Actions
Semiconductor Reports Third Quarter 2007 Results
ZHUHAI,
China, October 30, 2007 - 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 third quarter ended September 30, 2007.
The
unaudited financial results are reported on a U.S. GAAP basis.
Revenue
for the third quarter of 2007 was $27.0 million, compared to $27.0 million
for
the second quarter of 2007, and $45.7 million for the third quarter of 2006.
Net
income for the third quarter of 2007 was $10.3 million, or $0.12 per ADS,
compared to $9.8 million, or $0.11 per ADS for the second quarter of 2007,
and
compared to $20.5 million, or $0.24 per ADS for the third quarter of 2006.
Actions
Semiconductor reported operating margin of 26.0% and gross margin of 51.8%
for
the third quarter of 2007. The company ended the quarter with $215.2 million
cash and cash equivalents together with time deposits, restricted cash and
short-term marketable securities.
“During
the third quarter, we continued to navigate our business through a highly
competitive marketplace,” commented Nan-Horng Yeh, Chief Executive Officer of
Actions Semiconductor. “While we were disappointed that these challenging market
conditions led to results below our original expectations, we were encouraged
to
see improving margins as a result of our cost savings migration, and we
continued to deliver amongst the highest margins in our sector. Demand for
our
Series 9 products remains strong. We are enthusiastic about the long-term
opportunities for our expanded product portfolio which now effectively addresses
the full spectrum of the market from the low end to the high end. We remain
dedicated to preserving our market leadership position, and we are committed
to
improving our business fundamentals by maintaining our solid financial position,
strengthening our engineering resources, focusing on product innovation,
and
targeting new markets internationally.”
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 December 31, 2007, Actions Semiconductor estimates revenue
in the
range of $32
to $35
million, and, fully diluted earnings per ADS of $0.14 to $0.17.
Conference
Call Details
Actions
Semiconductor’s Third Quarter teleconference and webcast is scheduled to begin
at 5:30 p.m. Eastern Time, on Tuesday, October 30, 2007. To participate in
the
live call, analysts and investors should dial
866-770-7120 or 617- 213-8065 and enter passcode 49239971 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 investors through November
6,
2007, by dialing 888-286-8010 or 617-801-6888 and entering the passcode
12323630.
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
|
|
lisa@blueshirtgroup.com
|
chung@actions-semi.com
|
|
415-217-4967
|
+86-756
3392 353 *1015
|
|
|
||||||||||
|
ACTIONS
SEMICONDUCTOR CO., LTD.
|
||||||||||
|
CONSOLIDATED
BALANCE SHEET
|
||||||||||
|
(In
thousands of U.S. dollars)
|
||||||||||
|
At
September 30,
|
At
June 30,
|
At
December 31,
|
||||||||
|
2007
|
2007
|
2006
|
||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||
|
ASSETS
|
||||||||||
|
Current
assets:
|
||||||||||
|
Cash
and cash equivalents
|
101,097
|
109,387
|
137,778
|
|||||||
|
Time
deposits
|
14,334
|
39,803
|
45,713
|
|||||||
|
Restricted
cash
|
3,070
|
3,022
|
-
|
|||||||
|
Marketable
securities
|
96,651
|
55,366
|
20,531
|
|||||||
|
Accounts
receivable
|
6,772
|
6,381
|
5,859
|
|||||||
|
Notes
receivable
|
974
|
516
|
2,154
|
|||||||
|
Inventories
|
11,210
|
12,816
|
6,280
|
|||||||
|
Prepaid
expenses and other current assets
|
3,172
|
4,447
|
6,413
|
|||||||
|
Amount
due from an affiliate
|
67
|
75
|
133
|
|||||||
|
Deferred
tax assets
|
642
|
518
|
662
|
|||||||
|
Total
current assets
|
237,989
|
232,331
|
225,523
|
|||||||
|
|
||||||||||
|
Investment
in an affiliate
|
1,572
|
1,505
|
1,469
|
|||||||
|
Other
investments
|
3,937
|
3,937
|
-
|
|||||||
|
Rental
deposits
|
45
|
44
|
52
|
|||||||
|
Property,
plant and equipment, net
|
7,907
|
7,227
|
6,749
|
|||||||
|
Acquired
intangible assets, net
|
6,162
|
4,541
|
3,787
|
|||||||
|
Deposit
paid for acquisition of property, plant and equipment
|
54
|
13
|
91
|
|||||||
|
19,677
|
17,267
|
12,148
|
||||||||
|
TOTAL
ASSETS
|
257,666
|
249,598
|
237,671
|
|||||||
|
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||||
|
Current
liabilities:
|
||||||||||
|
Accounts
payable
|
7,337
|
9,777
|
15,715
|
|||||||
|
Accrued
expenses and other current liabilities
|
7,305
|
4,898
|
9,490
|
|||||||
|
Amounts
due to shareholders
|
-
|
-
|
10
|
|||||||
|
Other
liabilities
|
907
|
893
|
692
|
|||||||
|
Short-term
bank loan
|
1,479
|
1,570
|
-
|
|||||||
|
Income
tax payable
|
578
|
586
|
2,258
|
|||||||
|
|
||||||||||
|
Total
current liabilities
|
17,606
|
17,724
|
28,165
|
|||||||
|
|
||||||||||
|
Minority
interest
|
340
|
394
|
486
|
|||||||
|
|
||||||||||
|
Shareholders'
equity:
|
||||||||||
|
Ordinary
shares
|
1
|
1
|
1
|
|||||||
|
Additional
paid-in capital
|
46,533
|
49,337
|
50,341
|
|||||||
|
Accumulated
other comprehensive income
|
6,124
|
5,366
|
4,396
|
|||||||
|
Retained
earnings
|
187,062
|
176,776
|
154,282
|
|||||||
|
|
||||||||||
|
Total
shareholders' equity
|
239,720
|
231,480
|
209,020
|
|||||||
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
257,666
|
249,598
|
237,671
|
|||||||
|
ACTIONS
SEMICONDUCTOR CO., LTD.
|
|||||||||||||
|
CONSOLIDATED
INCOME STATEMENT
|
|||||||||||||
|
(In
thousands of U.S. dollars, except per share
amount)
|
|||||||||||||
|
3
months ended September 30,
|
3
months ended September 30,
|
9
months ended September 30,
|
9
months ended September 30,
|
||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||
|
Revenues
|
27,043
|
45,667
|
84,297
|
120,825
|
|||||||||
|
Cost
of revenues
|
(13,024
|
)
|
(19,757
|
)
|
(41,700
|
)
|
(51,955
|
)
|
|||||
|
Gross
profit
|
14,019
|
25,910
|
42,597
|
68,870
|
|||||||||
|
Other
income
|
8
|
262
|
380
|
1,157
|
|||||||||
|
Operating
expenses:
|
|||||||||||||
|
Research
and development
|
(3,681
|
)
|
(2,790
|
)
|
(8,938
|
)
|
(7,396
|
)
|
|||||
|
General
and administrative
|
(2,837
|
)
|
(2,263
|
)
|
(8,105
|
)
|
(6,769
|
)
|
|||||
|
Selling
and marketing
|
(470
|
)
|
(467
|
)
|
(1,222
|
)
|
(1,114
|
)
|
|||||
|
Total
operating expenses
|
(6,988
|
)
|
(5,520
|
)
|
(18,265
|
)
|
(15,279
|
)
|
|||||
|
Income
from operations
|
7,039
|
20,652
|
24,712
|
54,748
|
|||||||||
|
Other
income
|
1,757
|
-
|
4,398
|
-
|
|||||||||
|
Interest
income
|
1,695
|
1,310
|
5,189
|
3,380
|
|||||||||
|
Interest
expense
|
(20
|
)
|
(14
|
)
|
(62
|
)
|
(160
|
)
|
|||||
|
Income
before income taxes, equity in net loss of an affiliate and minority
interests
|
10,471
|
21,948
|
34,237
|
57,968
|
|||||||||
|
Income
taxes
|
(305
|
)
|
(1,493
|
)
|
(1,705
|
)
|
(4,399
|
)
|
|||||
|
Equity
in net loss of an affiliate
|
67
|
(2
|
)
|
103
|
(140
|
)
|
|||||||
|
Minority
interests
|
53
|
32
|
145
|
58
|
|||||||||
|
Net
income
|
10,286
|
20,485
|
32,780
|
53,487
|
|||||||||
|
|
|||||||||||||
|
Net
income per share:
|
|||||||||||||
|
Basic
and diluted per share:
|
0.02
|
0.04
|
0.06
|
0.10
|
|||||||||
|
Basic
and diluted (per ADS)
|
0.12
|
0.24
|
0.38
|
0.62
|
|||||||||
|
|
|||||||||||||
|
Weighted-average
shares used in computation:
|
|||||||||||||
|
Basic
and diluted
|
512,972,522
|
516,000,000
|
514,866,876
|
516,000,000
|
|||||||||
|
|
|||||||||||||
|
Weighted-average
ADS used in computation :
|
|||||||||||||
|
Basic
and diluted
|
85,495,420
|
86,000,000
|
85,811,146
|
86,000,000
|
|||||||||
|
ACTIONS
SEMICONDUCTOR CO., LTD.
|
||||||||||
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||||
|
(In
thousands of U.S. dollars)
|
||||||||||
|
Three
months ended September 30,2007
|
Nine
months ended September 30,2007
|
Nine
months ended September 30,2006
|
||||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||
|
Operating
activities:
|
||||||||||
|
Net
income
|
10,286
|
32,780
|
53,487
|
|||||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
|
Depreciation
and amortization of property, plant and equipment
|
441
|
1,167
|
670
|
|||||||
|
Amortization
of acquired intangible assets
|
619
|
1,621
|
604
|
|||||||
|
Utilization
of advance subsidy from local authorities of Zhuhai,
the
People's Republic of China
|
-
|
-
|
(35
|
)
|
||||||
|
Loss
on disposal of property, plant and equipment
|
2
|
317
|
(3
|
)
|
||||||
|
Gain
on disposal of intangible assets
|
-
|
(18
|
)
|
-
|
||||||
|
Minority
interests
|
(54
|
)
|
(146
|
)
|
(58
|
)
|
||||
|
Deferred
tax
|
(124
|
)
|
20
|
528
|
||||||
|
Equity
in net loss of an affiliate
|
(67
|
)
|
(103
|
)
|
140
|
|||||
|
Changes
in operating assets and liabilities:
|
||||||||||
|
Accounts
receivable
|
(391
|
)
|
(913
|
)
|
2,886
|
|||||
|
Notes
receivable
|
(450
|
)
|
1,200
|
1,236
|
||||||
|
Inventories
|
1,793
|
(4,556
|
)
|
(2,099
|
)
|
|||||
|
Prepaid
expenses and other current assets
|
1,344
|
3,375
|
(1,943
|
)
|
||||||
|
Income
tax recoverable
|
-
|
-
|
11
|
|||||||
|
Amount
due from an affiliate
|
9
|
67
|
-
|
|||||||
|
Accounts
payable
|
(2,591
|
)
|
(8,822
|
)
|
2,748
|
|||||
|
Accrued
expenses and other current liabilities
|
740
|
(4,544
|
)
|
(2,926
|
)
|
|||||
|
Income
tax payable
|
(15
|
)
|
(1,716
|
)
|
1,486
|
|||||
|
Rental
deposits
|
-
|
8
|
(40
|
)
|
||||||
|
Net
cash provided by operating activities
|
11,542
|
19,737
|
56,692
|
|||||||
|
|
||||||||||
|
Investing
activities:
|
||||||||||
|
Proceeds
from disposal of property, plant and equipment
|
8
|
39
|
47
|
|||||||
|
Proceeds
from disposal of intangible assets
|
-
|
64
|
-
|
|||||||
|
Increase
in marketable securities
|
(40,407
|
)
|
(74,942
|
)
|
-
|
|||||
|
Increase
in other investments
|
-
|
(3,937
|
)
|
-
|
||||||
|
Investment
in an affiliate
|
-
|
-
|
(1,125
|
)
|
||||||
|
Purchase
of property, plant and equipment
|
(1,057
|
)
|
(2,356
|
)
|
(5,502
|
)
|
||||
|
Purchase
of acquired intangible assets
|
(2,160
|
)
|
(3,999
|
)
|
(902
|
)
|
||||
|
(Increase)
decrease in restricted cash
|
-
|
(2,997
|
)
|
2,512
|
||||||
|
Decrease
(increase) in time deposits
|
26,101
|
32,314
|
(48,618
|
)
|
||||||
|
Cash
used in investing activity
|
(17,515
|
)
|
(55,814
|
)
|
(53,588
|
)
|
||||
|
Financing
activities:
|
||||||||||
|
(Decrease)
increase in short-term bank loans
|
(116
|
)
|
1,431
|
(2,220
|
)
|
|||||
|
Advance
subsidy from others
|
-
|
182
|
249
|
|||||||
|
Repurchase
of common stock
|
(2,804
|
)
|
(3,808
|
)
|
-
|
|||||
|
(Decrease)
increase in amounts due to shareholders
|
-
|
(10
|
)
|
77,377
|
||||||
|
|
||||||||||
|
Cash
(used in) provided by financing activities
|
(2,920
|
)
|
(2,205
|
)
|
75,406
|
|||||
|
|
||||||||||
|
Effect
of exchange rate changes on cash
|
603
|
1,601
|
1,119
|
|||||||
|
|
||||||||||
|
Net
(decrease) increase in cash and cash equivalents
|
(8,290
|
)
|
(36,681
|
)
|
79,629
|
|||||
|
Cash
and cash equivalents at the beginning of the period
|
109,387
|
137,778
|
108,896
|
|||||||
|
Cash
and cash equivalents at the end of the period
|
101,097
|
101,097
|
188,525
|
|||||||
Actions
Semiconductor Promotes Patricia Chou to Chief Financial Officer
David
Lee, Former CFO, Assumes Role as Chairman of the Board
Nan-Horng
Yeh, Actions’ CEO, and Fred Chen, Educator and Businessman, Added to the Board
ZHUHAI,
China, October 30, 2007 - Actions Semiconductor Co., Ltd. (Nasdaq: ACTS),
one
of China's leading fabless semiconductor companies,
today
announced that Patricia Chou, Vice President of Finance, has been promoted
to
the position of chief financial officer as David Lee assumes the role of
chairman of the board as part of the company’s succession plan. In addition, the
Board appointed Nan-Horng Yeh and Fred Chen as directors.
“We
are
pleased to promote Patricia to a position that takes full advantage of her
skill
set and financial management expertise,” stated Mr. Nan-Horng Yeh, CEO of
Actions Semiconductor. “Patricia has consistently demonstrated her readiness to
assume the CFO position during her tenure at the company, and I am confident
that she will be a strong addition to the executive team. Patricia’s impressive
track record in her prior positions has demonstrated her competence in executing
on a wide variety of business fundamentals.”
Chou
has
served as Vice President of Finance since joining Actions in November 2006.
As
VP of Finance at Actions, Chou oversaw a finance team that remotely managed
seven operation sites and executed major corporate finance projects. Starting
in
2001, Chou served as the Director of Business Development and then Senior
Director of Accounting at SMIC (Semiconductor Manufacturing International
Corporation), where she was responsible for establishing a U.S. presence,
developing new business initiatives, and leading the company’s global accounting
functions. She also participated in raising $650 million in private funds
and
the company’s $1.6 billion NYSE-listed IPO. From 1996 to 2001, Patricia was the
Director of Accounting and Planning of Winbond Electronics Corporation U.S.
operation. Prior to that, Chou worked as a financial auditor in Taiwan, Hong
Kong, and the United States with Deloitte. Chou received a Bachelor of Business
Administration from National Taiwan University, Master of Accounting from
University of Southern California, and Master of Business Administration
from
University of California at Berkeley, she is also a Certified Public Accountant
in Taiwan, the United States, and China.
David
Lee
is stepping down from the chief financial officer position to pursue personal
interests and will assume the role of chairman of the board. Lee has served
as
CFO at Actions since joining the company in August 2005.
“We
welcome Nan, David and Fred to Actions’ Board of Directors,” stated Tzu-Yin
Chiu, Director of Action’s Board. “The Board looks forward to Nan’s
participation and guidance. Additionally, we are pleased to continue to benefit
from David’s experience as he assumes the role of chairman. David has been
instrumental in Actions’ success and we look forward to his continued
contributions.”
“I
am
also delighted to announce that Fred Chen has been appointed as an independent
director on our board,” continued Mr. Chiu. “We welcome Fred’s wealth of
technical knowledge and anticipate that he will be a valuable asset to the
board
of directors.”
Professor
Fred Chen currently serves as the Director of the OLED Laboratory, Display
Institute, National Chiao Tung University in Hsinchu, Taiwan and as the Director
of the Centre for Advanced Luminescence Materials (CALM) at Hong Kong Baptist
University. He previously worked in the Display Technology Laboratory of
Eastman
Kodak Co., Rochester, New York, U.S., first as senior scientist and later,
a
group leader for more than 25 years engaging in the development of various
novel
displays and materials related to imaging technologies. He is a co-inventor
of
the key Doped
OLED Guest-Host Emitter Technology
and has
been awarded more than 35 U.S. patents on his novel optoelectronic materials
work.
The
additions to the board of directors are in conjunction with the departures
of
Byung-Jin Kang, Chairman, and Hui-Dong Tien, Director, from the board of
directors. Mr. Kang and Mr. Tien resigned to devote more time to other
activities. With these changes, the number of members on board of directors
increased from six to seven.
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.
For
More Information
|
Lisa
Laukkanen
|
Chung
Hsu
|
|
The
Blueshirt Group for Actions Semiconductor
|
Investor
Relations at Actions
|
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lisa@blueshirtgroup.com
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chung@actions-semi.com
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+1-415-217-4967
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+86-756
3392 353 *1015
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