revenue growth of 20% to 25% and a good margin improvement in 2015. We will also focus on cost control, with the goal of reducing operating expenses from 2014 levels,” Dr. Zhou concluded.

 

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.

 

Based on current market trends, the Company expects revenue in the first quarter of 2015 to be in the range of $9.5 to $11.5 million. The Company’s newly launched products are not expected to contribute to first quarter results, as sales volumes will begin to ramp in the second quarter of 2015. In addition, the first quarter of the year is traditionally the seasonally slowest quarter due to the Chinese New Year holiday, which causes a slowdown in production by consumer electronics manufacturers in China for approximately three to four weeks.

 

Conference Call Details

 

Actions Semiconductor's fourth quarter of fiscal year 2014 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Tuesday, February 3, 2015. To participate in the live call, analysts and investors should dial 1-888-299-7209 (within U.S.) or 1-719-325-2464 (outside U.S.) at least ten minutes prior to the call. The conference ID number is 9195995. 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 investors through February 13, 2015 by dialing 1-888-203-1112 (within U.S.) or 1-719-457-0820 (outside U.S.) and entering access code 9195995.

 

About Actions Semiconductor

 

Actions Semiconductor is one of China's leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (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. 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 Shanghai, Shenzhen, Hong Kong and Taipei. 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. Such forward-looking statements include statements concerning the outlook for its new products enabled by 28nm process technology and 64-bit CPU for tablets and high-end OTT set-top boxes and new single chip SoC for Bluetooth boomboxes, customer acceptance of the Actions Semiconductor’s new products and corresponding increases in market share, Actions Semiconductor's belief that it is positioned to capture some upside from its new products and Actions Semiconductor's future expectations with respect to revenue. Actions Semiconductor uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are estimates reflecting current assumptions, expectations and projections about future events and involve significant risks, both known and unknown, uncertainties and other factors that may cause Actions Semiconductor's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, 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. Other unknown or unpredictable factors also could have material adverse effects on Actions Semiconductor's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as required by law, Actions Semiconductor undertakes no obligation and does not intend to update or revise any forward-looking statement to reflect subsequent events or changed assumptions or circumstances.

 

 
 

 

Investor Contacts:  
Elaine Ketchmere, CFA Ally Xie, CA, CPA
Compass Investor Relations Actions Semiconductor
eketchmere@compass-ir.com investor.relations@actions-semi.com
+1-310-528-3031 +86-756-3392353*1018

 

 
 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands of U.S. dollars)

 

   At December 31,   At September 30,   At December 31, 
   2014   2014   2013 
   (unaudited)   (unaudited)   (audited) 
ASSETS               
Current assets:               
Cash and cash equivalents   78,177    78,520    53,263 
Time deposit   5    161    347 
Restricted deposits   51,590    38,985    27,161 
Marketable securities   38,384    43,520    126,607 
Trading securities   70    74    74 
Accounts receivable, net of allowance for doubtful accounts of $558, $379 and $nil as of December 31, 2014, September 30, 2014 and December 31, 2013, respectively   2,832    4,520    5,782 
Amount due from a related party   1,650    1,032    1,301 
Notes receivable   161    -    - 
Amount due from an equity method investee   41    46    38 
Inventories, net of inventory written-down of $7,718, $3,747 and $1,558 as of December 31, 2014, September 30, 2014 and December 31, 2013, respectively   13,970    22,806    20,278 
Prepaid expenses and other current assets   4,511    3,563    3,972 
Income tax recoverable   186    154    67 
Deferred tax assets   1,179    848    416 
Total current assets   192,756    194,229    239,306 
                
Investments in equity method investees   27,352    27,061    17,843 
Other investments   15,627    15,639    15,648 
Marketable securities   -    -    17,139 
Rental deposits   54    55    61 
Property, plant and equipment, net   30,327    31,183    31,896 
Land use right   1,514    1,545    1,588 
Acquired intangible assets, net   16,459    17,684    12,218 
Deposit paid for acquisition of intangible assets   538    430    145 
Deferred tax assets   53    85    99 
TOTAL ASSETS   284,680    287,911    335,943 
                
LIABILITIES AND EQUITY               
Current liabilities:               
Accounts payable   6,049    5,170    6,016 
Accrued expenses and other current liabilities   8,349    9,680    6,127 
Short-term bank loans   45,000    33,500    35,500 
Other liabilities   1,929    1,728    1,362 
Income tax payable   49    49    49 
Deferred tax liabilities   160    108    343 
Total current liabilities   61,536    50,235    49,397 
                
Other liabilities   -    229    412 
Payable for acquisition of intangible assets   155    -    - 
Deferred tax liabilities   919    958    3,589 
Total liabilities   62,610    51,422    53,398 
Equity:               
Ordinary shares   1    1    1 
Additional paid-in capital   63,046    63,017    63,001 
Treasury Stock   (70,479)   (70,170)   (44,119)
Accumulated other comprehensive income   36,937    38,919    40,734 
Retained earnings   192,598    204,754    222,959 
Total Actions Semiconductor Co., Ltd. shareholders' equity   222,103    236,521    282,576 
Non-controlling interest   (33)   (32)   (31)
Total equity   222,070    236,489    282,545 
TOTAL LIABILITIES AND EQUITY   284,680    287,911    335,943 

 

 
 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands of U.S. dollars, except number of shares and per share amounts)

 

   Three months ended   Three months ended   Year ended   Year ended 
   December 31,   December 31,   December 31,   December 31, 
   2014   2013   2014   2013 
   (unaudited)   (unaudited)   (unaudited)   (audited) 
                 
Revenues:                    
Third-parties:                    
System-on-a-chip products   10,425    15,095    40,932    64,617 
Semiconductor product testing services   36    29    117    135 
    10,461    15,124    41,049    64,752 
Related-parties:                    
System-on-a-chip products   3,401    2,451    9,211    4,639 
Total revenues   13,862    17,575    50,260    69,391 
Cost of revenues:                    
Third-parties:                    
System-on-a-chip products   (12,920)   (11,567)   (37,743)   (44,324)
Semiconductor product testing services   (18)   (13)   (46)   (58)
    (12,938)   (11,580)   (37,789)   (44,382)
Related-parties:                    
System-on-a-chip products   (3,585)   (2,094)   (8,405)   (3,583)
Total cost of revenues   (16,523)   (13,674)   (46,194)   (47,965)
Gross (loss) profit   (2,661)   3,901    4,066    21,426 
Other operating income   231    1,517    890    2,170 
Operating expenses:                    
Research and development   (7,066)   (6,086)   (31,123)   (25,994)
General and administrative   (2,661)   (2,547)   (10,330)   (8,764)
Selling and marketing   (601)   (614)   (2,175)   (2,057)
Impairment on intangible assets   (535)   -    (820)   - 
Total operating expenses   (10,863)   (9,247)   (44,448)   (36,815)
Loss from operations   (13,293)   (3,829)   (39,492)   (13,219)
Other (expense) income   (1,085)   779    (2,736)   2,336 
Dividend income from an other investment   -    -    423    493 
Other-than-temporary impairment loss on investments   -    (681)   -    (681)
Interest income   1,699    3,241    9,611    12,358 
Interest expense   (147)   (146)   (530)   (498)
(Loss) income before income taxes, equity in net income (loss) of equity method investees and non-controlling interest   (12,826)   (636)   (32,724)   789 
Income tax credit (expense)   337    (108)   1,796    (403)
Equity in net income (loss) of equity method investees   332    (82)   566    (264)
Net (loss) income   (12,157)   (826)   (30,362)   122 
Less: Net loss attributable to non-controlling interest   1    1    1    2 
Net (loss) income attributable to Actions Semiconductor Co., Ltd. Shareholders   (12,156)   (825)   (30,361)   124 
                     
Net (loss) income attributable to Actions Semiconductor Co., Ltd. Shareholders                    
Basic (per share)   (0.034)   (0.002)   (0.077)   0.000 
Diluted (per share)   (0.034)   (0.002)   (0.077)   0.000 
                     
Basic (per ADS)   (0.206)   (0.012)   (0.461)   0.002 
Diluted (per ADS)   (0.206)   (0.012)   (0.461)   0.002 
                     
Weighted-average shares used in computation:                    
Basic   353,508,683    412,162,575    395,380,921    412,103,255 
Diluted   353,508,683    412,162,575    395,380,921    425,415,011 
                     
Weighted-average ADS used in computation :                    
Basic   58,918,114    68,693,763    65,896,820    68,683,876 
Diluted   58,918,114    68,693,763    65,896,820    70,902,502 
                     
Note: Share-based compensation recorded in each expense classification above is as follows:                    
Research and development   -    74    10    347 
General and administrative   -    25    5    79 
Selling and marketing   1    3    1    17 
Cost of revenues   28    -    28    49 

 

 
 

 

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

 

   Three months ended   Year ended   Year ended 
   December 31,   December 31,   December 31, 
   2014   2014   2013 
   (unaudited)   (unaudited)   (audited) 
Operating activities:               
Net (loss) income   (12,157)   (30,362)   122 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:               
Depreciation of property, plant and equipment   487    1,949    2,072 
Amortization of land use right   9    36    36 
Amortization of acquired intangible assets   1,138    4,991    3,480 
Allowance for doubtful accounts receivable   179    558    - 
Utilization of subsidy from local authorities of Zhuhai, the People's Republic of China ("PRC")   -    -    (1,068)
Write down of inventories   3,971    6,160    - 
Gain (Loss) on disposal of property, plant and equipment   2    (1)   - 
Loss on disposal of intangible assets   5    420    - 
Share of net (income) loss of equity method investees   (330)   (564)   264 
Share-based  compensation   29    45    492 
Deferred tax   (299)   (3,576)   279 
Dividend income from an other investment   -    (423)   (493)
Impairment loss recognised in respect of other investments   -    -    681 
Impairment loss recognised in respect of intangible assets   535    820    - 
Changes in operating assets and liabilities:               
Accounts receivable   1,487    2,349    195 
Amount due from a related party   (618)   (349)   (961)
Inventories   4,602    (256)   (7,821)
Amount due from an equity method investee   5    (3)   41 
Prepaid expenses and other current assets   (1,122)   (753)   922 
Accounts payable   901    86    (2,198)
Accrued expenses and other current liabilities   935    (415)   (3,717)
Income tax recoverable   (34)   (122)   123 
Income tax payable   1    1    2 
Rental deposit received (paid)   -    5    (11)
Note Receivables   (161)   (161)   - 
Dividend received   -    425    - 
                
Net cash used in operating activities   (435)   (19,140)   (7,560)
                
Investing activities:               
Investment in an equity method investee   -    (9,016)   (3,712)
Proceeds from redemption of marketable securities   6,019    159,296    112,966 
Purchase of marketable securities   (906)   (54,290)   (113,329)
Proceeds from disposal of property, plant and equipment   -    20    41 
Purchase of property, plant and equipment   (66)   (1,156)   (706)
Purchase of intangible assets   (2,606)   (8,044)   (4,134)
Decrease (increase) in time deposits   156    318    (340)
Deposit paid for acquisition of intangible assets   (108)   (457)   (145)
Increase in restricted deposits   (13,089)   (24,974)   (16,819)
Proceeds from disposal of intangible assets   -    24    - 
                
Net cash (used in) provided by investing activities   (10,600)   61,721    (26,178)
                
Financing activities:               
Advance subsidy from local authorities of Zhuhai, the PRC   -    232    714 
Proceeds from exercise of share-based awards   132    2,542    3,041 
Repurchase of ordinary shares   (441)   (28,902)   (4,853)
Raise of short-term bank loans   21,500    31,500    15,000 
Repayment of short-term bank loans   (10,000)   (22,000)   - 
Net cash provided by (used in) financing activities   11,191    (16,628)   13,902 
                
Net increase (decrease) in cash and cash equivalents   156    25,953    (19,836)
                
Cash and cash equivalents at the beginning of the period   78,520    53,263    71,336 
                
Effect of exchange rate changes on cash   (499)   (1,039)   1,763 
Cash and cash equivalents at the end of the period   78,177    78,177    53,263 

 

 

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