ACTS Actions Semiconductor Co., Ltd. ADS, Each Representing Six Ordinary Shares

Company's Share Repurchase Program Extended Through 2009 ZHUHAI, People's Republic of China, Oct. 30 /PRNewswire-FirstCall/ -- 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 financial results for the third quarter ended September 30, 2008. All financial results are reported on a U.S. GAAP basis. Revenue for the third quarter of 2008 was $27.3 million, as compared to revenue of $26.6 million for the second quarter of 2008, and $27.0 million for the third quarter of 2007. Net income for the third quarter of 2008 was $7.4 million, or $0.09 per ADS, compared to $7.7 million, or $0.09 per ADS for the second quarter of 2008, and compared to $10.3 million, or $0.12 per ADS for the third quarter of 2007. Actions Semiconductor reported gross margin of 50.7% and operating margin of 20.9% for the third quarter of 2008. The Company ended the quarter with $53.3 million in cash and cash equivalents together with time deposits. Marketable securities and trading securities at the end of the quarter were $204.9 million. The Company also announced that its board of directors authorized a one-year extension of the share repurchase program for up to eight million of its American Depositary Shares (ADSs) representing 48 million ordinary shares. The extended term of the repurchase program will expire on December 31, 2009. At the end of third quarter, the Company had invested approximately $12.9 million in the program, representing over 3.2 million ADSs. The repurchased shares are used in connection with the Company's employee benefit plans and other general corporate purposes. At the end of the third quarter of 2008, the Company had approximately 83 million outstanding ADSs. The Company may repurchase shares in the open market or through privately negotiated transactions. The timing and actual number of ADSs repurchased will depend upon market conditions and other factors, in accordance with Securities and Exchange Commission requirements. "During the third quarter, we operated under increasingly difficult macroeconomic conditions," commented Nan-Horng Yeh, Chief Executive Officer of Actions Semiconductor. "Despite the challenging market dynamics, sales and gross margin were in line with our expectations for the quarter. We continued to aggressively market our complete product portfolio worldwide and further developed our relationships with brand name and international customers. Our diverse product portfolio has enabled us to protect our leading market position in a sector characterized by intense competition." "We remain dedicated to aggressively managing our business through this difficult time, as we focus on our long-term growth opportunities and tightly manage expenses. Given our strong cash position, we believe we are well equipped to weather this period of economic weakness. We continue to be proud of our management team for their commitment to maintaining profitability, generating strong cash flow and sustaining attractive margin levels," 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 fourth quarter ended December 31, 2008, Actions Semiconductor estimates revenue in the range of $18 to $22 million, and fully diluted earnings per ADS of $0.04 to $0.06. The fourth quarter 2008 estimates include share-based compensation expense in the range of $0.9 to $1.0 million. Conference Call Details Actions Semiconductor's third quarter teleconference and webcast is scheduled to begin at 5:30 p.m. Eastern Time, on Thursday, October 30, 2008. To participate in the live call, analysts and investors should dial 866-383-8119 (within U.S.) or 617-597-5344 (outside U.S.) and enter passcode 54017534 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 http://www.actions-semi.com/. An audio replay of the call will be available to investors through November 6, 2008, by dialing 888-286-8010 (within U.S.) or 617-801-6888 (outside U.S.) and entering the passcode 52920202. About Actions Semiconductor Actions Semiconductor is one of China's leading fabless semiconductor companies that provides mixed-signal and multimedia 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 and the providers of those 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, Beijing and Shenzhen. 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. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause Actions Semiconductor's actual results to differ materially from our current expectations. Factors that could cause Actions Semiconductor's results to differ materially from those set forth in these forward-looking statements include 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. Actions Semiconductor undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances. ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED BALANCE SHEET (in thousands of U.S. dollars) At September 30, At June 30, At December 31, 2008 2008 2007 (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents 53,286 126,745 72,054 Time deposits 62 266 2,613 Restricted cash 6,860 775 1,782 Marketable securities 195,565 139,973 165,317 Trading securities 9,339 - - Accounts receivable, net 8,885 5,674 6,046 Notes receivable 206 194 372 Inventories 7,992 7,400 12,542 Prepaid expenses and other current assets 2,463 2,659 2,479 Deferred tax assets 996 902 739 Total current assets 285,654 284,588 263,944 Other investments 7,338 7,330 7,760 Rental deposits 87 86 79 Property, plant and equipment, net 7,221 6,683 6,436 Land use right 1,596 1,589 1,509 Acquired intangible assets, net 4,782 5,510 5,849 Deposit paid for acquisition of property, plant and equipment 35 - 27 Deposit paid to establish an investment 10,239 - - Deferred tax assets 220 233 - TOTAL ASSETS 317,172 306,019 285,604 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 7,268 8,318 12,334 Accrued expenses and other current liabilities 12,101 6,946 9,435 Other liabilities 1,046 496 884 Loan from minority shareholder 1,500 1,500 - Short-term bank loan - - 1,519 Income tax payable 556 565 749 Deferred tax liabilities 176 82 - Total current liabilities 22,647 17,907 24,921 Other liabilities 294 729 686 Deferred tax liabilities 1,391 917 - Total liabilities 24,332 19,553 25,607 Minority interest 140 174 204 Shareholders' equity: Ordinary shares 1 1 1 Additional paid-in capital 38,784 41,592 43,679 Accumulated other comprehensive income 21,496 19,680 9,628 Retained earnings 232,419 225,019 206,485 Total shareholders' equity 292,700 286,292 259,793 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 317,172 306,019 285,604 ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED INCOME STATEMENT (in thousands of U.S. dollars, except per share amounts) Three months Three months Nine months Nine months ended ended ended ended September 30, September 30, September 30, September 30, 2008 2007 2008 2007 (unaudited) (unaudited) (unaudited) (unaudited) Revenues 27,298 27,043 79,077 84,297 Cost of revenues (13,455) (13,024) (38,546) (41,700) Gross profit 13,843 14,019 40,531 42,597 Other operating income 59 8 636 380 Operating expenses: Research and development (4,842) (3,681) (14,430) (8,938) General and administrative (2,932) (2,837) (7,653) (8,105) Selling and marketing (419) (470) (1,245) (1,222) Total operating expenses (8,193) (6,988) (23,328) (18,265) Income from operations 5,709 7,039 17,839 24,712 Other income(expense) (784) 1,757 1,628 4,398 Dividend income 20 - 20 - Fair value change in trading securities 48 - 48 - Interest income 3,421 1,695 8,766 5,189 Interest expense - (20) (4) (62) Income before income taxes, equity in net income(loss) of an affiliate and minority interests 8,414 10,471 28,297 34,237 Income tax (1,048) (305) (2,424) (1,705) Equity in net income(loss) of an affiliate - 67 - 103 Minority interests 34 53 61 145 Net income 7,400 10,286 25,934 32,780 Net income per share: Basic and diluted per share: 0.01 0.02 0.05 0.06 Basic and diluted (per ADS) 0.09 0.12 0.31 0.38 Weighted-average shares used in computation: Basic and diluted 501,332,494 512,972,522 505,195,617 514,866,876 Weighted-average ADS used in computation: Basic and diluted 83,555,416 85,495,420 84,199,270 85,811,146 Note: Stock-based compensation recorded in each expense classification above is as follows: Cost of revenues 46 - 66 - Research and development 573 - 821 - General and administrative 272 - 389 - Selling and marketing 52 - 75 - ACTIONS SEMICONDUCTOR CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars) Three months Nine months Nine months ended ended ended September September September 30, 2008 30, 2008 30, 2007 (unaudited) (unaudited) (unaudited) Operating activities: Net income 7,400 25,934 32,780 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, plant and equipment 525 1,518 1,167 Amortization of acquired intangible assets 870 2,444 1,621 Loss on disposal of property, plant and equipment 1 63 317 Gain on disposal of intangible assets - - (18) Gain on disposal of other investment - (6) - Dividend income (20) (20) - Fair value of the stock options 943 1,351 - Minority interests (34) (64) (146) Equity in net loss of an affiliate - - (103) Fair value change in trading securities (48) (48) - Changes in operating assets and liabilities: Accounts receivable (3,206) (2,834) (913) Notes receivable (10) 183 1,200 Inventories (521) 5,274 (4,556) Prepaid expenses and other current assets 217 681 3,375 Amount due from an affiliate - 52 67 Accounts payable (1,134) (5,799) (8,822) Accrued expenses and other current liabilities 4,936 (497) (4,544) Income tax payable (15) (244) (1,716) Rental deposits - (3) 8 Deferred taxes 495 1,100 20 Net cash provided by operating activities 10,399 29,085 19,737 Investing activities: Dividend from other investment 20 20 - Deposit paid to establish an investment (10,239) (10,239) - Increase in other investment (50) (165) (3,937) Proceeds from disposal of property, plant and equipment 18 18 39 Proceeds from disposal of intangible assets - - 64 Increase in marketable securities (54,166) (19,023) (74,942) Purchase of trading securities (26,402) (26,402) - Proceeds from disposal of trading securities 17,111 17,111 - Purchase of property, plant and equipment (1,049) (1,906) (2,356) Purchase of intangible assets (369) (977) (3,999) Increase in restricted cash (6,077) (4,998) (2,997) Decrease in time deposits 206 2,690 32,314 Cash used in investing activities (80,997) (43,871) (55,814) Financing activities: Proceeds from short-term bank loans - - 1,431 Repayment of short-term bank loans - (1,580) - Proceeds from loan from minority shareholder - 1,500 (10) Advance subsidy from local authorities of Zhuhai, the PRC 104 (334) 182 Repurchase of ordinary shares (3,751) (6,246) (3,808) Cash used in financing activities (3,647) (6,660) (2,205) Effect of exchange rate changes on cash 786 2,678 1,601 Net decrease in cash and cash equivalents (73,459) (18,768) (36,681) Cash and cash equivalents at the beginning of the period 126,745 72,054 137,778 Cash and cash equivalents at the end of the period 53,286 53,286 101,097 DATASOURCE: Actions Semiconductor Co., Ltd. CONTACT: Investors, Lisa Laukkanen of The Blueshirt Group, +1-415-217-4967, , for Actions Semiconductor Co., Ltd.; or Ernie Huang, Investor Relations of Actions Semiconductor, +86 756 3392353, ext. 1095, Web site: http://www.actions-semi.com/

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