Actions Semiconductor reported its financial results for the fourth quarter and full year ended December 31, 2015.
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Revenue for the fourth quarter of 2015 was $11.9 million, as compared to revenue of $13 million for the third quarter of 2015, and $13.9 million for the fourth quarter of 2014.
Actions Semiconductor reported gross profit in the fourth quarter of $1.3 million, as compared with $3.5 million in the third quarter of 2015 and a gross loss of $2.7 million in the fourth quarter of 2014.
Gross margin was 11.1% for the fourth quarter of 2015, compared to gross margin of 26.6% for the third quarter of 2015, and negative 19.2% for the fourth quarter of 2014.
The quarter-over-quarter decrease in gross margin was primarily the result of a write-down of certain slower moving inventory which reduced gross margin by about 9%. In the year ago period the company recorded a significant inventory write-down that reduced gross margin by nearly 30%.
Operating expenses in the fourth quarter of 2015 were $9.1 million, as compared to $16.4 million in the third quarter of 2015 and $10.9 million in the fourth quarter of 2014.
Research and development expenses were $6.4 million for the fourth quarter, as compared to $8.3 million in the third quarter of 2015 and $7.1 million in the fourth quarter of 2014. The quarter-over-quarter and year-over-year decreases were mainly due to higher mask expenses in each of the comparable periods.
General and administrative expenses were $2.3 million in the fourth quarter, as compared to $3.1 million in the third quarter of 2015 and $2.7 million in the fourth quarter of 2014.
Actions Semiconductor recorded $0.6 million in expenses related to its Dutch auction tender offer in the third quarter of 2015.
Selling and marketing expenses were $0.5 million for the fourth quarter, as compared to $0.5 million in the third quarter of 2015 and $0.6 million in the fourth quarter of 2014.
Impairment of intangible assets was nil for the fourth quarter, as compared to $4.5 million in the third quarter of 2015 and $0.5 million in the fourth quarter of 2014.
Operating loss for the fourth quarter of 2015 was $6.5 million, as compared to the operating loss of $12.0 million in the third quarter of 2015 and the operating loss of $13.3 million in the fourth quarter of 2014.
Other expense for the fourth quarter of 2015 was $1.3 million, due to an unrealized, non-cash foreign exchange loss associated with the depreciation of the Chinese RMB against the U.S. dollar, compared to other expense of $1.8 million in the third quarter of 2015 and other expense of $1.1 million in the fourth quarter of 2014.
Interest income for the fourth quarter of 2015 was $1.1 million, down from $1.3 million in the third quarter of 2015 and down from $1.7 million in the fourth quarter of 2014.
The year-over-year and quarter-over-quarter decreases were due to lower cash and interest bearing securities following Dutch auction tender offers in September 2015 and 2014.
Income tax credit was $0.2 million for the fourth quarter of 2015, compared to income tax expense of $0.1 million in the third quarter of 2015 and an income tax credit of $0.3 million in the fourth quarter of 2014.
Net loss attributable to Actions Semiconductor's shareholders for the fourth quarter of 2015 was $7.2 million or $0.162 per basic and diluted American Depositary Share (ADS).
This compares to net loss attributable to Actions Semiconductor's shareholders of $12.6 million or $0.217 per basic and diluted ADS, for the third quarter of 2015, and net loss attributable to Actions Semiconductor's shareholders of $12.2 million or $0.206 per basic and diluted ADS, for the fourth quarter of 2014.
Full year 2015 results
Revenue for 2015 was $49.1 million, as compared to revenue of $50.3 million for 2014.
Gross profit for 2015 was $10.8 million, as compared with $4.1 million in 2014. Gross margin was 21.9% for 2015, compared to gross margin of 8.1% for 2014.
The year-over-year increase in gross margin was primarily the result of significant write-downs of inventory in 2014 that reduced gross margin by approximately 12%.
Operating expenses in 2015 were $45.1 million, as compared to $44.4 million in 2014.
Research and development expenses were $28.8 million for 2015, as compared to $31.1 million in 2014. The year-over-year decrease was mainly due to higher mask expenses in 2014. Actions Semiconductor expects full year R&D expenses in 2016 to be below 2015 levels.
General and administrative expenses were $9.6 million in 2015, as compared to $10.3 million in 2014. Actions Semiconductor recorded expenses related to its Dutch auction tender offer in the third quarters of 2015 and 2014 of $0.6 million and $0.5 million, respectively.
Selling and marketing expenses were $2.2 million for 2015, as compared to $2.2 million in 2014.
Impairment of intangible assets for 2015 was $4.5 million, as compared to $0.8 million for 2014.
In Q3, the company recorded an impairment of certain intangible assets based on management's best estimates of the market conditions for tablets and OTT set-top boxes over the remaining useful life of these assets.
Operating loss for 2015 was $30.5 million, as compared to the operating loss of $39.5 million in 2014.
Other expense for 2015 was $3.0 million, as compared to other expense of $2.7 million in 2014.
Interest income for 2015 was $5.7 million, down from $9.6 million in 2014. The year-over-year decrease was due to lower cash and interest bearing securities following Dutch auction tender offers in September 2015 and 2014.
Income tax credit was $0.2 million for 2015, compared to income tax credit of $1.8 million in 2014.
Net loss attributable to Actions Semiconductor's shareholders for 2015 was $28.4 million or $0.518 per basic and diluted ADS.
his compares to net loss attributable to Actions Semiconductor's shareholders of $30.4 million, or $0.461 per basic and diluted ADS, for 2014. ■