Actions
Semiconductor Reports Second Quarter 2008 Results
ZHUHAI,
China, August 4, 2008 – 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 second quarter ended June 30, 2008.
All
financial results are reported on a U.S. GAAP basis.
Revenue
for the second quarter of 2008 was $26.6 million, as compared to revenue
of
$25.2 million for the first quarter of 2008, and $27.0 million for the
second
quarter of 2007.
Net
income for the second quarter of 2008 was $7.7 million, or $0.09 per ADS,
compared to $10.8 million, or $0.13 per ADS for the first quarter of 2008,
and
compared to $9.8 million, or $0.11 per ADS for the second quarter of 2007.
The
second quarter results include a one-time charge of approximately $2.0
million
associated with the acquisition of a 2D graphic in-process technology from
Hi-Trend Technology (Shanghai) Co., Ltd. (Hi-Trend), a Chinese IC design
house
with graphics expertise, during the quarter.
Actions
Semiconductor reported gross margin of 50.1% and operating margin of 16.7%
for
the second quarter of 2008. The Company ended the quarter with $127.8 million
in
cash and cash equivalents together with restricted cash and time deposits.
Marketable securities at the end of the quarter was $140.0 million.
“Our
solid results this quarter were driven by a strong ramp in sales of our
products
to emerging markets, such as South America, Russia and India, coupled with
a
lower than expected average selling price erosion during the quarter,” commented
Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. “We began the
product upgrade from the Series 9 to the Series 11 chipset for the mainstream
segment and reached the shipment milestone of 100,000 units per month in
this
new product category during the quarter. We also employed a 30-person
engineering team from Hi-Trend, and have fully integrated it into our Shanghai
and Zhuhai R&D centers.
“We
continued to expand our international and brand name presence with two
significant achievements announced during the quarter. We enhanced our
long term
partnership with Coby Electronics Corporation on its new line of PMPs for
the
U.S. market and we were selected as the exclusive chip provider to China’s MPR
(MPEG Reader) technology developer, Shenzhen MPR Times Technology Co. Ltd.
These
partnerships are a testament to the industry leading caliber of our technology
and reflect our commitment to expanding the use of our SoC solutions globally.
Looking to the second half of 2008, we are encouraged by the opportunities
to
expand our market presence,” 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
third quarter ended September 30, 2008, Actions Semiconductor estimates
revenue
in the range of $26 to $28 million, and fully diluted earnings per ADS
of $0.11
to $0.13. The third quarter 2008 estimates include a pre-tax share-based
compensation expense in the range of $0.9 to $1.0 million.
Conference
Call Details
Actions
Semiconductor’s Second Quarter teleconference and webcast is scheduled to begin
at 5:30 p.m. Eastern Time, on Monday, August 4, 2008. To participate in
the live
call, analysts and investors should dial
866-277-1181 (within U.S.) or 617-597-5358 (outside U.S.) and enter passcode
92168197 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 August
11,
2008, by dialing 888-286-8010 (within U.S.) or 617-801-6888 (outside U.S.)
and
entering the passcode 24602555.
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
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Lisa
Laukkanen
|
Ernie
Huang
|
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The
Blueshirt Group
|
Investor
Relations at Actions Semiconductor
|
|
ernie@actions-semi.com
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|
415-217-4967
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+86
756 3392353 ext 1095
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