Investor Presentation December 2009 Safe Harbor Statement - - PowerPoint PPT Presentation

investor presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation December 2009 Safe Harbor Statement - - PowerPoint PPT Presentation

Investor Presentation December 2009 Safe Harbor Statement Statements contained in this presentation that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.


slide-1
SLIDE 1

Investor Presentation

December 2009

slide-2
SLIDE 2

Safe Harbor Statement

Statements contained in this presentation 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

  • f our products; consumer demand; worldwide economic and political conditions; fluctuations in our costs to manufacture
  • ur 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.

slide-3
SLIDE 3

Actions – Investment Highlights

  • Market Leader in PMP SoC

– Solid business model during economic crisis – Continue to gain market share – Poised for next growth by leveraging CE core competencies, new applications, and M&A – Invested in R&D to build out a world-class mixed signal team

  • High Potential in International Markets, Additional Applications

– Recession-proof applications in gifts and automotive for unit growth – Rapid penetration in emerging Markets – Promising partnerships in the US (Digital Blue/Disney, Coby)

  • Strong Financials

− Positive cash flow with over $254M net cash ($3.30/ADS) − Prudent cash management − Aggressive share repurchase program

slide-4
SLIDE 4

Key Drivers for Future PMP Growth

Diversified digital content drive demand for portable devices

India China Brazil Russia

Large untapped potential in Emerging Markets Proliferation of gifts, automotive, GPS, & PMP applications helping drive unit sales

Wireless Gaming Gift GPS

slide-5
SLIDE 5

Non-Apple Market Strength and Potential

20 40 60 80 100 120 140 160 2007 2008 2009(F)

Gift& Automotive Mono Display Color Display MP4 Segment 137 145 (units mm)

  • 60% market share in color

display segments

  • 40% market share in mono

display segments

  • Complete and competitive

product portfolio

Strength

  • Wide applications in gift,

automotive & MP4 drive unit increase

  • Rapid growth in emerging

Markets (BRIC)

Potential

Non-Apple Market Shipments by Segment

142

Source: Company estimates ≥ 3.5’’ 2.4~ 3.5’’

slide-6
SLIDE 6

Actions-Centric Position in Value Chain

Foundry

Hejian Technology

Assembly & Test

SPIL

Software Design Houses

Dozens of China-Based designers

Manufacturers

100’s of China-based players (ShenZhen Inc.)

Customers

Global & Regional OEMs – Newman – Onda – Unibit – Aigo – Disney – iRiver – Coby – LG

  • Importers

VARs

30+ China focus resellers

  • GMI
  • WPI
  • Uppo
  • 900+

Actions- focused application developers

Upstream Partnerships

  • Cost Advantage

Downstream Development Ecosystem

  • Better Time to Market and Pricing Power
slide-7
SLIDE 7

Complete MP3 Portfolio & Roadmap

Music Only Mono Display Color Display 2009 2010 2011

  • Automotive
slide-8
SLIDE 8

HD (1080P) HD (720P) D1 Resolution 2009 2010 2011

  • !
  • !
  • QVGA
  • !

Expanding MP4 Advanced Platform

slide-9
SLIDE 9

Recent Developments & Strong Financials

  • Healthy Financial Position

– Over $254 million in net cash, with positive cash flow since IPO – Low risk asset allocation: 80% cash in RMB, highly liquidated, principle-guaranteed by China’s state-owed financial institutes

  • Worldwide Market Development

– Partnership with major local firms for German and Taiwanese markets – Series 13 featured in Coby’s PMP products for US mainstream demand – Partnership with Disney’s Digital Blue for US gift market

  • Continued Cost Down by Technology Migration

– Recently introduced new Series 2, 3, and Automotive products – Rolled out cost-down versions of low-end and advanced product lines in Q3 – Further cost down from 0.16um to 0.15um & 0.11um in 2009

  • M&A Activities

– Focus on synergy creation to closely align with our core in CE

slide-10
SLIDE 10

Share Repurchase Program

  • Major Progress

– As of September 30, 2009, 9.8 million ADSs were repurchased – Board authorized up to 20 million ADSs through December 31, 2010

  • Top Priority for the Company

– Create long-term shareholder value – Open to all possible approaches to optimize long term buyback costs

slide-11
SLIDE 11

Solid Balance Sheet

(US$ Million) 30 Sep’09 30 Jun’09 Total assets 296.2 301.1 Shareholders’ equity 282.5 284.2 Net cash * 254.8 259.4 Net cash per share * $3.30 $3.37

* Includes cash & cash equivalents, time deposits, and marketable/trading securities

slide-12
SLIDE 12

Income Statement

(US$ Million) 3Q’09 2Q’09 1Q’09 Revenue $13.4 $10.5 $12.2 Gross profit $4.1 $2.9 $4.1 Gross margin 30.8% 27.7% 33.6% Net profit $(0.6) $(0.8) $(1.5) Net margin (4.5)% (7.4)% (12.2)% Earnings per ADS $(0.01) $(0.01) $(0.02)

slide-13
SLIDE 13

Strategic Initiatives for 2009

Expediting Share Repurchase Managing Cash Prudently Optimizing Market Position Reducing Costs Aggressively Enhancing R&D Capability Ramping New Products Leveraging Strategic Investments

slide-14
SLIDE 14

Thank You