EX-99.1 2 v366443_ex99-1.htm EXHIBIT 99.1

 

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Actions Semiconductor Reports Fourth Quarter and Full Year 2013 Results

Fourth Quarter Revenue Up 15.9% Year-Over-Year

 

ZHUHAI, China, January 27, 2014 -- 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, 2013.

 

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

 

Revenue for the fourth quarter of 2013 was $17.6 million, as compared to revenue of $16.9 million for the third quarter of 2013, and $15.2 million for the fourth quarter of 2012.

 

Revenue for the year ended December 31, 2013 was $69.4 million, compared to $54.3 million for the year ended December 31, 2012.

 

Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2013 was $0.8 million or $0.012 per basic and diluted American Depositary Share ("ADS"). This compares to net loss attributable to Actions Semiconductor's shareholders of $0.2 million or $0.002 per basic and diluted ADS, for the third quarter of 2013, and a net loss attributable to Actions Semiconductor’s shareholders of $1.7 million or $0.024 per basic and diluted ADS, for the fourth quarter of 2012.

 

Net income attributable to Actions Semiconductor's shareholders for the year ended December 31, 2013 was $0.1 million or $0.002 per basic and diluted ADS.  This compares to a net loss attributable to Actions Semiconductor's shareholders of $2.2 million or $0.032 per basic and diluted ADS, for the year ended December 31, 2012. 

 

Actions Semiconductor reported gross margin of 22.2% for the fourth quarter of 2013, compared to gross margin of 33.2% for the third quarter of 2013, and 32.1% for the fourth quarter of 2012. The Company ended the fourth quarter with $224.6 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities, current and non-current.

 

Since the share repurchase program commenced in 2007, the Company has invested approximately $50.4 million in repurchasing its shares. As of December 31, 2013, approximately 22.1 million American Depositary Shares (ADSs) were repurchased.

 

“The year of 2013 was a critical one for our Company. We achieved top line growth of 28%, above our 25% target, and improved our bottom line. Following the successful introduction of our OWL series product family, we have made good progress in penetrating the white-box tablet market and carving market share. We are also excited about the new growth opportunity brought by wireless connectivity to our traditional multimedia business. During the fourth quarter, our second generation dual-core solution, ATM7021, made further inroads in the low end of the tablet market and our new Bluetooth enabled boombox solutions reached volume shipments,” stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.

 

“As we enter 2014, we are targeting full year revenue growth between 20% and 25%. We believe our OWL series product family provides us with the opportunity to gain share in each segment of the tablet market in 2014, as tablet manufacturers continue migrating to dual-core chipsets for their low-end products and accelerate the use of quad-core solutions for their mid- to high-end models. At the same time, we expect our newer wireless connectivity enabled multimedia products such as our Bluetooth boombox solutions to make a meaningful contribution to our revenue.

 

“We believe, as one of the leading design houses in China, our profitability is directly linked to our ability to maintain technology leadership and provide compelling products at each targeted market segment. In 2014, we will streamline our research and development organization while investing in intellectual property and talent as we seek to enhance our brand image for both multimedia and tablet products,” 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 2014 to be in the range of $12.0 to $13.0 million. This reflects the return to a more traditional seasonal sales pattern compared to the same period last year, when the Company experienced a steep ramp in shipments associated with the introduction of its new tablet SoC solutions.

 

The first quarter of the year is traditionally the Company’s 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 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Monday, January 27, 2014. To participate in the live call, analysts and investors should dial 1-877-941-1465 (within U.S.) or 1-480-629-9723 (outside U.S.) 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 February 6, 2014 by dialing 1-800-406-7325 (within U.S.) or 1-303-590-3030 (outside U.S.) and entering access code 4662006.

 

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 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. Such forward-looking statements include statements concerning the outlook for its dual-core and quad-core solutions in domestic and overseas markets, 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 these trends, and Actions Semiconductor's future expectations with respect to revenue growth. 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 SHEET
(in thousands of U.S. dollars)

 

   At December 31,   At September 30,   At December 31, 
   2013   2013   2012 
   (unaudited)   (unaudited)   (audited) 
ASSETS               
Current assets:               
  Cash and cash equivalents   53,263    67,884    71,336 
  Time deposits   27,508    21,453    10,000 
  Marketable securities   126,607    126,282    130,721 
  Trading securities   74    75    76 
  Accounts receivable   5,782    7,294    5,950 
  Notes receivable       37     
  Amount due from a related party   1,301        340 
  Amount due from an equity method investee   38    75    79 
  Inventories, net of inventory written-down of $1,558, $1,276 and $701 as of
  December 31, 2013, September 30, 2013 and December 31, 2012, respectively
   20,278    25,414    11,979 
  Prepaid expenses and other current assets   3,972    3,018    4,288 
  Income tax recoverable   67    79    189 
  Deferred tax assets   416    466    504 
Total current assets   239,306    252,077    235,462 
                
  Investments in equity method investees   17,843    17,903    14,329 
  Other investments   15,648    16,321    16,305 
  Marketable securities   17,139        11,239 
  Rental deposits   61    66    49 
  Property, plant and equipment, net   31,896    31,817    32,321 
  Land use right   1,588    1,584    1,584 
  Acquired intangible assets, net   12,218    11,101    10,819 
  Deposit paid for acquisition of intangible assets   145    759     
  Deferred tax assets   99    69    80 
TOTAL ASSETS   335,943    331,697    322,188 
                
LIABILITIES AND EQUITY               
Current liabilities:               
  Accounts payable   6,016    6,317    8,073 
  Accrued expenses and other current liabilities   6,127    5,688    8,411 
  Short-term bank loans   35,500    30,500    20,500 
  Other liabilities   1,362    2,176    2,056 
  Income tax payable   49    49    49 
  Deferred tax liabilities   343    260    534 
Total current liabilities   49,397    44,990    39,623 
                
  Other liabilities   412    13    13 
  Payable for acquisition of intangible assets       128    603 
  Deferred tax liabilities   3,589    3,597    3,189 
Total liabilities   53,398    48,728    43,428 
Equity:               
  Ordinary shares   1    1    1 
  Additional paid-in capital   18,882    20,154    20,202 
  Accumulated other comprehensive income   40,734    39,061    35,751 
  Retained earnings   222,959    223,784    222,835 
Total Actions Semiconductor Co., Ltd. shareholders' equity   282,576    283,000    278,789 
  Non-controlling interest   (31)   (31)   (29)
Total equity   282,545    282,969    278,760 
TOTAL LIABILITIES AND EQUITY   335,943    331,697    322,188 

 

 
 

  

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, 
    2013    2012    2013    2012 
    (unaudited)    (unaudited)    (unaudited)    (audited) 
                     
Revenues:                    
  Third-parties:                    
   System-on-a-chip products   15,095    14,314    64,617    52,356 
   Semiconductor product testing services   29    28    135    179 
    15,124    14,342    64,752    52,535 
  Related-parties:                    
   System-on-a-chip products   2,451    817    4,639    1,794 
  Total revenues   17,575    15,159    69,391    54,329 
Cost of revenues:                    
  Third-parties:                    
   System-on-a-chip products   (11,567)   (9,697)   (44,324)   (33,814)
   Semiconductor product testing services   (13)   (15)   (58)   (100)
    (11,580)   (9,712)   (44,382)   (33,914)
  Related-parties:                    
   System-on-a-chip products   (2,094)   (587)   (3,583)   (1,193)
  Total cost of revenues   (13,674)   (10,299)   (47,965)   (35,107)
Gross profit   3,901    4,860    21,426    19,222 
Other operating income   1,517    136    2,170    896 
Operating expenses:                    
  Research and development   (6,086)   (6,195)   (25,995)   (23,739)
  General and administrative   (2,547)   (2,660)   (8,764)   (8,573)
  Selling and marketing   (614)   (364)   (2,057)   (1,281)
Total operating expenses   (9,247)   (9,219)   (36,816)   (33,593)
Loss from operations   (3,829)   (4,223)   (13,220)   (13,475)
Other income   779    1,674    2,336    1,547 
Dividend income from an other investment   0    0    493    0 
Fair value change in trading securities   0    0    0    2 
Other-than-temporary impairment loss on investments   (681)   (2,543)   (681)   (2,543)
Interest income   3,241    3,257    12,358    13,240 
Interest expense   (146)   (63)   (498)   (250)
(Loss) income before income taxes, equity in net (loss) income of equity method investees and non-controlling interest   (636)   (1,898)   788    (1,479)
Income tax (expense) credit   (108)   370    (403)   (772)
Equity in net (loss) income of equity method investees   (82)   (128)   (264)   41 
Net (loss) income   (826)   (1,656)   121    (2,210)
Less: Net loss attributable to non-controlling interest   1    1    2    8 
Net (loss) income attributable to Actions Semiconductor Co., Ltd. Shareholders   (825)   (1,655)   123    (2,202)
                     
Basic (per share)   (0.002)   (0.004)   0.000    (0.005)
                     
Diluted (per share)   (0.002)   (0.004)   0.000    (0.005)
                     
Basic (per ADS)   (0.012)   (0.024)   0.002    (0.032)
Diluted (per ADS)   (0.012)   (0.024)   0.002    (0.032)
                     
Weighted-average shares used in computation:                    
Basic   412,162,575    410,209,703    412,103,255    412,706,341 
Diluted   412,162,575    410,209,703    425,415,011    412,706,341 
                     
Weighted-average ADS used in computation :                    
Basic   68,693,763    68,368,284    68,683,876    68,784,390 
Diluted   68,693,763    68,368,284    70,902,502    68,784,390 
                     
Note: Share-based compensation recorded in each                    
expense classification above is as follows:                    
  Research and development   74    229    347    1,090 
  General and administrative   25    67    79    312 
  Selling and marketing   3    12    17    52 
  Cost of revenues   0    0    49    10 

  

 
 

  

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

 

   Three months ended   Year ended   Year ended 
   December 31,   December 31,   December 31, 
   2013   2013   2012 
   (unaudited)   (unaudited)   (audited) 
Operating activities:               
Net (loss) income   (826)   121    (2,210)
Adjustments to reconcile net (loss) income provided by               
  Operating activities:               
  Depreciation of property, plant and equipment   508    2,072    2,290 
  Amortization of land use right   9    36    36 
  Amortization of acquired intangible assets   923    3,480    3,056 
  Utilization of subsidy from local authorities of Zhuhai,
  the People's Republic of China ("PRC")
   (846)   (1,068)   (674)
  Write down of inventories   282    865    180 
  Loss on disposal of property, plant and equipment           5 
  Share of net loss (income) of equity method investees   82    264    (41)
  Share-based compensation   102    492    1,465 
  Fair value change in trading securities           (2)
  Deferred taxes   94    279    454 
  Proceeds from disposal of trading securities           459 
  Dividend income from an other investment       (493)    
  Impairment loss recognised in respect of other investments   681    681    2,543 
  Changes in operating assets and liabilities:               
    Accounts receivable   1,525    195    (3,150)
    Notes receivable   37         
    Amount due from a related party   (1,301)   (961)   (331)
    Inventories   5,062    (8,686)   (4,510)
    Amount due from an equity method investee   37    41    (14)
    Prepaid expenses and other current assets   (930)   5,922    (2,549)
    Accounts payable   (330)   (2,198)   3,598 
    Accrued expenses and other current liabilities   348    (3,051)   (3,526)
    Income tax recoverable   13    123    (189)
    Income tax payable   1    2    (190)
    Rental deposit received (paid)   5    (11)   4 
Net cash provided by (used in) operating activities   5,476    (1,895)   (3,296)
                
Investing activities:               
  Investment in an equity method investee       (3,712)   (1,500)
  Proceeds from redemption of marketable securities   13,434    112,966    178,975 
  Purchase of marketable securities   (30,529)   (113,329)   (132,376)
  Proceeds from disposal of property, plant and equipment   25    41    22 
  Purchase of property, plant and equipment   (340)   (862)   (249)
  Purchase of intangible assets   (1,199)   (3,884)   (1,081)
  Deposit paid for acquisition of intangible assets   (145)   (904)    
  Increase in time deposits   (5,960)   (17,159)   (10,000)
Net cash (used in) provided by investing activities   (24,714)   (26,843)   33,791 
                
Financing activities:               
  Proceeds from short-term bank loans   5,000    10,000    8,500 
  Advance subsidy from local authorities of Zhuhai, the PRC   412    714    299 
  Proceeds from exercise of share option and restricted stock unit   471    3,041    2,289 
  Repurchase of ordinary shares   (1,845)   (4,853)   (4,152)
Net cash provided by financing activities   4,038    8,902    6,936 
                
Net (decrease) increase in cash and cash equivalents   (15,200)   (19,836)   37,431 
                
Cash and cash equivalents at the beginning of the period   67,884    71,336    33,207 
                
Effect of exchange rate changes on cash   579    1,763    698 
Cash and cash equivalents at the end of the period   53,263    53,263    71,336