SHANGHAI, Nov. 11, 2013 /PRNewswire-FirstCall/ --
Spreadtrum Communications, Inc. (Nasdaq: SPRD; "Spreadtrum" or the
"Company"), a leading fabless semiconductor provider in
China with advanced technology in
2G, 3G and 4G wireless communications standards, today announced
its unaudited financial results for the third quarter ended
September 30, 2013.
THIRD QUARTER 2013 FINANCIAL SUMMARY:
- Total revenue was US$293.3
million, up 5.6% sequentially and 56.1% year-over-year
(y-o-y).
- Gross profit was US$109.8
million, up 4.7% sequentially and 56.8% y-o-y. Gross margin
was 37.5% compared to 37.8% in the prior quarter and 37.3% in
3Q12.
- Cash flow generated from operations was US$50.7 million, compared with US$47.6 million in the prior quarter and
US$45.7 million in 3Q12.
- GAAP net income was US$35.7
million, up 2.4% sequentially and 53.4% y-o-y.
- GAAP net income per basic and diluted ADS was US$0.71 and US$0.64, respectively, remaining stable from the
prior quarter and up from US$0.50 and
US$0.44, respectively, in 3Q12.
- Non-GAAP net income was US$41.2
million, down 20.5% sequentially and up 40.5% y-o-y.
Non-GAAP net income per diluted ADS was US$0.74, a decrease from US$0.95 in the prior quarter and an increase from
US$0.56 in 3Q12.
THIRD QUARTER 2013 BUSINESS HIGHLIGHTS:
- Achieved a new record in quarterly revenue, with sequential
growth in shipments of both single-core and dual-core smartphone
chipsets;
- Introduced our first WCDMA/HSPA+ smartphone chipset, the
SC7710, now shipping in commercially launched smartphones for the
global market. Passed acceptance test with European operator for
download speeds of 21Mbps;
- Began commercially shipping our quad-core smartphone chipset
supporting both TD-SCDMA and WCDMA/HSPA+ standards;
- Increased shipments of 2.5G feature phone chipsets, achieving
100% Bluetooth and FM attachment rate, and introduced WiFi
connectivity chipsets to the open market.
Commenting on the third quarter 2013 results, Chairman and CEO
Dr. Leo Li said, "In the third
quarter we achieved a new record for revenue with growth in both
single-core and dual-core chipsets for low cost smartphones. We
further expanded our market reach with the launch of our
WCDMA/HSPA+ smartphone chipset for the global market. This chipset
is now shipping in commercially available handsets for China and overseas markets, and has been
qualified by a European operator for download speeds of 21Mbps. We
also began shipments of our quad-core smartphone chipset supporting
both TD-SCDMA and WCDMA/HSPA+ to major handset makers, which is
enabling us to serve higher value smartphone segments. In addition,
our shipments of feature phone chipsets increased, and 100% of our
feature phone chipsets now ship with integrated Bluetooth."
Further commenting on the financial results, Spreadtrum CFO
Shannon Gao added, "In the third
quarter, our gross profit and operating margin continued to improve
with our top-line growth. Our inventory grew sequentially to
support the expansion of our product portfolio to new 2.5G feature
phone chipsets, dual-core and quad-core smartphone chipsets,
WCDMA/HSPA+ and connectivity chipsets, and to prepare for fourth
quarter demand for these and other products."
THIRD QUARTER 2013 FINANCIAL REVIEW:
Revenue
Revenue in 3Q13 totaled US$293.3
million, up 5.6% from US$277.8
million in 2Q13 and up 56.1% from US$187.9 million in 3Q12. In 3Q13, smartphone
products accounted for 73% of chipset revenue, and feature phone,
modem and other products accounted for 27% of chipset revenue. In
2Q13, smartphone products accounted for 75% of chipset revenue, and
feature phone, modem and other products accounted for 25% of
chipset revenue.
Gross Profit and Margin
Gross profit for the quarter was US$109.8
million, up 4.7% from US$104.9
million in 2Q13 and up 56.8% from US$70.1 million in 3Q12. Gross margin for the
quarter was 37.5%, down from 37.8% in 2Q13 and up from 37.3% in
3Q12. Non-GAAP gross margin, adjusted to exclude share-based
compensation expenses, was 37.6%, down from 38.0% in 2Q13 and up
from 37.4% in 3Q12.
Cost of revenue in 3Q13 totaled US$183.5
million, an increase of 6.1% from the previous quarter and
55.7% from 3Q12.
Operating Expense and Margin
The Company's operating margin for the quarter was 13.4%, up
from 12.9% in the previous quarter and remaining the same as 3Q12.
The sequential increase in operating margin was primarily due to
lower research and development (R&D) expenses as a percentage
of revenue. Non-GAAP operating margin, adjusted to exclude
share-based compensation expenses was 15.3% in 3Q13, compared to
19.0% in 2Q13 and 16.6% in 3Q12.
Total operating expenses in 3Q13, including R&D expenses and
selling, general and administrative (SG&A) expenses, were
US$70.5 million, an increase from
US$69.2 million in 2Q13 and
US$44.9 million in 3Q12.
R&D expenses decreased 2.6% sequentially and increased 58.1%
year-over-year to US$57.6 million in
3Q13. The sequential decrease in R&D expenses was primarily due
to a decrease in employee compensation expenses including
share-based compensation and an increase in recognized R&D
subsidies, partially offset by increases in new product development
engineering expenses and depreciation and amortization expenses.
The year-over-year increase in R&D expenses was primarily due
to increases in employee compensation expenses, new product
development engineering expenses and depreciation and amortization
expenses, and a decrease in recognized R&D subsidies.
SG&A expenses increased 28.5% sequentially and 51.2%
year-over-year to US$12.8 million in
3Q13. The sequential increase in SG&A expenses was primarily
due to an increase in professional expenses and legal fees related
to the buy-out deal, partially offset by a decrease in share-based
compensation. The year-over-year increase in SG&A expenses was
primarily due to an increase in employee compensation expenses
including share-based compensation and professional expenses and
legal fees related to the buy-out deal.
Non-Operating Income
In 3Q13, the Company recorded interest income of US$0.8 million, down from US$1.4 million in the previous quarter and from
US$1.5 million in 3Q12. Interest
expense in 3Q13 was US$1.2 million,
up from US$1.0 million in the
previous quarter and from US$1.1
million in 3Q12. Other income (net) in 3Q13 was a loss of
US$0.1 million, compared to a gain of
US$1.5 million in 2Q13 and a loss of
US$0.2 million in 3Q12. Other income
(net) mainly represented net foreign exchange gains and losses.
Net Income
The Company's net income totaled US$35.7
million in 3Q13, compared to US$34.8
million in 2Q13 and US$23.2
million in 3Q12. The sequential increase in net income was
primarily due to the increase in gross profit. Net margin was
12.2%, down from 12.5% in 2Q13 and from 12.4% in 3Q12. Basic and
diluted income per ADS were US$0.71
and US$0.64, respectively, in 3Q13,
compared to US$0.71 and US$0.64, respectively, in 2Q13, and US$0.50 and US$0.44, respectively, in 3Q12.
Excluding share-based compensation expenses, the Company's
non-GAAP net income for 3Q13 was US$41.2
million, down from a non-GAAP net income of US$51.8 million in 2Q13 and up from US$29.3 million in 3Q12. Diluted non-GAAP net
income per ADS in 3Q13 was US$0.74,
compared with US$0.95 per ADS in the
prior quarter and US$0.56 per diluted
ADS in 3Q12.
Balance Sheet and Cash Flow
As of September 30, 2013, the
total balance of cash and cash equivalents and term deposit with
maturity dates over 90 days was US$139.7
million, compared to US$201.7
million as of June 30, 2013.
Restricted cash as of September 30,
2013 was US$188.7 million
including US$113.9 million pledged
for bank loans and US$74.8 million as
security deposit for the buy-out deal. In 3Q13, the Company
generated US$50.7 million in cash
from operating activities and used US$33.3
million on intangible assets, US$5.2
million on property and equipment and US$1.0 million on equity investments.
Accounts receivable decreased by US$13.5
million from US$73.6 million
as of June 30, 2013 to US$60.1 million as of September 30, 2013. Average accounts receivable
days, calculated based on quarterly average accounts receivable
divided by quarterly revenue and multiplied by number of days in
the quarter, remained stable at 21 days. Inventory as of
September 30, 2013 was US$321.4 million, an increase of US$86.4 million from June
30, 2013. Inventory days, calculated based on quarterly
average inventory (excluding deferred cost) divided by quarterly
cost of goods sold and multiplied by number of days in the quarter,
increased from 101 days in 2Q13 to 140 days in 3Q13. The increase
in inventory is to support the expansion of our product portfolio
expansion to new 2.5G feature phone chipsets, dual-core and
quad-core smartphone chipsets, WCDMA chipsets and connectivity
chipsets, and to prepare for fourth quarter demand for these and
other products. Deferred cost, which consists of products that have
shipped to customer where the rights and obligations of ownership
have passed to customers but revenue has not yet been recognized
due to pending customer acceptance, increased from US$12.6 million as of June
30, 2013 to US$13.6 million as
of September 30, 2013. We plan to
completely step down the use of customer acceptance program in
4Q13. Total assets as of September 30,
2013 were US$1,048.2 million,
up US$108.1 million from US$940.1 million as of June 30, 2013. The increase in total assets was
primarily attributable to increases of US$86.4 million in inventory, US$48.8 million in restricted cash and
US$27.8 million in intangible assets,
offset by decreases of US$62.0
million in cash and US$13.5
million in accounts receivable.
Current liabilities increased from US$420.0 million as of June 30, 2013 to US$531.0
million as of September 30,
2013, primarily due to increases of US$91.3 million in accounts payable, US$23.2 million in short-term bank loans and
US$15.0 million in accrued expenses,
offset by a decrease of US$17.5
million in advances from customers. Long-term liabilities as
of September 30, 2013 were
US$13.8 million, compared to
US$60.8 million as of June 30, 2013, primarily due to a US$50.0 million loan transferred from long-term
loan to short-term loan.
WEBCAST OF CONFERENCE CALL:
The Company's senior management will host a conference call at
8:00 pm (U.S Eastern) / 5:00 pm (U.S Pacific) on Monday, November 11, 2013, which is 9:00 am on Tuesday,
November 12, 2013 in Hong
Kong to discuss the financial results and recent business
activities. The conference call may be accessed by calling:
|
Toll
|
- United
States/International
- United
Kingdom
|
+1 845 675
0437
+44 20 3059
8139
|
- Hong
Kong
|
+852 2475
0994
|
-
Singapore
-
China
|
+65 672
39381
+86 4006208038 or +86
8008190121
|
Participant
Passcode
|
"SPRD" or
"Spreadtrum"
|
A telephone replay will be available shortly after the call
until November 18, 2013 at (US Toll /
International) +1 646 254 3697 or (Hong
Kong) +852 3051 2780, passcode: 87818369.
A live webcast of the conference call and replay, along with an
accompanying quarterly results presentation, will be available in
the investor relations section of the Company's website.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES:
In addition to disclosing financial results prepared in
accordance with US GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of share-based
compensation and other non-recurring items. The non-GAAP financial
measures used by management and disclosed by the Company exclude
the income statement effects of all forms of share-based
compensation.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with US GAAP. The financial results reported in
accordance with US GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measures used by the Company may be prepared differently from and,
therefore, may not be comparable to similarly titled measures used
by other companies.
The Company provides the presentation of non-GAAP gross margin,
non- GAAP operating margin, non-GAAP net income, and non-GAAP
diluted earnings per ADS, all excluding share-based compensation
expenses. The Company believes that these non-GAAP financial
measures provide important supplemental information to management
and investors regarding financial and business trends relating to
the Company's financial condition and results of operations. The
non-GAAP diluted earnings per ADS are calculated by dividing
non-GAAP net income by the US GAAP weighted average diluted shares
outstanding.
Spreadtrum
Communications, Inc.
Condensed
Consolidated Income Statements
(in thousands of
US dollars, except per share data and percentages)
(unaudited)
|
|
|
Three months
ended
|
|
|
|
September
30
|
June 30
|
September
30
|
change
from
|
|
2012
|
2013
|
2013
|
2Q13
|
3Q12
|
|
|
|
|
|
|
Revenue from third
parties
|
185,505
|
277,810
|
293,320
|
5.6%
|
58.1%
|
Revenue from a
related party
|
2,367
|
-
|
-
|
-
|
-100.0%
|
Total
revenue
|
187,872
|
277,810
|
293,320
|
5.6%
|
56.1%
|
Cost of
revenue
|
117,810
|
172,885
|
183,472
|
6.1%
|
55.7%
|
|
|
|
|
|
|
Gross
profit
|
70,062
|
104,925
|
109,848
|
4.7%
|
56.8%
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Research &
development
|
36,461
|
59,205
|
57,649
|
-2.6%
|
58.1%
|
Selling, general and
administrative
|
8,475
|
9,972
|
12,816
|
28.5%
|
51.2%
|
Total operating
expenses
|
44,936
|
69,177
|
70,465
|
1.9%
|
56.8%
|
|
|
|
|
|
|
Operating
income
|
25,126
|
35,748
|
39,383
|
10.2%
|
56.7%
|
|
|
|
|
|
|
Non-operating income
(expense)
|
|
|
|
|
|
Interest
income
|
1,530
|
1,379
|
824
|
-40.2%
|
-46.1%
|
Interest
expense
|
(1,058)
|
(976)
|
(1,161)
|
19.0%
|
9.7%
|
Other
income(expense), net
|
(196)
|
1,510
|
(101)
|
-106.7%
|
-48.5%
|
Total non-operating
income (loss)
|
276
|
1,913
|
(438)
|
-122.9%
|
-258.7%
|
Income before income
tax and equity in loss of
affiliates
|
25,402
|
37,661
|
38,945
|
3.4%
|
53.3%
|
|
|
|
|
|
|
Income tax
expense
|
(2,288)
|
(2,585)
|
(3,622)
|
40.1%
|
58.3%
|
Equity in income
(loss) of affiliates, net of taxes
|
(119)
|
(251)
|
327
|
-230.3%
|
-374.8%
|
|
|
|
|
|
|
Net income
|
22,995
|
34,825
|
35,650
|
2.4%
|
55.0%
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
241
|
-
|
-
|
-
|
-100.0%
|
Net income
attributable to Spreadtrum
Communications, Inc.
|
23,236
|
34,825
|
35,650
|
2.4%
|
53.4%
|
Income per ADS,
basic
|
0.50
|
0.71
|
0.71
|
|
|
Income per ADS,
diluted
|
0.44
|
0.64
|
0.64
|
|
|
|
|
|
|
|
|
Margin
analysis:
|
|
|
|
|
|
Gross
margin
|
37.3%
|
37.8%
|
37.5%
|
|
|
Operating
margin
|
13.4%
|
12.9%
|
13.4%
|
|
|
Net margin
|
12.4%
|
12.5%
|
12.2%
|
|
|
|
|
|
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
Basic
|
46,876,567
|
49,251,777
|
50,273,426
|
|
|
Diluted
|
52,412,164
|
54,075,395
|
55,449,001
|
|
|
ADS equivalent
outstanding at end of period
|
47,280,006
|
49,841,210
|
50,593,990
|
|
|
|
|
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ADS
represents three ordinary shares.
|
Spreadtrum
Communications, Inc.
|
Condensed
Consolidated Income Statements
|
(in thousands of US
dollars, except per share data and percentages)
|
(unaudited)
|
|
|
|
|
Nine Months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2012
|
2013
|
Change
|
|
|
|
|
Revenue from third
parties
|
517,691
|
760,149
|
46.8%
|
Revenue from a
related party
|
4,425
|
-
|
-100.0%
|
Total
revenue
|
522,116
|
760,149
|
45.6%
|
Cost of
revenue
|
326,564
|
474,872
|
45.4%
|
|
|
|
|
Gross
profit
|
195,552
|
285,277
|
45.9%
|
|
|
|
|
Operating
expenses
|
|
|
|
Research &
development
|
98,227
|
156,362
|
59.2%
|
Selling, general and
administrative
|
22,843
|
31,234
|
36.7%
|
Total operating
expenses
|
121,070
|
187,596
|
54.9%
|
|
|
|
|
Operating
income
|
74,482
|
97,681
|
31.1%
|
|
|
|
|
Non-operating
income(expense)
|
|
|
|
Interest
income
|
5,410
|
3,357
|
-37.9%
|
Interest
expense
|
(3,311)
|
(3,067)
|
-7.4%
|
Other
income(expense), net
|
(302)
|
1,123
|
-471.9%
|
Total non-operating
income
|
1,797
|
1,413
|
-21.4%
|
Income before income
tax and equity in loss of affiliates
|
76,279
|
99,094
|
29.9%
|
Income tax
expense
|
(8,361)
|
(8,006)
|
-4.2%
|
Equity in loss of
affiliates, net of taxes
|
(229)
|
(358)
|
56.3%
|
|
|
|
|
Net income
|
67,689
|
90,730
|
34.0%
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
755
|
-
|
-100.0%
|
Net income
attributable to Spreadtrum Communications, Inc.
|
68,444
|
90,730
|
32.6%
|
Income per ADS,
basic
|
1.48
|
1.84
|
24.3%
|
Income per ADS,
diluted
|
1.32
|
1.66
|
25.8%
|
|
|
|
|
Margin
analysis:
|
|
|
|
Gross
margin
|
37.5%
|
37.5%
|
|
Operating
margin
|
14.3%
|
12.9%
|
|
Net margin
|
13.1%
|
11.9%
|
|
|
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
Basic
|
46,360,713
|
49,330,622
|
|
Diluted
|
51,742,605
|
54,632,144
|
|
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ADS
represents three ordinary shares
|
Spreadtrum Communications,
Inc.
Condensed
Consolidated Balance Sheets
(in thousands of
US dollars)
(unaudited)
|
|
|
|
As
of
|
|
September
30,
|
June
30,
|
September
30,
|
|
2012
|
2013
|
2013
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
157,441
|
167,487
|
139,715
|
Restricted
cash
|
17,849
|
85,121
|
188,658
|
Short-term
deposit
|
32,583
|
34,211
|
-
|
Accounts receivable,
net
|
19,261
|
73,551
|
60,140
|
Inventories
|
124,466
|
235,015
|
321,384
|
Deferred
cost
|
16,202
|
12,597
|
13,611
|
Deferred tax
assets
|
3,147
|
2,492
|
2,505
|
Prepaid expenses and
other current assets
|
16,989
|
48,570
|
60,855
|
Total current
assets
|
387,938
|
659,044
|
786,868
|
|
|
|
Property and
equipment, net
|
50,373
|
52,012
|
56,681
|
Acquired intangible
assets, net
|
74,451
|
72,740
|
100,500
|
Equity
investment
|
50,538
|
55,683
|
58,435
|
Deferred tax
assets
|
818
|
775
|
776
|
Goodwill
|
38,908
|
38,908
|
39,016
|
Long-term restricted
cash
|
63,343
|
54,704
|
-
|
Indemnification
assets
|
5,567
|
3,412
|
3,412
|
Other long-term
assets
|
4,461
|
2,817
|
2,481
|
Total
assets
|
676,397
|
940,095
|
1,048,169
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Short-term loans and
current portion of a long-term loan
|
14,113
|
90,930
|
114,114
|
Accounts
payable
|
133,568
|
173,391
|
264,656
|
Advances from
customers
|
28,383
|
73,149
|
55,647
|
Income tax
payable
|
13,356
|
15,281
|
14,366
|
Accrued expenses and
other current liabilities
|
48,536
|
67,238
|
82,209
|
Total current
liabilities
|
237,956
|
419,989
|
530,992
|
Long-term
loan
|
69,949
|
50,000
|
-
|
Other long-term
obligations
|
5,349
|
5,765
|
8,780
|
Long-term tax
liabilities
|
5,567
|
3,412
|
3,412
|
Deferred tax
liabilities
|
1,612
|
1,612
|
1,612
|
Total long term
liabilities
|
82,477
|
60,789
|
13,804
|
Total
liabilities
|
320,433
|
480,778
|
544,796
|
|
|
|
Non-controlling
shareholder interest
|
1,617
|
396
|
396
|
Shareholders'
equity
|
354,347
|
458,921
|
502,977
|
Total liabilities and
shareholders' equity
|
676,397
|
940,095
|
1,048,169
|
|
|
|
|
Spreadtrum
Communications, Inc.
Reconciliation of
GAAP to Non-GAAP Results
(in thousands of
US dollars, except per share data and percentages)
(unaudited)
|
|
|
Three Months
ended
|
|
September
30,
|
June
30,
|
September
30,
|
|
2012
|
2013
|
2013
|
|
|
|
|
Cost of
revenue
|
117,810
|
172,885
|
183,472
|
Adjustment for
share-based compensation
|
(135)
|
(560)
|
(164)
|
Cost of revenue
(non-GAAP)
|
117,675
|
172,325
|
183,308
|
Operating
income
|
25,126
|
35,748
|
39,383
|
Adjustment for
share-based compensation within: Cost of revenue
|
135
|
560
|
164
|
Research and
development
|
4,404
|
13,188
|
3,783
|
Selling,
general, and administrative
|
1,541
|
3,214
|
1,597
|
Operating
income (non-GAAP)
|
31,206
|
52,710
|
44,927
|
Net
income
|
23,236
|
34,825
|
35,650
|
Adjustment for
share-based compensation within: Cost of revenue
|
135
|
560
|
164
|
Research and
development
|
4,404
|
13,188
|
3,783
|
Selling,
general, and administrative
|
1,541
|
3,214
|
1,597
|
Net income
(non-GAAP)*
|
29,316
|
51,787
|
41,194
|
Net income per
ADS, diluted
|
0.44
|
0.64
|
0.64
|
Adjustment for
share-based compensation
|
0.12
|
0.31
|
0.10
|
Net income per
ADS, diluted (non-GAAP)*
|
0.56
|
0.95
|
0.74
|
Gross
margin
|
37.3%
|
37.8%
|
37.5%
|
Adjustment for
share-based compensation
|
0.1%
|
0.2%
|
0.1%
|
Gross margin
(non-GAAP)
|
37.4%
|
38.0%
|
37.6%
|
Operating
margin
|
13.4%
|
12.9%
|
13.4%
|
Adjustment for
share-based compensation
|
3.2%
|
6.1%
|
1.9%
|
Operating
margin (non-GAAP)*
|
16.6%
|
19.0%
|
15.3%
|
Net
margin
|
12.4%
|
12.5%
|
12.2%
|
Adjustment for
share-based compensation
|
3.2%
|
6.1%
|
1.9%
|
Net margin
(non-GAAP)*
|
15.6%
|
18.6%
|
14.1%
|
Operating
expenses
|
44,936
|
69,177
|
70,465
|
Adjustment for
share-based compensation:
|
|
|
|
Research and
development
|
(4,404)
|
(13,188)
|
(3,783)
|
Selling,
general and administrative
|
(1,541)
|
(3,214)
|
(1,597)
|
Operating
expenses (non-GAAP)
|
38,991
|
52,775
|
65,085
|
|
|
|
|
* There is no
tax effect resulting from these adjustment items.
|
ABOUT SPREADTRUM COMMUNICATIONS, INC.
Spreadtrum Communications, Inc. (NASDAQ:SPRD; "Spreadtrum") is a
fabless semiconductor company that develops mobile chipset
platforms for smartphones, feature phones and other consumer
electronics products, supporting 2G, 3G and 4G wireless
communications standards. Spreadtrum's solutions combine its highly
integrated, power-efficient chipsets with customizable software and
reference designs in a complete turnkey platform, enabling
customers to achieve faster design cycles with a lower development
cost. Spreadtrum's customers include global and China-based manufacturers developing mobile
products for consumers in China
and emerging markets around the world. For more information, visit
www.spreadtrum.com.
SAFE HARBOR STATEMENT:
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, statements regarding the
Company's ability to serve higher value smartphone segments. The
Company uses words like "believe," "anticipate," "intend,"
"estimate," "expect," "project" and similar expressions to identify
forward-looking statements, although not all forward-looking
statements contain these words. These statements are
forward-looking in nature and involve risks and uncertainties that
may cause actual market trends and the Company's actual results to
differ materially from those expressed or implied in these
forward-looking statements for a variety of reasons. Potential
risks and uncertainties include, but are not limited to, continuing
competitive pressure in the semiconductor industry and the effect
of such pressure on prices; unpredictable changes in technology and
consumer demand for mobile phones; the rate at which the market
adoption of TD-SCDMA technology will grow; the Company's ability to
sustain recent rates of growth and its dominant market share
position in TD-SCDMA market; market acceptance of the Company's
smartphone products and WCDMA products; the state of and any change
in the Company's relationship with its major domestic and
international customers and Chinese government agencies; and
changes in political, economic, legal and social conditions in
China. For additional discussion
of these risks and uncertainties and other factors, please consider
the information contained in the Company's filings with the U.S.
Securities and Exchange Commission (the "SEC") and the annual
report on Form 20-F filed on April 26,
2013 especially the section under "Risk Factors" and such
other documents that the Company may file with the SEC from time to
time, including on Form 6-K. The Company assumes no obligation to
update any forward-looking statements, which apply only as of the
date of this press release, and does not intend to update any
forward-looking statement whether as a result of new information,
future events or otherwise except as required by law.
SOURCE Spreadtrum Communications, Inc.