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Form 6-K Actions Semiconductor For: Aug 14

August 14, 2015 11:46 AM EDT

 

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 6-K

 

 

 

Report of Foreign Private Issuer

  

 

 

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

 

For the month of August 2015

 

Commission File No. 000-51604

 

 

 

ACTIONS SEMICONDUCTOR CO., LTD.

 

 

 

No. 1, Ke Ji Si Road

Technology Innovation Coast of Hi-Tech Zone, Zhuhai

Guangdong, 519085

The People’s Republic of China

(86-756) 339-2353

  

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨ No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______________________.

 

 

 

 

Actions Semiconductor Co., Ltd. (the “Registrant”) is furnishing under cover of Form 6-K:

 

Press announcement dated August 14, 2015, relating to the Registrant’s financial results for the three months ended June 30, 2015, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

ACTIONS SEMICONDUCTOR CO., LTD.

   
  By: /S/ Nigel Liu
  Name: Nigel Liu
  Title:    Chief Financial Officer

 

Dated: August 14, 2015

 

 

 

 

EXHIBIT INDEX

 

Exhibit   Description
Exhibit 99.1   Press announcement dated August 14, 2015, relating to the Registrant’s financial results for the three months ended June 30, 2015.

 

 

 

 

Exhibit 99.1

 

 

Actions Semiconductor Reports Second Quarter 2015 Results

 

ZHUHAI, China, August 14, 2015 — 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 second quarter ended June 30, 2015.

 

Commenting on the second quarter results, Dr. Zhenyu Zhou, CEO of Actions Semiconductor said, “Revenue in the second quarter came in at the high end of our expectations and we achieved a meaningful improvement in gross margin. Sales of our multimedia products performed well, driven by strong demand for our Bluetooth 4.0 solutions for Bluetooth enabled audio and other related products as well as stronger than anticipated sales of our video boombox solutions and other traditional multimedia products. In our application processor business, conditions in the worldwide tablet market remained challenging, reflecting a maturing market fraught with intense competition. Although demand for smart devices such as virtual reality devices, netbooks, digital signage, POS machines and smart micro-projectors is strong, volumes of our 32-bit and 64-bit smart product SoCs based on 28 nm process technology have ramped more slowly than anticipated due to longer design and qualification times for some of these products.

 

“Looking ahead, we continue to anticipate revenue growth for the full year 2015, but at a slower pace than our previous expectations. Our Bluetooth solutions, led by our new single chip Bluetooth 4.0 SoC for Bluetooth enabled audio and related products are rapidly gaining market share with healthy growth in volume. We will expand our presence in this fast growing market with our upcoming Bluetooth 4.0 headset solution. We remain confident that strong consumer demand will continue to drive adoption of our latest 32-bit and 64-bit chipsets based on 28 nm process technology for smart products such as digital signage, virtual reality devices and netbooks based on popular operating systems. We believe the open source intelligent hardware community will play an important role in the development of diversified smart products in the IoT market, and our new ActDuino 32-bit S500 and ActDuino 64-bit S900 open source SoCs and reference design platforms for Android and Linux target a wide range of leading edge smart connected products,” Dr. Zhou concluded.

 

Second Quarter 2015 Results

 

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

 

Revenue for the second quarter of 2015 was $13.7 million, as compared to revenue of $10.5 million for the first quarter of 2015, and $12.0 million for the second quarter of 2014.

 

Actions Semiconductor reported gross profit in the second quarter of $3.5 million, as compared with $2.5 million in the first quarter of 2015 and $2.2 million in the second quarter of 2014. Gross margin was 25.7% for the second quarter of 2015, compared to gross margin of 23.5% for the first quarter of 2015, and 18.4% for the second quarter of 2014. In the year ago period the Company recorded a write-down of certain slower moving inventory which reduced gross margin by about 7%.

 

Operating expenses in the second quarter of 2015 were $10.1 million, as compared to $9.5 million in the first quarter of 2015 and $10.0 million in the second quarter of 2014.

 

Research and development expenses were $7.3 million for the second quarter, as compared to $6.8 million in the first quarter of 2015 and $6.6 million in the second quarter of 2014. The year-over-year and quarter-over-quarter increases were mainly related to mask expenses associated with OTT set-top box and tablet SoCs. The Company expects full year R&D expenses in 2015 to be below 2014 levels.

 

General and administrative expenses were $2.2 million in the second quarter, as compared to $2.0 million in the first quarter of 2015 and $2.8 million in the second quarter of 2014. The quarter-over-quarter increase was due to normal seasonal fluctuations. The year-over-year decrease was related to a write-off of impaired intangible assets and an increase in consultant fees in the year ago period.

 

 

 

  

Selling and marketing expenses were $0.6 million for the second quarter, as compared to $0.6 million in the first quarter of 2015 and $0.6 million in the second quarter of 2014.

 

Operating loss for the second quarter of 2015 was $5.1 million, as compared to the operating loss of $7.0 million in first quarter of 2015 and the operating loss of $7.7 million in the second quarter of 2014.

 

Dividend income was $0.5 million for the second quarter of 2015, compared to nil for the first quarter of 2015, and $0.4 million for the second quarter of 2014. The quarter-over-quarter increase was due to cash dividends received from a cost-method investee company.

 

Interest income for the second quarter of 2015 was $1.7 million, up from $1.6 million in the first quarter of 2015 and down from $2.8 million in the second quarter of 2014. The year-over-year decrease was due to lower cash and interest bearing securities following the Dutch auction tender offer in September 2014.

 

Income tax expense was $0.5 million for the second quarter of 2015, compared to an income tax credit of $0.5 million in the first quarter of 2015 and an income tax credit of $0.9 million in the second quarter of 2014.

 

Net loss attributable to Actions Semiconductor's shareholders for the second quarter of 2015 was $3.7 million or $0.063 per basic and diluted American Depositary Share ("ADS"). This compares to net loss attributable to Actions Semiconductor's shareholders of $5.0 million or $0.085 per basic and diluted ADS, for the first quarter of 2015, and net loss attributable to Actions Semiconductor’s shareholders of $3.5 million or $0.050 per basic and diluted ADS, for the second quarter of 2014.

 

Financial Condition

 

The Company ended the second quarter of 2015 with $155.7 million in cash and cash equivalents, together with time deposits, trading securities and marketable securities. Total current assets were approximately $184.8 million, and the Company had working capital of approximately $124.8 million and $45.0 million in short-term bank loans as of June 30, 2015. 

 

Since the share repurchase program commenced in 2007, the Company has invested approximately $80.9 million in repurchasing its ADSs and ordinary shares, including $25.0 million representing the equivalent of 10.0 million ADSs repurchased through a Dutch auction tender offer in September 2014. As of June 30, 2015, the equivalent of approximately 34.9 million ADSs were repurchased. As of June 30, 2015, total number of outstanding ordinary shares (including ordinary shares represented by ADSs) was 350,821,721.

 

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.

 

Based on current market trends, the Company expects revenue in the third quarter of 2015 to be in the range of $13.0 to $14.0 million. The Company continues to anticipate revenue growth for the full year 2015 but at a slower pace than previously expected due to declining demand in tablet market and longer than anticipated design and qualification times for SoCs targeting other types of smart devices and hardware.

 

Conference Call Details

 

Actions Semiconductor's management will conduct an earnings conference call offering prepared remarks on the second quarter of fiscal year 2015, new products, business outlook and other matters. Although the management will not be conducting a question and answer session during the call, the Company continues to welcome written questions and comments from its shareholders.

 

The teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time, on Friday, August 14, 2015. To participate in the live call, analysts and investors should dial 1-888-455-2260 (within U.S.) or 1-719-457-2645 (outside U.S.) at least ten minutes prior to the call. The conference ID number is 5696193. Actions Semiconductor will also offer a 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 August 23, 2015 by dialing 1-888-203-1112 (within U.S.) or 1-719-457-0820 (outside U.S.) and entering access code 5696193.

 

 

 

  

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, Shenzhen, Hong Kong and Taipei. 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 Bluetooth single chip 4.0 solutions, 32-bit and 64-bit products enabled by 28nm process technology targeting various smart products, 32-bit and 64-bit open-source SoCs and reference design platforms, the Company’s ability to expand its presence in the Bluetooth market, 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 its new products and Actions Semiconductor's future expectations with respect to revenue. 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.

 

Investor Contacts:  
Elaine Ketchmere, CFA Ally Xie, CA, CPA
Compass Investor Relations Actions Semiconductor
[email protected] [email protected]
+1-310-528-3031 +86-756-3392353*1018

 

 

 

  

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands of U.S. dollars)

 

   At June 30,   At March 31,   At December 31, 
   2015   2015   2014 
   (unaudited)   (unaudited)   (audited) 
ASSETS               
Current assets:               
Cash and cash equivalents   57,350    61,855    78,177 
Time deposit   -    5,632    5 
Restricted deposits   51,667    51,786    51,590 
Marketable securities   46,571    43,035    38,384 
Trading securities   72    72    70 
Accounts receivable, net of allowance for doubtful accounts of $40, $68 and $558 as of June 30, 2015, March 31, 2015 and December 31, 2014, respectively   3,242    2,833    2,832 
Amount due from a related party   1,277    555    1,650 
Notes receivable   -    -    161 
Amount due from an equity method investee   53    48    41 
Inventories, net of inventory written-down of $6,776, $6,942 and $7,718 as of June 30, 2015,  March 31, 2015 and  December 31, 2014, respectively   15,571    14,978    13,970 
Prepaid expenses and other current assets   7,443    5,689    4,511 
Income tax recoverable   154    345    186 
Deferred tax assets   1,432    1,644    1,179 
Total current assets   184,832    188,472    192,756 
                
Investments in equity method investees   27,215    27,323    27,352 
Other investments   15,510    15,627    15,627 
Rental deposits   58    65    54 
Property, plant and equipment, net   29,910    29,929    30,327 
Land use right   1,497    1,505    1,514 
Acquired intangible assets, net   14,537    15,345    16,459 
Deposit paid for acquisition of intangible assets   218    547    538 
Deferred tax assets   45    49    53 
TOTAL ASSETS   273,822    278,862    284,680 
                
LIABILITIES AND EQUITY               
Current liabilities:               
Accounts payable   8,662    6,633    5,790 
Amount due to a related party   133    162    259 
Accrued expenses and other current liabilities   4,690    7,148    8,349 
Short-term bank loans   45,000    45,000    45,000 
Other liabilities   1,065    1,929    1,929 
Income tax payable   49    49    49 
Deferred tax liabilities   429    314    160 
Total current liabilities   60,028    61,235    61,536 
                
Payable for acquisition of intangible assets   155    155    155 
Deferred tax liabilities   832    883    919 
Total liabilities   61,015    62,273    62,610 
                
Equity:               
Ordinary shares   1    1    1 
Additional paid-in capital   63,125    63,051    63,046 
Treasury Stock   (71,275)   (70,964)   (70,479)
Accumulated other comprehensive income   37,074    36,933    36,937 
Retained earnings   183,915    187,601    192,598 
Total Actions Semiconductor Co., Ltd. shareholders' equity   212,840    216,622    222,103 
Non-controlling interest   (33)   (33)   (33)
Total equity   212,807    216,589    222,070 
TOTAL LIABILITIES AND EQUITY   273,822    278,862    284,680 

 

 

 

  

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands of U.S. dollars, except number of shares and per share amounts)

 

   Three months ended   Three months ended   Six months ended   Six months ended 
   June 30,   June 30,   June 30,   June 30, 
   2015   2014   2015   2014 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
                     
Revenues:                    
System-on-a-chip products   13,667    11,948    24,114    23,233 
Semiconductor product testing services   16    27    46    54 
    13,683    11,975    24,160    23,287 
Cost of revenues:                    
System-on-a-chip products   (10,160)   (9,767)   (18,166)   (18,445)
Semiconductor product testing services   (7)   (9)   (18)   (27)
    (10,167)   (9,776)   (18,184)   (18,472)
Gross profit   3,516    2,199    5,976    4,815 
Other operating income   1,526    150    1,586    629 
Operating expenses:                    
Research and development   (7,287)   (6,614)   (14,132)   (13,390)
General and administrative   (2,222)   (2,787)   (4,271)   (4,824)
Selling and marketing   (589)   (634)   (1,183)   (1,018)
Total operating expenses   (10,098)   (10,035)   (19,586)   (19,232)
Loss from operations   (5,056)   (7,686)   (12,024)   (13,788)
Other income (expenses)   79    7    95    (2,497)
Dividend income from an other investment   488    423    488    423 
Other-than-temporary impairment loss on an other investment   (117)   -    (117)   - 
Interest income   1,674    2,803    3,320    5,883 
Interest expense   (170)   (159)   (333)   (296)
Loss before income taxes, equity in net (loss) income of equity method investees and non-controlling interest   (3,102)   (4,612)   (8,571)   (10,275)
Income tax (expense) credit   (474)   941    25    1,106 
Equity in net (loss) income of equity method investees   (110)   204    (137)   207 
Net loss   (3,686)   (3,467)   (8,683)   (8,962)
Add: Net loss attributable to non-controlling interest   -    -    -    - 
Net loss attributable to Actions Semiconductor Co., Ltd. Shareholders   (3,686)   (3,467)   (8,683)   (8,962)
                     
Net loss attributable to Actions Semiconductor Co., Ltd. Shareholders                    
Basic (per share)   (0.011)   (0.008)   (0.025)   (0.022)
Diluted (per share)   (0.011)   (0.008)   (0.025)   (0.022)
                     
Basic (per ADS)   (0.063)   (0.050)   (0.148)   (0.130)
Diluted (per ADS)   (0.063)   (0.050)   (0.148)   (0.130)
                     
Weighted-average shares used in computation:                    
Basic   351,135,694    413,599,856    351,754,379    412,556,305 
Diluted   351,135,694    413,599,856    351,754,379    412,556,305 
                     
Weighted-average ADS used in computation :                    
Basic   58,522,616    68,933,309    58,625,730    68,759,384 
Diluted   58,522,616    68,933,309    58,625,730    68,759,384 
                     
Note: Share-based compensation recorded in each expense classification above is as follows:                    
Research and development   58    3    63    7 
General and administrative   -    2    -    4 
Selling and marketing   7    -    7    - 
Cost of revenues   9    -    9    - 

 

 

 

  

ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

 

   Three months ended   Six months ended   Six months ended 
   June 30,   June 30,   June 30, 
   2015   2015   2014 
   (unaudited)   (unaudited)   (unaudited) 
Operating activities:               
Net Loss   (3,686)   (8,683)   (8,962)
Adjustments to reconcile net loss to net cash provided by               
Operating activities:               
Depreciation of property, plant and equipment   465    940    1,005 
Allowance for doubtful accounts receivable   -    -    185 
Amortization of land use right   10    19    18 
Amortization of acquired intangible assets   1,260    2,488    2,361 
Utilization of subsidy from local authorities of Zhuhai, the People's               
Republic of China (the"PRC")   (1,135)   (1,135)   - 
Gain on disposal of property, plant and equipment   -    -    (3)
Loss on disposal of intangible assets   -    -    415 
Share of net loss (income) of equity method investees   110    137    (207)
Share-based  compensation   74    79    11 
Deferred taxes   282    (61)   (2,989)
Dividend income from an other investment   (488)   (488)   (423)
Other-than-temporary impairment loss on an other investment   117    117    - 
Changes in operating assets and liabilities:               
Accounts receivable   (408)   (409)   352 
Amount due from a related party   (722)   373    564 
Amount due from an equity method investee   (5)   (12)   (5)
Inventories   (580)   (1,588)   (7,423)
Prepaid expenses and other current assets   (1,733)   (2,911)   44 
Accounts payable   2,025    2,858    1,343 
Accrued expenses and other current liabilities   98    (1,116)   (1,380)
Amount due to a related party   (33)   (130)   - 
Income tax recoverable   191    32    (20)
Rental deposit received (paid)   7    (4)   (2)
Notes Receivable   -    161    - 
Net cash used in operating activities   (4,151)   (9,333)   (15,116)
Investing activities:               
Dividend income from an other investment   488    488    - 
Investment in an equity method investee   -    -    (9,016)
Proceeds from redemption of marketable securities   -    -    95,322 
Purchase of marketable securities   (3,491)   (8,140)   (48,394)
Proceeds from disposal of property, plant and equipment   -    -    19 
Purchase of property, plant and equipment   (416)   (492)   (783)
Purchase of intangible assets   (2,677)   (2,788)   (5,279)
Decrease (increase) in restricted deposits   119    (76)   (5,720)
Decrease (increase) in time deposit   5,597    (30)   - 
Deposit paid for acquisition of intangible assets   -    -    (349)
Proceeds from disposal of intangible assets   -    -    24 
Net cash (used in) provided by investing activities   (380)   (11,038)   25,824 
                
Financing activities:               
Advance subsidy from local authorities of Zhuhai, the PRC   269    269    - 
Proceeds from exercise of share based awards   570    717    1,653 
Repurchase of ordinary shares   (881)   (1,513)   (2,589)
Raise of short-term bank loans   -    -    10,000 
Repayment of short-term bank loans   -    -    (11,000)
Net cash used in financing activities   (42)   (527)   (1,936)
                
Net (decrease) increase in cash and cash equivalents   (4,573)   (20,898)   8,772 
                
Cash and cash equivalents at the beginning of the period   61,855    78,177    53,263 
                
Effect of exchange rate changes on cash   68    71    (1,147)
Cash and cash equivalents at the end of the period   57,350    57,350    60,888 

 

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