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Actions Semiconductor Reports Fourth Quarter and Full Year 2007 Results
Monday January 28, 4:15 pm ET


ZHUHAI, China, Jan. 28 /Xinhua-PRNewswire/ -- Actions Semiconductor Co., Ltd. (Nasdaq: ACTS - News), 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 financial results for the fourth quarter and year ended December 31, 2007.
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All financial results are reported on a U.S. GAAP basis.

Revenue for the fourth quarter of 2007 was $32.3 million, a 20% increase over revenue of $27.0 million for the third quarter of 2007, and a 35% decrease from revenue of $49.5 million for the fourth quarter of 2006. Revenue for the year ended December 31, 2007 was $116.6 million, a 32% decrease from revenue of $170.2 million for the year ended December 31, 2006.

Net income for the fourth quarter of 2007 was $19.4 million, or $0.23 per ADS, compared to $10.3 million, or $0.12 per ADS for the third quarter of 2007, and compared to $21.3 million, or $0.25 per ADS for the fourth quarter of 2006. Included in net income for the fourth quarter of 2007 was a $5.9 million tax refund, or $0.07 per ADS, resulting from a tax refund relating to a program Zhuhai Municipal Tax Bureau formed to encourage local business development of Foreign Invested Enterprises. Net income for the full year of 2007 was $52.2 million, compared to $74.6 million reported for the full year 2006. Net income per ADS was $0.61 for 2007, compared to the $0.87 per ADS reported for the full year 2006.

Actions Semiconductor reported operating margin of 32.9% and gross margin of 52.9% for the fourth quarter of 2007. For the full year of 2007, operating margin was 30.3%, and gross margin was 51.2%. The Company ended the year with $241.8 million in cash and cash equivalents together with time deposits, restricted cash and short-term marketable securities.

"We were pleased to finish 2007 with solid results for the fourth quarter," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "Excluding the tax refund, both revenue and net income were in line with our expectations for the fourth quarter. Additionally, both operating and gross margins improved sequentially as a result of our cost migration and expense management programs. "

"During 2007 we laid the foundation for the next phase of the company's development. We focused on improving our business fundamentals by maintaining our solid financial position, strengthening our engineering team, expanding our product offering, and targeting new markets internationally. With a complete product mix and an enhanced team in place, we believe we are better positioned to continue our long-term growth strategy," concluded Mr. Yeh.

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 quarter ended March 31, 2008, Actions Semiconductor estimates revenue in the range of $20 to $23 million, and, fully diluted earnings per ADS of $0.06 to $0.08.