Investor Relation
Google Finance
SEC Filing
Aug 13, 2014
2014 Q1 Data
Check list:
1.Major Business.
China SoC (system on a chip) developer, previously famous for mp3 chip-set. Now is building android tablet SoC.
2.Balance sheet.
Current price is $2.10. Shares 68.5m. Market Cap $145m. Tangible book value $3.80. Net Cash $212m. Debt $40m. Inventory $25m
3.Credit facility.
Not important
4.Financial data by years.
5.Insider holding, options, Insider trading info, share buy back.
(1) Insiders seems have very few shares.
(2)Since 2007 the company has repurchased 22.5m ADS. However, they are not retired yet.
6.Management compensation.
7.Employee numbers. Revenue/Employee. Compensation/Employee.
Around 600 to 700 employees. Mainly engineers.
8.Industry comparison.
MTK is its main competitor.
2014年第一季度，中国大陆平板应用处理器供应商出货量，瑞芯微、联发科（MTK）、全志占比分别为28.9%、25.3%和23.5%。
9.Auditor
Deloitte Touche Tohmatsu
10.Major events.
(1) Since 2011, the company start to draw on USD$ loan and deposit with restricted RMB at the same time. The idea is to take the advantage of the low USD$ interest rate while earn higher interest on RMB deposit. Currently there is $40m loan outstanding.
(2) The current CEO Zhou, Zhenyu, is selected since 2011.
(3) There is a fund called Accretive Capital got quite pissed off with the management and demand $100m tender offer. Link
(1) Since 2008 the company's net cash has decreased by over $50m. However, that includes the share buy back spending, inventory build up. The real lose is probably just below $20m.
(2) The company was doing very well from 2004 to 2008 mainly because its mp3 audio chip. It has a market share of > 50% at top time. Since then the mp3 market is shrinking and company failed to convert to new market. Since 2011, it invested in android tablet chipset. Although it has build quite some volume. Currently it is hard to tell whether they will be success in this market.
(3) The main attractiveness is its balance sheet. However, it is hard to tell whether it will conduct a tender offer in the near future. Its major business is losing quite a lot money every year. But its investment income help to offset major part of that. Overall, the cash burning rate is quite low now.
(4) Its inventory is building up quite a lot to $25m now which is about half year revenue. This is quite a concern. Also its R&D spending is very high compare to revenue.
(5) Overall the stock price is quite cheap now. It is very uncertain that the tablet SoC business will turn out to be good. Also the management doesn't seem to be share holder friendly.
(5) Overall the stock price is quite cheap now. It is very uncertain that the tablet SoC business will turn out to be good. Also the management doesn't seem to be share holder friendly.
