Actel Announces First Quarter 2010 Financial Results

MOUNTAIN VIEW, CA -- (MARKET WIRE) -- Apr 29, 2010 -- Actel Corporation (NASDAQ: ACTL) today announced net revenues of $52.3 million for the first quarter of 2010, up 7.8 percent from the first quarter of 2009, and up 5.2 percent from the fourth quarter of 2009.

Actel reported net income in accordance with U.S. generally accepted accounting principles (GAAP) of $2.9 million, or $0.11 per diluted share, for the first quarter of 2010 compared with a net loss of $(3.0) million, or $(0.11) per basic share, for the first quarter of 2009 and a net income of $1.0 million, or $0.04 per diluted share, for the fourth quarter of 2009.

Non-GAAP net income, which excludes stock-based compensation, expenses associated with the restructuring, and other non-recurring adjustments, was $3.8 million, or $0.14 per diluted share, for the first quarter of 2010 compared with $0.8 million, or $0.03 per diluted share, for the first quarter of 2009 and $3.3 million, or $0.12 per diluted share, for the fourth quarter of 2009.

Significant Developments

During the first quarter:

-- In March, Actel unveiled SmartFusion™, the world's first intelligent
   mixed signal FPGA. SmartFusion devices feature Actel's proven FPGA
   fabric, a complete microcontroller subsystem built around a hard ARM®
   Cortex™-M3 processor and programmable analog blocks.

-- Actel also announced in March a comprehensive development environment
   and ecosystem for SmartFusion Intelligent Mixed Signal FPGAs, including
   RTOS support from Micrium, compiler support from IAR Systems, a
   comprehensive training partnership with Doulos, and full production
   releases of Actel's own Libero and Soft Console IDE tools.

-- Pigeon Point Systems announced a new MMC management solution and IPMC
   and Carrier IPMC Starter Kits both using SmartFusion Intelligent Mixed
   Signal FPGAs.

-- Actel received a coveted supplier award in March from Mitsubishi
   Electric Corporation, a prime contractor on many of Japan's most
   important space programs. This award reflects Actel's continued
   dedication to quality, reliability and support of the
   worldwide space market.

-- In January, Actel announced that its low power ProASIC3® and
   ProASICPLUS® FPGA families have been designed into flight-critical
   applications on the new Boeing 787 Dreamliner commercial airliner. The
   commercial aircraft successfully completed its maiden test flight on
   December 15, 2009.

Business Outlook - Second Quarter 2010

The Company believes that second quarter 2010 revenues will be up 8 percent to 12 percent sequentially. Gross margin is expected to be about 60 percent. Operating expenses are anticipated to come in at approximately $27.8 million, which excludes an estimated $2.0 million of stock-based compensation expense and $0.6 million associated with the acquisition of Pigeon Point Systems. Other income is expected to be about $0.5 million. The non-GAAP tax rate for the quarter is expected to be about 30 percent. Outstanding fully diluted share count is expected to be about 26.4 million shares.

Conference Call

A conference call to discuss first quarter results will be held Thursday, April 29, 2010, at 1:30 p.m. PDT. A live webcast and replay of the call will be available. Webcast and replay access information as well as financial and other statistical information can be found on Actel's website, www.actel.com.

Non-GAAP Adjustments and Reconciliation

This release includes non-GAAP net income, non-GAAP net income per share data, and other non-GAAP line items from the Condensed Consolidated Statements of Operations, including total costs and expenses, income from operations, and income before tax provision. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. These non-GAAP adjustments are provided to enhance the user's overall understanding of our operating performance. Actel believes that the presentation of these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to both management and investors regarding financial and business trends relating to Actel's financial condition and results of operations, particularly by excluding certain expense and income items that we believe are not indicative of our core operating results. Actel believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting.

Forward-Looking Statements

The statements in the paragraph under the heading "Business Outlook - Second Quarter 2010," are forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and should be read with the "Risk Factors" in Actel's most recent Form 10-K, which can be found on Actel's website, www.actel.com. Actel's projected revenues and operating results for the second quarter of 2010, are subject to a multitude of risks, including general economic conditions and a variety of risks specific to Actel or characteristic of the semiconductor industry, such as fluctuating demand, intense competition, rapid technological change and related intellectual property and international trade issues, wafer and other supply shortages, booking and shipment uncertainties, and a failure to fully achieve the projected results of or to accurately estimate the charges for the restructuring. These and the other Risk Factors make it difficult for Actel to accurately project quarterly financial and restructuring results, and could cause actual results to differ materially from those projected in the forward-looking statements. Any failure to meet expectations could cause the price of Actel's stock to decline significantly. Actel undertakes no obligation to update any information contained in this press release.

About Actel

Actel is the leader in low power FPGAs and mixed signal FPGAs, offering the most comprehensive portfolio of system and power management solutions. Power Matters. Learn more at www.actel.com.

Actel, Actel Fusion, IGLOO, Libero, Pigeon Point, ProASIC, SmartFusion and the associated logos are trademarks or registered trademarks of Actel Corporation. All other trademarks and service marks are the property of their respective owners.

                             ACTEL CORPORATION

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Unaudited, in thousands except per share amounts)



                                                   Three Months Ended
                                              -----------------------------

                                               Apr 4,    Jan 3,    Apr 5,
                                                2010      2010      2009
                                              --------- --------- --------

Net revenues                                  $  52,263 $  49,699 $ 48,459
Costs and expenses:
  Cost of revenues                               19,741    18,715   20,785
  Research and development                       14,727    14,160   16,393
  Selling, general, and
   administrative                                15,013     14,401      13,490
    Restructuring  and  asset  impairment  charges                  14          1,202        1,119
    Amortization  of  acquisition-related
      intangibles                                                                            193              193            193
                                                                                            ---------  ---------  --------
          Total  costs  and  expenses                                        49,688        48,671      51,980
                                                                                            ---------  ---------  --------
Income  (loss)  from  operations                                          2,575          1,028      (3,521)
Interest  income  and  other,  net                                            597                71        1,752
                                                                                            ---------  ---------  --------
Income  (loss)  before  tax  provision                                3,172          1,099      (1,769)
Tax  provision                                                                              234              137        1,187
                                                                                            ---------  ---------  --------
Net  income  (loss)                                                          $      2,938  $          962  $  (2,956)
                                                                                            =========  =========  ========

Net  income  (loss)  per  share:
    Basic                                                                              $        0.11  $        0.04  $    (0.11)
                                                                                            =========  =========  ========
    Diluted                                                                          $        0.11  $        0.04  $    (0.11)
                                                                                            =========  =========  ========

Shares  used  in  computing  net  income  (loss)
  per  share:
    Basic                                                                                    26,313        26,203      26,027
                                                                                            =========  =========  ========
    Diluted                                                                                26,527        26,362      26,027
                                                                                            =========  =========  ========




RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP  STATEMENTS  OF
                                                                OPERATIONS
                                                (Unaudited,  in  thousands)

                                                                                                      Three  Months  Ended
                                                                                            -----------------------------

                                                                                              Apr  4,        Jan  3,          Apr  5,
                                                                                                2010            2010            2009
                                                                                            ---------  ---------  ---------
Cost  and  expenses:
    Non-GAAP  research  and  development                      $    13,590  $    12,915  $    15,105
    Adjustments  related  to  stock  based
      compensation  and  other                                                  1,137          1,245          1,288
                                                                                            ---------  ---------  ---------
    GAAP  research  and  development                              $    14,727  $    14,160  $    16,393
                                                                                            =========  =========  =========

    Non-GAAP  restructuring  and  asset  impairment
      charges                                                                        $              -  $              -  $              -
    Adjustments  related  to  restructuring  and
      asset  impairments                                                                  14          1,202          1,119
                                                                                            ---------  ---------  ---------
    GAAP  restructuring  and  asset  impairment
      charges                                                                        $            14  $      1,202  $      1,119
                                                                                            =========  =========  =========

    Non-GAAP  amortization  of
      acquisition-related  intangibles                        $              -  $              -  $              -
    Adjustments  related  to  amortization  of
      acquisition-related  intangibles                                    193              193              193
                                                                                            ---------  ---------  ---------
    GAAP  amortization  of  acquisition-related
      intangibles                                                                $          193  $          193  $          193
                                                                                            =========  =========  =========

    Non-GAAP  selling,  general  and
      administrative                                                          $    14,158  $    13,487  $    12,454
    Adjustments  related  to  stock  based
      compensation,  option  investigation  and
      other                                                                                        855              914          1,036
                                                                                            ---------  ---------  ---------
    GAAP  selling,  general  and  administrative        $    15,013  $    14,401  $    13,490
                                                                                            =========  =========  =========




RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP  STATEMENTS  OF
                                                                OPERATIONS
                                                (Unaudited,  in  thousands)

                                                                                                      Three  Months  Ended
                                                                                            ----------------------------
                                                                                              Apr  4,        Jan  3,        Apr  5,
                                                                                                2010            2010            2009
                                                                                            --------    --------    --------

Income  (loss)  from  operations:
    Non-GAAP  income  from  operations                          $    4,774    $    4,582    $        115
    Adjustments  related  to  restructuring  and
      stock  based  compensation,  and  other                    (2,199)      (3,554)      (3,636)
                                                                                            --------    --------    --------
    GAAP  income  (loss)  from  operations                    $    2,575    $    1,028    $  (3,521)
                                                                                            ========    ========    ========

Interest  income  and  other,  net:
    Non-GAAP  interest  income  and  other,  net          $        597    $          71    $    1,036
    Adjustments  related  to  insurance
      reimbursement                                                                          -                  -              716
                                                                                            --------    --------    --------
    GAAP  interest  income  and  other,  net                  $        597    $          71    $    1,752
                                                                                            ========    ========    ========

Income  (loss)  before  tax  provision:
    Non-GAAP  income  before  tax  provision                $    5,371    $    4,653    $    1,151
    Adjustments  related  to  restructuring  and
      stock  based  compensation,  and  other                    (2,199)      (3,554)      (2,920)
                                                                                            --------    --------    --------
    GAAP  income  (loss)  before  tax  provision          $    3,172    $    1,099    $  (1,769)
                                                                                            ========    ========    ========




RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP  STATEMENTS  OF
                                                                OPERATIONS
            (Unaudited,  in  thousands  except  per  share  amounts)

                                                                                                      Three  Months  Ended
                                                                                            ----------------------------

                                                                                              Apr  4,        Jan  3,        Apr  5,
                                                                                                2010            2010            2009
                                                                                            --------    --------    --------
Net  income  (loss):
    Non-GAAP  net  income                                                  $    3,760    $    3,257    $        806
    Adjustments  related  to  restructuring  and
      stock  based  compensation,  other  and  tax                (822)      (2,295)      (3,762)
                                                                                            --------    --------    --------
    GAAP  net  income  (loss)                                            $    2,938    $        962    $  (2,956)
                                                                                            ========    ========    ========

Net  income  (loss)  per  share:
    Basic:
    Non-GAAP  net  income  per  share                              $      0.14    $      0.12    $      0.03
    Adjustments  related  to  restructuring  and
      stock  based  compensation,  other  and  tax              (0.03)        (0.08)        (0.14)
                                                                                            --------    --------    --------
    GAAP  net  income  (loss)  per  share                        $      0.11    $      0.04    $    (0.11)
                                                                                            ========    ========    ========

    Diluted:
    Non-GAAP  net  income  per  share                              $      0.14    $      0.12    $      0.03
    Adjustments  related  to  restructuring,
      stock  based  compensation,  other  and  tax              (0.03)        (0.08)        (0.14)
                                                                                            --------    --------    --------
    GAAP  net  income  (loss)  per  share                        $      0.11    $      0.04    $    (0.11)
                                                                                            ========    ========    ========




                                                        ACTEL  CORPORATION

                                    CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                                            (In  thousands)

                                                                                                                    Apr  4,      Jan  3,
                                                                                                                      2010          2010
                                                                                                                ---------  ---------

                                                        ASSETS                                          (Unaudited)(Audited)

Current  assets:
    Cash  and  cash  equivalents                                                          $    30,297  $    45,994
    Short-term  investments                                                                    118,336      106,007
    Accounts  receivable,  net                                                                  33,166        19,112
    Inventories,  net                                                                                  38,380        37,324
    Deferred  income  taxes                                                                          1,729          1,729
    Prepaid  expenses  and  other  current  assets                                  7,056          8,166
                                                                                                                ---------  ---------
          Total  current  assets                                                                  228,964      218,332
Long-term  investments                                                                                  656              663
Property  and  equipment,  net                                                                21,977        22,969
Goodwill  and  other  intangible  assets,  net                                    34,746        34,939
Deferred  income  taxes                                                                                      -                  -
Other  assets,  net                                                                                    29,839        30,099
                                                                                                                ---------  ---------
                                                                                                                $  316,182  $  307,002
                                                                                                                =========  =========

                          LIABILITIES  AND  SHAREHOLDERS'  EQUITY

Current  liabilities:
    Accounts  payable                                                                            $    11,988  $    10,262
    Accrued  compensation  and  employee  benefits                                6,824          8,206
    Accrued  licenses                                                                                    6,016          4,996
    Other  accrued  liabilities                                                                  3,777          5,422
    Deferred  income  on  shipments  to  distributors                          30,158        22,867
                                                                                                                ---------  ---------
          Total  current  liabilities                                                          58,763        51,753
    Deferred  compensation  plan  liability                                            5,807          5,470
    Deferred  rent  liability                                                                      1,345          1,590
    Accrued  sabbatical  compensation                                                      2,743          2,805
    Other  long-term  liabilities,  net                                                  11,250        11,921
                                                                                                                ---------  ---------
          Total  liabilities                                                                          79,908        73,539
    Shareholders'  equity                                                                        236,274      233,463
                                                                                                                ---------  ---------
                                                                                                                $  316,182  $  307,002
                                                                                                                =========  =========




                                                        ACTEL  CORPORATION

                            SUPPLEMENTAL  HISTORICAL  FINANCIAL  INFORMATION
                                                                (Unaudited)

                                                                                                        Three  Months  Ended
                                                                                            ----------------------------
                                                                                              Apr  4,        Jan  3,        Apr  5,
                                                                                                2010            2010            2009
                                                                                            --------    --------    --------
Non-GAAP  Operations  Information
    Percent  of  Revenue
    Gross  Margin                                                                        62.2%          62.3%          57.1%
    R&D  Expense                                                                          26.0%          26.0%          31.2%
    SG&A  Expense                                                                        27.1%          27.1%          25.7%

Depreciation  and  Amortization
    Expense  (000's)                                                                2,995          3,063          3,497
    Capital  Expenditures  (000's)                                      1,817          1,044          2,145

Revenue  by  Technology
    Flash                                                                                          24%              24%              24%
    Other                                                                                          76%              76%              76%

Revenue  by  Geographic  Region
    North  America                                                                          54%              55%              52%
    Europe                                                                                        20%              23%              27%
    Asia  Pacific/Rest  of  World                                                26%              22%              21%

Revenue  by  Channel
    OEM                                                                                              37%              28%              33%
    Distribution                                                                            63%              72%              67%

Revenue  by  Market  Segment
    Communication                                                                            7%                8%                7%
    Consumer                                                                                    16%              20%              16%
    Industrial                                                                                31%              30%              37%
    Aero/Military                                                                          46%              42%              40%

Market  segment  numbers  are  based  on  our  estimate  of  end  uses  by  our
customers.

Flash  technology  products  are  defined  as  the  ProASIC,  ProASICPLUS,
ProASIC3,  ProASIC3  Low  Power,  IGLOO,  IGLOO  PLUS,  Fusion,  and
SmartFusion  product  families.

 

Investor Contact:
Maurice Carson
(650) 318-4700

Media Contact:
Anna del Rosario
(650) 318-4500





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