TAIPEI, Taiwan Actions Semiconductor said sales hit a new high of $45 million in the third quarter, up 19 percent from a year ago and 16 percent quarter on quarter. Sales were driven by demand for its new line of Series 9 personal media player chips, the company said.
PMPs are gaining momentum in China, where Actions has most of its sales, with dozens of different PMP systems seen in retail shops in major cities. Actions also continues to dominate in the non-Apple MP3 player market, especially for low- and mid-end devices sold into China.
Actions shipments of system-on-chip devices topped 7 million per month during the quarter. Actions has shipped more than 50 million chips this year, putting it among the top players for portable media processing SoCs, including those used in MP3 players.
Profit for the third quarter hit an impressive $20.4 million, or 24 cents per diluted ADS. That's a 10 percent increase over last year and 13 percent sequential quarterly growth. Gross and operating margins hit 57 percent and 45 percent, respectively.
In the fourth quarter, Actions predicts revenues of $48 million to $50 million, and fully diluted earnings per ADS in the range of 23 cents to 26 cents, the company said.
Actions also said it hired 51 new engineers last quarter. In addition, it completed a secondary stock offering to increase trading liquidity.