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 October 30, 2008

 
ACTIONS SEMICONDUCTOR CO., LTD.

 
15-1, No. 1 HIT Road
Tangjia, 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 o
 
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 o No x
 
Actions Semiconductor Co., Ltd. (the “Company”) is furnishing under cover of Form 6-K a press announcement dated October 30, 2008, relating to Company’s updated outlook for the three months ended September 30, 2008.
 
 
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.
 
   
By:
/S/ Patricia Chou
Patricia Chou
Title:
Chief Financial Officer

Dated: October 30, 2008
 
 

Actions Semiconductor Reports Third Quarter 2008 Results
Company’s Share Repurchase Program Extended Through 2009

ZHUHAI, China, October 30, 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 third quarter ended September 30, 2008.

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

Revenue for the third quarter of 2008 was $27.3 million, as compared to revenue of $26.6 million for the second quarter of 2008, and $27.0 million for the third quarter of 2007.

Net income for the third quarter of 2008 was $7.4 million, or $0.09 per ADS, compared to $7.7 million, or $0.09 per ADS for the second quarter of 2008, and compared to $10.3 million, or $0.12 per ADS for the third quarter of 2007.

Actions Semiconductor reported gross margin of 50.7% and operating margin of 20.9% for the third quarter of 2008. The Company ended the quarter with $53.3 million in cash and cash equivalents together with time deposits. Marketable securities and trading securities at the end of the quarter were $204.9 million.

The Company also announced that its board of directors authorized a one-year extension of the share repurchase program for up to eight million of its American Depositary Shares (ADSs) representing 48 million ordinary shares. The extended term of the repurchase program will expire on December 31, 2009. At the end of third quarter, the Company had invested approximately $12.9 million in the program, representing over 3.2 million ADSs. The repurchased shares are used in connection with the Company's employee benefit plans and other general corporate purposes. At the end of the third quarter of 2008, the Company had approximately 83 million outstanding ADSs.

The Company may repurchase shares in the open market or through privately negotiated transactions. The timing and actual number of ADSs repurchased will depend upon market conditions and other factors, in accordance with Securities and Exchange Commission requirements.

“During the third quarter, we operated under increasingly difficult macroeconomic conditions,” commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. “Despite the challenging market dynamics, sales and gross margin were in line with our expectations for the quarter. We continued to aggressively market our complete product portfolio worldwide and further developed our relationships with brand name and international customers. Our diverse product portfolio has enabled us to protect our leading market position in a sector characterized by intense competition.”

“We remain dedicated to aggressively managing our business through this difficult time, as we focus on our long-term growth opportunities and tightly manage expenses. Given our strong cash position, we believe we are well equipped to weather this period of economic weakness. We continue to be proud of our management team for their commitment to maintaining profitability, generating strong cash flow and sustaining attractive margin levels,” 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 fourth quarter ended December 31, 2008, Actions Semiconductor estimates revenue in the range of $18 to $22 million, and fully diluted earnings per ADS of $0.04 to $0.06. The fourth quarter 2008 estimates include share-based compensation expense in the range of $0.9 to $1.0 million.

Conference Call Details
 
Actions Semiconductor’s third quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, October 30, 2008. To participate in the live call, analysts and investors should dial 866-383-8119 (within U.S.) or 617-597-5344 (outside U.S.) and enter passcode 54017534 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, 2008, by dialing 888-286-8010 (within U.S.) or 617-801-6888 (outside U.S.) and entering the passcode 52920202.

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 Shanghai, 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
Ernie Huang
The Blueshirt Group
Investor Relations at Actions Semiconductor
lisa@blueshirtgroup.com
ernie@actions-semi.com
415-217-4967
+86 756 3392353 ext 1095

 

ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)

   
At September 30,
  
At June 30,
  
At December 31,
  
   
2008
  
2008
  
2007
  
   
(unaudited)
  
(unaudited)
      
ASSETS
                    
Current assets:
                    
Cash and cash equivalents
    
53,286
   
126,745
   
72,054
 
Time deposits
    
62
   
266
   
2,613
 
Restricted cash
    
6,860
   
775
   
1,782
 
Marketable securities
    
195,565
   
139,973
   
165,317
 
Trading securities
    
9,339
   
-
   
-
 
Accounts receivable, net
    
8,885
   
5,674
   
6,046
 
Notes receivable
    
206
   
194
   
372
 
Inventories
    
7,992
   
7,400
   
12,542
 
Prepaid expenses and other current assets
    
2,463
   
2,659
   
2,479
 
Deferred tax assets
    
996
   
902
   
739
 
Total current assets
    
285,654
   
284,588
   
263,944
 
                     
Other investments
    
7,338
   
7,330
   
7,760
 
Rental deposits
    
87
   
86
   
79
 
Property, plant and equipment, net
    
7,221
   
6,683
   
6,436
 
Land use right
    
1,596
   
1,589
   
1,509
 
Acquired intangible assets, net
    
4,782
   
5,510
   
5,849
 
Deposit paid for acquisition of property, plant and equipment
    
35
   
-
   
27
 
Deposit paid to establish an investment
    
10,239
   
-
   
-
 
Deferred tax assets
    
220
   
233
   
-
 
                     
TOTAL ASSETS
    
317,172
   
306,019
   
285,604
 
                     
LIABILITIES AND SHAREHOLDERS' EQUITY
                    
Current liabilities:
                    
Accounts payable
    
7,268
   
8,318
   
12,334
 
Accrued expenses and other current liabilities
    
12,101
   
6,946
   
9,435
 
Other liabilities
    
1,046
   
496
   
884
 
Loan from minority shareholder
    
1,500
   
1,500
   
-
 
Short-term bank loan
    
-
   
-
   
1,519
 
Income tax payable
    
556
   
565
   
749
 
Deferred tax liabilities
    
176
   
82
   
-
 
Total current liabilities
    
22,647
   
17,907
   
24,921
 
                     
Other liabilities
    
294
   
729
   
686
 
Deferred tax liabilities
    
1,391
   
917
   
-
 
                     
Total liabilities
    
24,332
   
19,553
   
25,607
 
                     
Minority interest
    
140
   
174
   
204
 
                     
Shareholders' equity:
                    
Ordinary shares
    
1
   
1
   
1
 
Additional paid-in capital
    
38,784
   
41,592
   
43,679
 
Accumulated other comprehensive income
    
21,496
   
19,680
   
9,628
 
Retained earnings
    
232,419
   
225,019
   
206,485
 
                     
Total shareholders' equity
    
292,700
   
286,292
   
259,793
 
                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    
317,172
   
306,019
   
285,604
 
 

ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED INCOME STATEMENT
(in thousands of U.S. dollars,except per share amounts)

   
Three months ended
  
Three months ended
  
Nine months ended
  
Nine months ended
  
   
September 30,
  
September 30,
  
September 30,
  
September 30,
  
   
2008
  
2007
  
2008
  
2007
  
   
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
                   
Revenues
    
27,298
   
27,043
   
79,077
   
84,297
 
Cost of revenues
    
(13,455
)
  
(13,024
)
  
(38,546
)
  
(41,700
)
Gross profit
    
13,843
   
14,019
   
40,531
   
42,597
 
Other operating income
    
59
   
8
   
636
   
380
 
Operating expenses:
                          
Research and development
    
(4,842
)
  
(3,681
)
  
(14,430
)
  
(8,938
)
General and administrative
    
(2,932
)
  
(2,837
)
  
(7,653
)
  
(8,105
)
Selling and marketing
    
(419
)
  
(470
)
  
(1,245
)
  
(1,222
)
Total operating expenses
    
(8,193
)
  
(6,988
)
  
(23,328
)
  
(18,265
)
Income from operations
    
5,709
   
7,039
   
17,839
   
24,712
 
Other income(expense)
    
(784
)
  
1,757
   
1,628
   
4,398
 
Dividend income
    
20
   
-
   
20
   
-
 
Fair value change in trading securities
    
48
   
-
   
48
   
-
 
Interest income
    
3,421
   
1,695
   
8,766
   
5,189
 
Interest expense
   
-
   
(20
)
  
(4
)
  
(62
)
Income before income taxes, equity in net income(loss) of an affiliate and minority interests
    
8,414
   
10,471
   
28,297
   
34,237
 
Income tax
    
(1,048
)
  
(305
)
  
(2,424
)
  
(1,705
)
Equity in net income(loss) of an affiliate
    
-
   
67
   
-
   
103
 
Minority interests
    
34
   
53
   
61
   
145
 
Net income
    
7,400
   
10,286
   
25,934
   
32,780
 
                           
Net income per share:
                          
Basic and diluted per share:
    
0.01
    
0.02
    
0.05
    
0.06
  
                           
Basic and diluted (per ADS)
    
0.09
    
0.12
    
0.31
    
0.38
  
                           
Weighted-average shares used in computation:
                          
Basic and diluted
    
501,332,494
    
512,972,522
    
505,195,617
    
514,866,876
  
                           
Weighted-average ADS used in computation :
                          
Basic and diluted
    
83,555,416
    
85,495,420
    
84,199,270
    
85,811,146
  
                           
Note:Stock-based compensation recorded in each expense classification above is as follows:
                          
Cost of revenues
    
46
   
-
   
66
   
-
 
Research and development
    
573
   
-
   
821
   
-
 
General and administrative
    
272
   
-
   
389
   
-
 
Selling and marketing
    
52
   
-
   
75
   
-
 
 

ACTIONS SEMICONDUCTOR CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)

   
Three months ended
September 30,2008
  
Nine months ended
September 30,2008
  
Nine months ended
September 30,2007
  
   
(unaudited)
  
(unaudited)
  
(unaudited)
  
Operating activities:
                    
Net income
    
7,400
   
25,934
   
32,780
 
Adjustments to reconcile net income to net cash provided by operating activities:
                    
Depreciation and amortization of property, plant and equipment
    
525
   
1,518
   
1,167
 
Amortization of acquired intangible assets
    
870
   
2,444
   
1,621
 
Loss on disposal of property, plant and equipment
    
1
   
63
   
317
 
Gain on disposal of intangible assets
    
-
   
-
   
(18
)
Gain on disposal of other investment
    
-
   
(6
)
  
-
 
Dividend income
    
(20
)
  
(20
)
  
-
 
Fair value of the stock options
    
943
   
1,351
   
-
 
Minority interests
    
(34
)
  
(64
)
  
(146
)
Equity in net loss of an affiliate
    
-
   
-
   
(103
)
Fair value change in trading securities
    
(48
)
  
(48
)
  
-
 
Changes in operating assets and liabilities:
                    
Accounts receivable
    
(3,206
)
  
(2,834
)
  
(913
)
Notes receivable
    
(10
)
  
183
   
1,200
 
Inventories
    
(521
)
  
5,274
   
(4,556
)
Prepaid expenses and other current assets
    
217
   
681
   
3,375
 
Amount due from an affiliate
    
-
   
52
   
67
 
Accounts payable
    
(1,134
)
  
(5,799
)
  
(8,822
)
Accrued expenses and other current liabilities
    
4,936
   
(497
)
  
(4,544
)
Income tax payable
    
(15
)
  
(244
)
  
(1,716
)
Rental deposits
    
-
   
(3
)
  
8
 
Deferred taxes
    
495
   
1,100
   
20
 
Net cash provided by operating activities
    
10,399
   
29,085
   
19,737
 
                     
Investing activities:
                    
Dividend from other investment
    
20
   
20
   
-
 
Deposit paid to establish an investment
    
(10,239
)
  
(10,239
)
  
-
 
Increase in other investment
    
(50
)
  
(165
)
  
(3,937
)
Proceeds from disposal of property, plant and equipment
    
18
   
18
   
39
 
Proceeds from disposal of intangible assets
    
-
   
-
   
64
 
Increase in marketable securities
    
(54,166
)
  
(19,023
)
  
(74,942
)
Purchase of trading securities
    
(26,402
)
  
(26,402
)
  
-
 
Proceeds from disposal of trading securities
    
17,111
   
17,111
   
-
 
Purchase of property, plant and equipment
    
(1,049
)
  
(1,906
)
  
(2,356
)
Purchase of intangible assets
    
(369
)
  
(977
)
  
(3,999
)
Increase in restricted cash
    
(6,077
)
  
(4,998
)
  
(2,997
)
Decrease in time deposits
    
206
   
2,690
   
32,314
 
Cash used in investing activities
    
(80,997
)
  
(43,871
)
  
(55,814
)
                     
Financing activities:
                    
Proceeds from short-term bank loans
    
-
   
-
   
1,431
 
Repayment of short-term bank loans
    
-
   
(1,580
)
  
-
 
Proceeds from loan from minority shareholder
    
-
   
1,500
   
(10
)
Advance subsidy from local authorities of Zhuhai,the PRC
    
104
   
(334
)
  
182
 
Repurchase of ordinary shares
    
(3,751
)
  
(6,246
)
  
(3,808
)
Cash used in financing activities
    
(3,647
)
  
(6,660
)
  
(2,205
)
                     
Effect of exchange rate changes on cash
    
786
   
2,678
   
1,601
 
                     
Net decrease in cash and cash equivalents
    
(73,459
)
  
(18,768
)
  
(36,681
)
                     
Cash and cash equivalents at the beginning of the period
    
126,745
   
72,054
   
137,778
 
Cash and cash equivalents at the end of the period
    
53,286
   
53,286
   
101,097