Actions Semiconductor Slips To Loss In Q2; Details Latest Initiatives

(RTTNews) - Actions Semiconductor Co., Ltd. (ACTS) said that net loss attributable to shareholders for the second quarter of 2014 was $3.5 million or $0.050 per American Depositary Share or "ADS", compared to net income of $0.7 million or $0.010 per ADS in the second quarter of 2013.

Revenue for the second quarter was $12.0 million, compared to $18.5 million for the second quarter of 2013.

The company expects revenue in the third quarter of 2014 to be in the range of $13.0 to $15.0 million. The company expects shipments to improve in the second half of 2014, although persistent, fierce competition in the tablet market will cause revenue in the second half of the year to be slightly below year ago levels.

In a separate press release, Actions Semiconductor Co., Ltd. announced that it expects to commence a "Dutch auction" tender offer in August 2014 to purchase for cash up to 60 million of its issued and outstanding ordinary shares, which represents, as of August 10, 2014, approximately 14.6% of Actions Semiconductor's outstanding ordinary shares, $0.000001 par value per share (including Shares represented by "ADSs"), at a purchase price not greater than $7/15 per Share (or $2.80 per ADS) nor less than $5/12 per Share (or $2.50 per ADS).

In addition, Actions Semiconductor issued open letter detailing latest initiatives.

As its business expanded from portable media player or PMPs into tablets, this group structure has become increasingly complicated. As a result, the company said it has decided to streamline its corporate structure both in terms of reporting lines and re-designated several sales and research entities under its principal operating entity, Actions (Zhuhai) Technology Co., Limited.

As competition for talent increases, the company said that its engineers have also requested that their equity incentive plans reflect the performance of their individual departments and projects that they have worked on. Its new corporate structure will allow its management to keep better track of team and individual performance and issue incentives accordingly.

While the company is not entertaining a horizontal merger with a direct competitor at this time, the company stated that its management has been tasked to seek potential strategic alliance partners along the supply chain that will help it expand its sales channels, enhance its technology base and create a larger ecosystem around its platform. Earlier today, it formally established a special committee, comprising solely of independent directors, to monitor and evaluate such options and proposals. Its new group structure that better reflects the purposes and functions of each subsidiary can also facilitate the formation of strategic alliances in the future.

The company said that earlier today its compensation committee approved the establishment of an option plan based on awarding the shares of Actions Technology to its employees. This option plan envisions awarding its employees up to 15% of the equity of Actions Technology over the next five years.