ZHUHAI, China — 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 first quarter ended March 31, 2011.
All financial results are reported on a U.S. GAAP basis. Revenue for the first quarter of 2011 was $9.4 million, as compared to revenue of $10.7 million for the fourth quarter of 2010, and $7.9 million for the first quarter of 2010.
Net income attributable to Actions Semiconductor's shareholders for the first quarter of 2011 was $5,000 or $0.00 per ADS. This compares to a net loss attributable to Actions Semiconductor's shareholders of $152,000 or $0.00 per ADS, for the fourth quarter of 2010, and a net loss attributable to Actions Semiconductor's shareholders of $874,000 or $0.01 per ADS, for the first quarter of 2010.
Actions Semiconductor reported gross margin of 39.1% for the first quarter of 2011, as compared to gross margin of 37.1% for the fourth quarter of 2010, and 39.6% for the first quarter of 2010. The Company ended the first quarter of 2011 with $111.9 million in cash and cash equivalents. Trading securities and marketable securities, current and non-current, were $106.6 million at the end of the first quarter. Since the share repurchase programs commenced in 2007, the Company has invested approximately $38.5 million in repurchasing its shares. As of March 31, 2011, approximately 16.3 million American Depositary Shares (ADSs) were repurchased.
“Our better than expected sales in the first quarter were driven by strong demand across our products lines, with particular strength in products targeting the automotive, boom box, gaming, and high-end MP4 markets,” stated Mr. Niccolo Chen, CEO of Actions Semiconductor. “We continue to enjoy leading market share in key market segments such as small color display MP3, QVGA MP4, and D1 PMP with gaming functions, and we are increasing our market share in fast growing newer market segments such as automotive, boom box, HD PMP, and HD gaming. We are pleased to see increased interest in our boom box products which are successfully penetrating larger brand name customers in China. In the high end market segments, we are continuing to develop products, including the newly launched Series 28 HD 1080P, which distinguishes Actions by offering differentiating features and cost competitive total solutions. We are encouraged by the current market trends.”
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 second quarter of fiscal year 2011 ending June 30, 2011, Actions Semiconductor estimates revenue in the range of $10.0 to $11.0 million, gross margin will be approximately 40% and operating expenses higher on a sequential basis. The second quarter 2011 estimates include share-based compensation of approximately $0.5 million.
Conference Call Details
Actions Semiconductor's first quarter 2011 teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Tuesday, May 10, 2011. To participate in the live call, analysts and investors should dial 877-941-1428 (within U.S.) or 480-629-9665 (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 May 20, 2011 by dialing 800-406-7325.