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And now I'd 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'm pleased to be able to share with you an update on our second quarter performance as well as discuss our strategy for the second half of 2012. Later on the call, Nigel Liu, CFO, will discuss financial results for the second quarter. I will be available for the Q&A portion on the call along with Nigel and Chung Hsu, Actions Director of Investor Relations. And now for our update on our business. We were pleased to report revenue growth of 20.7% year over year and 17.8% from last quarter. In the second quarter of 2012, Actions revenue was $12.6 million and net loss was $0.56 million or $0.01 per ADS. Gross margin in the second quarter increased 37% from 34.9% in the first quarter. Our more value-oriented solutions such as boom box products continued to comprise the largest portion of our product mix during the quarter. In addition to the continued strength in the boom box segment, we maintained our leading market share positions in the mainstream portable video and portable audio products. We are proud of our market leadership positions and continue to believe it provides a strong platform for growth. Actions owns the dominant market share in non-Apple audio products and video players with gaming and video capturing functionality, and we continue to gain market share in the advanced high-definition portable video market. Our growth initiatives remain largely focused on penetrating and gaining tractions in the mobile internet enabled multimedia market. As we move through the second half of the year, we will continue to invest in R&D for advanced products and we'll maintain prudent management of our operating expenses.
Creating long-term shareholder value remains a top priority for the company. In the second quarter we spent approximately $1.4 million on the share repurchase program, compared with $1.0 million in the first quarter. As of June 30, 2012, the company had invested a total of approximately $43.9 million in the program, representing approximately 19.1 million ADS shares, which is close to the previously approved 20 million ADS cap of the existing buyback program. Therefore we are pleased to announce that today the Board approved an increase of 10 million ADS to the existing buyback program.During the second quarter, we faced the additional headwind of RMB exchange rate volatility and recorded an exchange rate loss. Although we anticipate continued RMB volatility for the remainder of the year, by leveraging the RMB-denominated yields, we still enjoy a high return from our RMB-denominated assets. And now for a detailed look at each category. Portable audio, during the second quarter we maintained our leading positions in the mainstream audio boom box market category. Volume shipments of our audio boom box products increased in the second quarter. We continue to secure design wins for our boom box products with large branded customers in China and we are beginning to penetrating international branded customers. In the second quarter, our sales to the mainstream segment of the MP3 market serving the non-display, mono-display and small color display media products continued to maintain the leading position in the market share of this category. Portable video, overall shipments in the video category including our standard definition D1 and high-definition HD PMP and gaming products decreased in the second quarter as the market moved towards adoption of tablets. Video continues to be a key category for Actions, and as we move through the second half of 2012, we are focused on increasing our contributions from our newer advanced products in the video category. Read the rest of this transcript for free on seekingalpha.com