Actions Semiconductor (ACTS), one of China's leading fabless semiconductor companies that provides comprehensive mixed-signal system-on-a-chip
solutions for portable consumer electronics, has reported financial results for the third quarter ended September 30, 2006.
Revenue for the third quarter of 2006 was US$45.7 million, a 19.3% increase over revenue of US$38.3 million for the third quarter of 2005, and a 16.3% increase over revenue of US$39.3 million for the second quarter of 2006.
Net income for the third quarter of 2006 was US$20.5 million, or US$0.24 per diluted ADS, compared to US$18.6 million, or US$0.23 per diluted ADS, for the third quarter of 2005, and compared to US$18.1 million, or US$0.21 per diluted ADS, for the second quarter of 2006, resulting in a 13.3% sequential increase in net income.
Actions Semiconductor reported operating margins of 45.2% and gross margins of 56.7% for the third quarter of 2006. The company ended the quarter with US$188.5 million in cash and cash equivalents including US$77.4 million net of proceeds from the secondary offering which are payable to selling shareholders. In addition, Actions closed the quarter with US$72.9 million in time deposits, which have original maturity of more than 3 months but less than 1 year.
"The third quarter was an exciting time for Actions, as we achieved a number of milestones. We delivered record revenues and our shipments were the highest in the company's history," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "We have had excellent customer response to our Series 9 product, and with our solid financial position, we have the resources to build upon this momentum and capitalize on the opportunities in the rapidly expanding personal media player ('PMP') market."
During the third quarter Actions successfully completed its secondary offering, which is an important milestone in the company's strategy to increase trading liquidity to enhance shareholder value.
For the quarter ended December 31, 2006, Actions Semiconductor estimates revenue in the range of US$48 to US$50 million, and fully diluted earnings per ADS in the range of US$0.23 to US$0.26.