Actions Semiconductor reported its financial results for the second quarter ended June 30, 2015. Q2 revenue for the second quarter of 2015 was $13.7 million, compared t $10.5 million for Q1 2015, and $12 million for Q2 2014.
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All financial results are reported on a U.S. GAAP basis.
Gross profit was $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 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 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. ■