Unassociated Document

“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 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.

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.

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.

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 intangiable 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 ended Mar 31,			3 months ended Dec 31,			3 months 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

*Investor Contacts:*		Calvin Lau
Suzanne Craig or Lisa Laukkanen		Director of Investor Relations
The Blueshirt Group		Actions Semiconductor
suzanne@blueshirtgroup.com		+86-756 3392 353 *1018
lisa@blueshirtgroup.com
415-217-4962 or 415-217-4967