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.
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.