Third Quarter Revenue Up 6.9% Year-Over-Year(PRNewswire) —
ZHUHAI, China, Nov. 6, 2013 /PRNewswire/ -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS), 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 third quarter ended September 30, 2013.
All financial results are reported on a U.S. GAAP basis.
Revenue for the third quarter of 2013 was $16.9 million, as compared to revenue of $18.5 million for the second quarter of 2013, and $15.8 million for the third quarter of 2012.
Net loss attributable to Actions Semiconductor's shareholders for the third quarter of 2013 was $0.2 million or $0.002 per basic and diluted American Depositary Share ("ADS"). This compares to net income attributable to Actions Semiconductor's shareholders of $0.7 million or $0.01 per basic and diluted ADS, for the second quarter of 2013, and net income attributable to Actions Semiconductor's shareholders of $0.7 million or $0.01 per basic ADS and $0.009 per diluted ADS, for the third quarter of 2012.
Actions Semiconductor reported gross margin of 33.2% for the third quarter of 2013, compared to gross margin of 32.2% for the second quarter of 2013, and 37.6% for the third quarter of 2012. The Company ended the third quarter with $215.7 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities.
Since the share repurchase program commenced in 2007, the Company has invested approximately $48.6 million in repurchasing its shares. As of September 30, 2013, approximately 21.4 million American Depositary Shares (ADSs) were repurchased.
"Our third quarter results were impacted by lower than expected overall demand for white-box tablets, significant DRAM price increases and slower than anticipated adoption of quad-core solutions in overseas markets, resulting in a sequential decline in revenue and a net loss for the quarter," stated Dr. Zhenyu Zhou, CEO of Actions Semiconductor.
"Although overall adoption of quad-core solutions has been slower than originally anticipated in overseas markets, we believe this only a temporary delay due to issues such as higher DRAM prices and are confident the migration from dual-core to quad-core chipsets will dominate the mid to high end of the tablet market in 2014. In the meantime, our dual-core ATM7021 solution is rapidly gaining traction in the low end of the market at the expense of single-core CPU based SoC. In our traditional portable audio and portable video multimedia business, we saw a sequential increase in shipments of audio products and our extended line of high definition video products inspired by our high definition portable media player continued to make a large contribution to our revenue mix."
"With the recent introduction of our new high performance quad-core ATM7039 chipset, we have completed the OWL series product family as planned. We are now armed with a complete product portfolio targeting the full spectrum of the tablet market from low to high end. We will continue to develop new solutions to meet the needs of the whitebox tablet market along with differentiated traditional portable audio and portable video multimedia products to diversify our revenue stream. We are on track to achieve our revenue growth target of at least 25% for the full year 2013 and expect to further penetrate the mobile Internet enabled multimedia market in 2014 and beyond."
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 fourth quarter of 2013 to be higher than the third quarter of 2013, which is contrary to the company's historical seasonal sales pattern.
For the fourth quarter of fiscal year 2013 ending December 31, 2013, Actions Semiconductor estimates revenue in the range of $17.0 to $19.0 million.
Conference Call Details
Actions Semiconductor's third quarter of fiscal year 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Wednesday, November 6, 2013. To participate in the live call, analysts and investors should dial 877-941-1465 (within U.S.) or 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 November 16, 2013 by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering access code 4646989.
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, gross margin, operating expenses and share-based compensation expense. 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.