Actions Semiconductor Reports Fourth Quarter and Full Year 2009 Results

ZHUHAI, China, Feb. 3 — (PRNewswire) — 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 its financial results for the fourth quarter and fiscal year ended December 31, 2009.

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

Revenue for the fourth quarter of 2009 was $7.9 million, as compared to revenue of $13.4 million for the third quarter of 2009, and $16.1 million for the fourth quarter of 2008. Revenue for the year ended December 31, 2009 was $44.1 million, compared to revenue of $95.1 million for the year ended December 31, 2008.

Net loss attributable to Actions Semiconductor shareholders for the fourth quarter of 2009 was $1.1 million, or ($0.02) per ADS, compared to net loss attributable to Actions Semiconductor shareholders of $0.6 million, or ($0.01) per ADS, for the third quarter of 2009, and net income attributable to Actions Semiconductor shareholders of $0.5 million, or $0.01 per ADS, for the fourth quarter of 2008. Net loss for the full year of 2009 was $4.0 million, compared to net income of $26.1 million reported for the full year 2008. Net loss per ADS was ($0.05) for 2009, compared to net income per ADS of $0.31 reported for the full year 2008.

Actions Semiconductor reported gross margin of 34.9% for the fourth quarter of 2009. For the full year of 2009, gross margin was 31.6%. The Company ended the year with $87.8 million in cash and cash equivalents together with time deposits. Marketable securities, current and non-current, were $163.8 million at the end of the year.

Since the share repurchase programs started in 2007, the Company has invested approximately $26.2 million in repurchasing its shares. As of December 31, 2009, approximately 10.9 million American Depositary Shares (ADSs) were repurchased.

"As expected, we did not experience the seasonality typically present in the fourth quarter," stated Mr. Niccolo Chen, CEO of Actions Semiconductor. "However, we are encouraged by the progress we made in a particularly challenging year. Our gross margin improved during the second half of the year and we successfully increased our market share in the low end and advanced product categories of the Portable Media Player ("PMP") market. Throughout the year, we operated through continued retraction of demand in the consumer electronics market, ASP erosion, and an extremely competitive pricing environment. I continue to appreciate our management team's ability to implement successful cost reduction programs and to manage expenses. Despite 2009's challenges, we were pleased to close the year with a strong balance sheet, more diversified business, and improved cost controls.

"We are encouraged to see positive indicators in the sector for next year. The continued proliferation of applications within the PMP market and incremental rebound of overall demand for these products should drive growth in the market. We believe that our commitment to investing in R&D throughout the downturn has positioned Actions to capture some upside from these trends. Our unique positioning has enabled us to leverage our sector leadership, innovative functionality offerings, and dynamic business model to gain traction in new markets and to continue to pursue our long-term growth strategy," concluded Mr. Chen.

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 first quarter of fiscal year 2010 ending March 31, 2010, Actions Semiconductor estimates revenue in the range of $6.5 to $7.5 million, gross margin of approximately 35%, and operating expenses slightly higher on a sequential basis. The first quarter 2010 estimates include share-based compensation expense in the range of $0.9 to $1.0 million.

Conference Call Details

Actions Semiconductor's fourth quarter and fiscal year 2009 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Wednesday, February 3, 2010. To participate in the live call, analysts and investors should dial 877-941-2321 (within U.S.) or +1-480-629-9714 (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 http://www.actions-semi.com . An audio replay of the call will be available to investors through February 5, 2010, by dialing 800-406-7325 (within U.S.) or +1-303-590-3030 (outside U.S.) and entering the passcode 4202663.

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, 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. 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 further information, please contact:

    Investor Relations at Actions Semiconductor
     Edward Chen
     Tel:   +86-756-3392353 x1110
     Email: edward@actions-semi.com

    The Blueshirt Group
     Lisa Laukkanen
     Tel:   +1-415-217-4967
     Email: lisa@blueshirtgroup.com




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

                                         At  December  At  September  At  December
                                                                                        31,  2009        30,  2009        31,  2008
                                                                                    (unaudited)  (unaudited)      (audited)
        ASSETS
        Current  assets:
            Cash  and  cash  equivalents                              87,706            43,001            45,435
            Time  deposits                                                              62                    62                    61
            Restricted  cash                                                          --                    40                  440
            Marketable  securities                                    139,984          158,682          201,151
            Trading  securities                                                    --                    --            19,299
            Accounts  receivable,  net                                  1,891              2,798              2,435
            Amount  due  from  related  parties                        530              2,951              1,497
            Amount  due  from  affiliate                                    492                    --                    --
            Notes  receivable                                                        --                    83                    74
            Inventories                                                            4,501              4,743              8,720
            Prepaid  expenses  and  other  current
              assets                                                                    1,258              1,325              1,532
            Deferred  tax  assets                                                371                  343                  686
        Total  current  assets                                          236,795          214,028          281,330

            Investment  in  equity  method
              investee                                                                4,974              5,276              4,142
            Other  investments                                                6,258              6,158              7,044
            Marketable  securities                                      23,773            53,053                    --
            Rental  deposits                                                          46                    68                    39
            Property,  plant  and  equipment,  net            14,437            12,143              7,144
            Land  use  right                                                      1,546              1,554              1,580
            Acquired  intangible  assets,  net                    3,625              3,544              4,197
            Deposit  paid  for  acquisition  of
              property,  plant  and  equipment                            --                  182                  403
            Deferred  tax  assets                                                149                  163                  206
        TOTAL  ASSETS                                                          291,603          296,169          306,085

        LIABILITIES  AND  SHAREHOLDER'S  EQUITY
        Current  liabilities:
            Accounts  payable                                                  2,355              4,544              4,050
            Accrued  expenses  and  other  current
              liabilities                                                          4,626              3,829              6,846
            Other  liabilities                                                2,124              2,292              1,818
            Loan  from  minority  shareholders                          --                    --              1,500
            Income  tax  payable                                                  129                  162                  221
            Deferred  tax  liabilities                                      284                  416                  480
        Total  current  liabilities                                    9,518            11,243            14,915

        Other  liabilities                                                        319                  366                  249
        Deferred  tax  liabilities                                      2,058              2,091              1,750
        Total  liabilities                                                  11,895            13,700            16,914

        Equity:
        Actions  Semiconductor  Co.  Ltd
          shareholders'  equity:
          Ordinary  shares                                                              1                      1                      1
          Additional  paid-in  capital                              31,423            33,259            36,606
          Accumulated  other  comprehensive
            income                                                                    20,239            20,059            20,483
          Retained  earnings                                              228,045          229,150          232,046
          Total  Actions  Semiconductor  Co.,  Ltd.
            shareholders'  equity                                      279,708          282,469          289,136
          Noncontrolling  interest                                            --                    --                    35
          Total  equity                                                        279,708          282,469          289,171
        TOTAL  LIABILITIES  AND  EQUITY                          291,603          296,169          306,085




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

                                                    Three  months  Three  months
                                                              ended                ended          Year  ended      Year  ended
                                                      December  31,  December  31,  December  31,  December  31,
                                                                2009                  2008                  2009                  2008
                                                        (unaudited)    (unaudited)    (unaudited)    (unaudited)

        Revenues:
            Third-parties:
              System-on-a-chip
                products                                  6,787              10,592              31,482              70,528
              Semiconductor
                product  testing
                services                                        53                      56                    203                    214
                                                                  6,840              10,648              31,685              70,742
            Related-parties:
              System-on-a-chip
                products                                  1,097                5,404              12,455              24,388
            Total  revenues                          7,937              16,052              44,140              95,130
        Cost  of  revenues:
            Third-parties:
              System-on-a-chip
                products                                (4,337)            (5,914)          (21,322)          (35,090)
              Semiconductor
                product  testing
                services                                      (33)                  (44)                (117)                (177)
                                                                (4,370)            (5,958)          (21,439)          (35,267)
            Related-parties:
              System-on-a-chip
                products                                    (800)            (2,921)            (8,771)          (12,158)
            Total  cost  of
              revenues                                  (5,170)            (8,879)          (30,210)          (47,425)
        Gross  profit                                  2,767                7,173              13,930              47,705
        Other  operating  income                  595                    159                    918                    797
        Gain  on  deemed
          disposal                                              --                      --                1,736                      --
        Operating  expenses:
            Research  and
              development                            (4,552)            (5,047)          (19,295)          (19,477)
            General  and
              administrative                      (2,249)            (2,746)            (8,812)          (10,399)
            Selling  and
              marketing                                    (244)                (449)            (1,115)            (1,694)
        Total  operating
          expenses                                      (7,045)            (8,242)          (29,222)          (31,570)
        (Loss)  income  from
          operations                                  (3,683)                (910)          (12,638)            16,932
        Other  income  (expense)                    29                  (414)                (654)              1,213
        Dividend  income                                  20                      --                    440                      20
        Fair  value  change  in
          trading  securities                          --                      44                      40                      92
        Interest  income                            2,679                3,147              10,977              11,912
        Interest  expense                                --                      --                    (57)                    (4)
        Other-than-temporary
          impairment  loss  on
          investments                                        --                      --              (1,010)                    --
        (Loss)  income  before
          income  taxes,  equity
          in  net  loss  of
          an  equity  method
          investee  and
          noncontrolling
          interest                                          (955)              1,867              (2,902)            30,165
        Income  tax  credit
          (expense)                                          152              (1,207)                (537)            (3,632)
        Equity  in  net  loss  of
          an  equity  method
          investee                                          (302)                (216)                (826)                (576)

        Net  (loss)  income                      (1,105)                  444              (4,265)            25,957
        Less:  Net  income
          attributable  to
          noncontrolling
          interest                                              --                    105                    264                    166
        Net  (loss)  income
          attributable  to
          Actions  Semiconductor
          Co.,  Ltd.                                    (1,105)                  549              (4,001)            26,123

        Net  (loss)  income  per
          share-basic  and
          diluted:
        Net  (loss)  income
          attributable  to
          Actions  Semiconductor
          Co.,  Ltd.                                    (0.002)              0.001              (0.009)              0.052

        Basic  and  diluted  (per
          ADS)                                              (0.015)              0.007              (0.052)              0.312

        Weighted-average
          shares  used  in
          computation:
        Basic                                    454,845,873    491,689,408    460,812,477    501,763,805
        Basic  and  diluted            454,845,873    491,689,408    460,812,477    501,763,805

        Weighted-average  ADS
          used  in  computation  :
        Basic                                      75,807,646      81,948,235      76,802,080      83,627,301
        Basic  and  diluted              75,807,646      81,948,235      76,802,080      83,627,301

        Note:  Stock
          compensation  recorded
          in  each  expense
          classification
          above  is  as  follows:
            Cost  of  revenues                            --                      46                      --                    112
            Research  and
              development                                  582                    573                2,475                1,394
            General  and
              administrative                            316                    273                1,335                    662
            Selling  and
              marketing                                        43                      52                    196                    127




                                                ACTIONS  SEMICONDUCTOR  CO.,  LTD.
                                CONSOLIDATED  CONDENSED  STATEMENTS  OF  CASH  FLOWS
                                                  (in  thousands  of  U.S.  dollars)
                                                                                Three  months        Year                Year
                                                                                          ended            ended              ended
                                                                                      December        December        December
                                                                                      31,  2009        31,  2009        31,  2008
                                                                                  (unaudited)  (unaudited)  (unaudited)
        Operating  activities:
        Net  (loss)  income                                                (1,105)          (4,265)          25,957
        Adjustments  to  reconcile  net  (loss)
          income  to  net  cash  provided  by
            (used  in)  operating  activities:
            Depreciation  and  amortization  of
              property,  plant  and  equipment                        516              2,107              2,085
            Allowance  for  doubtful  accounts
              receivable                                                                --                  (56)                496
            Amortization  of  acquired  intangible
              assets                                                                      475              2,833              3,232
            Utilization  of  subsidy  from  local
              authorities  of  Zhuhai,  the
              People's  Republic  of  China  (PRC)                    --                (226)              (602)
            Write  down  of  inventories                                    20                  (16)                901
            (Gain)  loss  on  disposal  of
              property,  plant  and  equipment                            2                    (5)                  70
            Gain  on  disposal  of  other
              investment                                                                --                    --                    (6)
            Equity  in  net  loss  of  an  equity
              method  investee                                                    302                  826                  576
            Share-based  compensation                                    941              4,006              2,295
            Fair  value  change  in  trading
              securities                                                                --                  (40)                (92)
            Deferred  taxes                                                      (178)                484              2,083
            Gain  on  disposal  of  a  subsidiary                      --            (1,736)                  --
            Other-than-temporary  impairment
              loss  on  investments                                              --              1,010                    --
            Changes  in  operating  assets  and
              liabilities:
                Proceeds  from  disposal  of  trading
                  securities                                                            --            30,649            17,111
                Purchase  of  trading  securities                      --          (11,310)        (36,318)
                Accounts  receivable                                          907            (1,305)            2,169
                Amount  due  from  a  related  party              2,421                  967                (554)
                Notes  receivable                                                  83                    74                  315
                Inventories                                                          224              3,462              3,611
              Amount  due  from  an  equity  method
                investee                                                              (492)              (492)                  52
                Prepaid  expenses  and  other
                  current  assets                                                    67                (526)            1,601
                Accounts  payable                                          (2,189)              (301)          (8,999)
                Accrued  expenses  and  other
                  current  liabilities                                      (206)            1,664            (5,522)
                Income  tax  payable                                            (33)                (93)              (576)
                Rental  deposit  paid                                            22                    (7)                  45
        Net  cash  provided  by  operating
          activities                                                              1,777            27,704              9,930

        Investing  activities:
            Increase  in  investment  in  affiliate                --            (1,500)          (3,000)
            Proceeds  from  the  disposal  of  other
              investments                                                              --                    44                    --
            Purchases  of  other  investments                          --                    --            (2,215)
            Decrease  (Increase)  in  marketable
              securities                                                        48,022            37,233          (25,575)
            Proceeds  from  disposal  of  property,
              plant  and  equipment                                                3                    30                    18
            Increase  in  deposit  paid  for
              acquisition  of  property,  plant  and
              equipment                                                                  --            (1,733)              (368)
            Purchase  of  property,  plant  and
              equipment                                                          (1,695)          (6,613)          (2,429)
            Purchase  of  intangible  assets                        (453)          (3,140)          (1,194)
            Decrease  in  restricted  cash                                40                  439              1,389
            Decrease  in  time  deposits                                    --                      7              2,691
            Cash  outflow  from  disposal  of
              subsidiary,  net  of  cash  equivalent
              disposed                                                                    --            (2,707)                  --
        Net  cash  used  in  investing  activities        45,917            22,060          (30,683)

        Financing  activities:
            Repayment  of  short-term  bank  loan                    --                    (2)          (1,580)
            (Recognization)  Advance  subsidy
              from  local  authorities  of  Zhuhai
              and  Shenzhen,  the  PRC                                      (215)                750              1,025
            Proceeds  from  loan  from  minority
              shareholders                                                            --                    --              1,500
            Repurchase  of  ordinary  shares                    (2,777)        (10,130)          (9,368)
            Proceeds  on  issue  of  shares  of
              subsidiary                                                                --              1,885                    --
        Net  cash  used  in  financing  activities        (2,992)          (7,497)          (8,423)

        Net  increase  (decrease)  in  cash  and
          cash  equivalents                                                44,702            42,267          (29,176)

        Cash  and  cash  equivalents  at  the
          beginning  of  the  period                                  43,001            45,435            72,054

        Effect  of  exchange  rate  changes  on
          cash                                                                                  3                      4              2,557
        Cash  and  cash  equivalents  at  the  end
          of  the  period                                                      87,706            87,706            45,435


 

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