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We would like to remind you that during the course of this conference call, Actions management team may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are simply estimates and actual events or results may differ materially.We refer you to the documents that Actions files from time to time with the SEC, specifically the company’s most recently filed Forms F-1, 20-F and 6-Ks. These documents identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. And I’d now like to turn the call over to Dr. Zhenyu Zhou. Zhenyu Zhou Thank you for participating in Actions’ earnings conference call. We appreciate your continued interest in the company. I am pleased to be able to share with you an update on our first quarter performance as well as discuss our strategy for 2012. Later on the call, Nigel Liu, CFO will discuss financial results for the first quarter. I will be available for Q&A portion of the call along with Nigel and Chung Hsu, Actions’ Director of Business Development and Investor Relations. And now, for an update of our business. We were pleased to report revenue growth 15% year-over-year despite typical seasonality and fewer working days in the quarter. In the first quarter of 2012, Actions revenue was $10.7 million and net loss was $0.65 million, or $0.00 per ADS. Gross margin for the first quarter of 2012 was 34.9%. Our product mix shifted to a higher percentage of revenue from our more value-oriented products such as automotive. However we still maintained our leading market share position in mainstream portable video and portable audio products. We are proud of our market leadership position and believe this provides a strong platform for growth.
Actions holds the dominant market share in non-Apple audio products and video players with gaming and video capture functionality and we are continuing to rapidly gain market share in advanced high definition portable video market. We saw significant increase in shipment in our HD portable video products during the first quarter.We continue to leverage the strong product portfolio we have to maintain our market share and further extend our leadership in these established markets. Our growth initiative will largely focus on penetrating and gaining traction in the mobile internet-enabled multimedia market. As we noted last quarter, we believe the most important growth segment for Actions in the low-end tablet market. According to recent reports, China-based wide box tablet market has ramped up their combined monthly shipment to more than 3 million units and total shipments of the tablet by all markers, I expect them to top 50 million units in 2012. We are excited about the growth potential in the product category. Following the successful shipment program, we recently launched our ATM701x product family targeting the tablet market as planned. The ATM701x family supports the latest version of the Android OS, also known as Ice Cream Sandwich. The ATM701x is commencing volume shipments to selected customers this month. As we move through the year, we will continue to invest in R&D for advanced products and we will look to lower operation expenses. Creating long term shareholder value will continue to be a top priority for the company. In the first quarter we spent approximately $1 million on the share repurchase program compared with $1.2 million in the fourth quarter. As of March 31, 2012, the company had invested a total of approximately $42.5 million in the program representing approximately 18.3 million ADS shares. Management and the Board will continue to evaluate opportunities to enhance shareholder value including alternatives to the current buyback program. Despite the challenging economy, our portfolio diversification and international adverts have allowed us to steadily grow the shipment volumes of our low-end advanced product segments. And we expect to see further opportunities for growth in these areas in 2012. Read the rest of this transcript for free on seekingalpha.com