Actel Announces Third Quarter 2008 Financial Results (Revenue up 11%)

MOUNTAIN VIEW, CA -- (MARKET WIRE) -- Oct 28, 2008 -- Actel Corporation (NASDAQ: ACTL) today announced net revenues of $53.2 million for the third quarter of 2008, down 8 percent from the second quarter of 2008 and up 11 percent from the third quarter of 2007.

Non-GAAP net income, which excludes stock-based compensation, option restatement expenses, and other nonrecurring adjustments, was $1.9 million for the third quarter of 2008 compared with $4.0 million for the second quarter of 2008 and $3.3 million for the third quarter of 2007. Non-GAAP earnings were $0.07 per diluted share for the third quarter of 2008 compared with $0.15 for the second quarter of 2008 and $0.12 for the third quarter of 2007.

Including stock-based compensation and other adjustments in accordance with generally accepted accounting principles (GAAP), Actel reported a net loss of $1.4 million, or ($0.05) per basic share, for the third quarter of 2008 compared with net income of $2.0 million, or $0.08 per diluted share, for the second quarter of 2008 and net income of $1.8 million, or $0.07 per diluted share, for the third quarter of 2007.

Gross margin was 58.0 percent for the third quarter of 2008 compared with 60.0 percent for the second quarter of 2008 and 59.7 percent for the third quarter of 2007.

Business Outlook - Fourth Quarter 2008

The company believes that fourth quarter 2008 revenues will be flat to four percent down sequentially. Gross margin is expected to be around 59 to 60 percent. Operating expenses are anticipated to come in at approximately $29 million, which excludes an estimated $1.8 million of stock-based compensation expense. Other income is expected to be about $1.5 million. The tax provision for the quarter is expected to be a credit of approximately $1 million. Outstanding fully diluted share count is expected to be about 25.9 million shares. The guidance for operating expenses does not include the ongoing amortization of intangibles and deferred compensation for the acquisition of Pigeon Point Systems of approximately $0.7 million or the one time charge for the reduction in force that is expected to be around $3 million.

Conference Call

A conference call to discuss third quarter results will be held Tuesday, October 28, 2008, at 2:00 p.m. Pacific Time. A live web cast and replay of the call will be available. Web cast and replay access information as well as financial and other statistical information can be found on Actel's web site, www.actel.com.

Non-GAAP Financial Measures

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, in particular 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.

About Actel

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

Forward-Looking Statement Safe Harbor

The statements in the paragraph under the heading "Business Outlook - Fourth Quarter 2008" 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-Q, which can be found on Actel's web site, www.actel.com. Actel's quarterly revenues and operating results 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, and booking and shipment uncertainties. These and the other Risk Factors make it difficult for Actel to accurately project quarterly revenues and operating 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.

Editor's Note: The Actel name and logo are registered trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.



                        ACTEL CORPORATION

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


                           Three Months Ended          Nine Months Ended
                     -------------------------------  --------------------
                      Oct. 5,     Jul. 6,   Sep. 30,   Oct. 5,   Sep. 30,
                       2008        2008       2007      2008       2007
                     ---------  ---------- ---------- ---------  ---------
Net revenues         $  53,215  $   57,649 $   47,880 $ 165,620  $ 145,274
Costs and expenses:
Cost of revenues        22,343      23,035     19,306    68,116     59,072
Research and
 development            16,995      17,103     13,754    50,807     48,251
Selling, general,
 and administrative     15,038      15,613     14,800    47,431     46,285
Amortization of
 acquisition-
 related intangibles       458           -          -       458          -
                     ---------  ---------- ---------- ---------  ---------
Total costs and
 expenses               54,834      55,751     47,860   166,812    153,608
                     ---------  ---------- ---------- ---------  ---------
Income (loss) from
 operations             (1,619)      1,898         20    (1,192)    (8,334)
Interest income and
 other, net                465       1,701      2,156     4,098        6,376
                                          ---------    ----------  ----------  ---------    ---------
Income  (loss)  before
  tax  provision
  (benefit)                            (1,154)            3,599            2,176          2,906          (1,958)
Tax  provision
  (benefit)                                  219              1,635                391          2,139              (351)
                                          ---------    ----------  ----------  ---------    ---------
Net  income  (loss)        $    (1,373)  $        1,964  $        1,785  $          767    $    (1,607)
                                          =========    ==========  ==========  =========    =========

Net  income  (loss)
  per  share:
      Basic                          $      (0.05)  $          0.08  $          0.07  $        0.03    $      (0.06)
                                          =========    ==========  ==========  =========    =========
      Diluted                      $      (0.05)  $          0.08  $          0.07  $        0.03    $      (0.06)
                                          =========    ==========  ==========  =========    =========

Shares  used  in
  computing  net
  income  (loss)  per
  share:
      Basic                                25,726            25,408          26,935        25,873          26,842
                                          =========    ==========  ==========  =========    =========
      Diluted                            25,726            26,155          27,234        26,267          26,842
                                          =========    ==========  ==========  =========    =========





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



                                                                      Three  Months  Ended          Nine  Months  Ended
                                                              --------------------------  -----------------
                                                                Oct.  5,    Jul.  6,  Sep.  30,  Oct.  5,  Sep.  30,
                                                                  2008          2008          2007          2008          2007
                                                              --------  --------  --------  --------  --------

Cost  and  expenses:
    Non-GAAP  research  and
      development                                  $  15,408  $  16,159  $  12,917  $  47,250  $  41,342
    Adjustments  related  to
      stock  based  compensation
      and  other                                            1,587            944            837        3,557        6,909
                                                              --------  --------  --------  --------  --------
    GAAP  research  and
      development                                  $  16,995  $  17,103  $  13,754  $  50,807  $  48,251
                                                              ========  ========  ========  ========  ========

    Non-GAAP  amortization  of
      acquisition-related
      intangibles                                  $            -  $            -  $            -  $            -  $            -
    Adjustments  related  to
      amortization  of
      acquisition-related
      intangibles                                            458                -                -            458                -
                                                              --------  --------  --------  --------  --------
    GAAP  amortization  of
      acquisition-related
      intangibles                                  $        458  $            -  $            -  $        458  $            -
                                                              ========  ========  ========  ========  ========

    Non-GAAP  selling,  general
      and  administrative                    $  14,126  $  14,437  $  13,079  $  42,752  $  39,722
    Adjustments  related  to  stock
      based  compensation,  option
      investigation  and  other                    912        1,176        1,721        4,679        6,563
                                                              --------  --------  --------  --------  --------
    GAAP  selling,  general  and
      administrative                            $  15,038  $  15,613  $  14,800  $  47,431  $  46,285
                                                              ========  ========  ========  ========  ========





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



                                                              Three  Months  Ended              Nine  Months  Ended
                                                    ----------------------------    ------------------
                                                    Oct.  5,      Jul.  6,      Sep.  30,    Oct.  5,      Sep.  30,
                                                        2008            2008            2007            2008            2007
                                                    --------    --------    --------    --------    --------

Income  (loss)  from
  operations:
    Non-GAAP  income  from
      operations                          $    1,338    $    4,018    $    2,578    $    7,502    $    5,138
    Adjustments  related  to
      stock  based
      compensation  and
      other                                        (2,957)      (2,120)      (2,558)      (8,694)    (13,472)
                                                    --------    --------    --------    --------    --------
    GAAP  (loss)  income
      from  operations                $  (1,619)  $    1,898    $          20    $  (1,192)  $  (8,334)
                                                    ========    ========    ========    ========    ========

Interest  income  and
  other,  net:
    Non-GAAP  interest
      income  and  other,  net    $    1,338    $    1,701    $    2,156    $    4,971    $    6,376
    Adjustments  related  to
      investment  impairment            (873)                -                  -            (873)                -
                                                    --------    --------    --------    --------    --------
    GAAP  interest  income
      and  other,  net                  $        465    $    1,701    $    2,156    $    4,098    $    6,376
                                                    ========    ========    ========    ========    ========

Income  (loss)  before  tax
  provision:
    Non-GAAP  income  before
      tax  provision                    $    2,676    $    5,719    $    4,734    $  12,473    $  11,514
    Adjustments  related  to
      stock  based
      compensation  and
      other                                        (3,830)      (2,120)      (2,558)      (9,567)    (13,472)
                                                    --------    --------    --------    --------    --------
    GAAP  (loss)  income
      before  tax  provision      $  (1,154)  $    3,599    $    2,176    $    2,906    $  (1,958)
                                                    ========    ========    ========    ========    ========





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



                                                              Three  Months  Ended              Nine  Months  Ended
                                                    ----------------------------    ------------------
                                                    Oct.  5,      Jul.  6,      Sep.  30,    Oct.  5,      Sep.  30,
                                                        2008            2008            2007            2008            2007
                                                    --------    --------    --------    --------    --------
Net  income  (loss):
    Non-GAAP  net  income          $    1,873    $    4,003    $    3,314    $    8,731    $    8,060
    Adjustments  related
      to  stock  based
      compensation  other
      and  tax                                    (3,246)      (2,039)      (1,529)      (7,964)      (9,667)
                                                    --------    --------    --------    --------    --------
    GAAP  net  income
      (loss)                                  $  (1,373)  $    1,964    $    1,785    $        767    $  (1,607)
                                                    ========    ========    ========    ========    ========

Net  income  (loss)  per
  share:
  Basic:
    Non-GAAP  net  income
      per  share                            $      0.07    $      0.16    $      0.12    $      0.34    $      0.30
    Adjustments  related
      to  stock  based
      compensation  other
      and  tax                                      (0.12)        (0.08)        (0.05)        (0.31)        (0.36)
                                                    --------    --------    --------    --------    --------
    GAAP  net  income
      (loss)  per  share              $    (0.05)  $      0.08    $      0.07    $      0.03    $    (0.06)
                                                    ========    ========    ========    ========    ========

  Diluted:
    Non-GAAP  net  income
      per  share                            $      0.07    $      0.15    $      0.12    $      0.33    $      0.29
    Adjustments  related
      to  stock  based
      compensation  other
      and  tax                                      (0.12)        (0.07)        (0.05)        (0.30)        (0.35)
                                                    --------    --------    --------    --------    --------
    GAAP  net  income
      (loss)  per  share              $    (0.05)  $      0.08    $      0.07    $      0.03    $    (0.06)
                                                    ========    ========    ========    ========    ========





                                                        ACTEL  CORPORATION

                                                CONSOLIDATED  BALANCE  SHEETS
                                                            (In  thousands)



                                                                                                                  Oct.  5,      Jan.  6,
                                                                                                                    2008            2008
                                                                                                                ---------  ---------
                                            ASSETS                                                      (Unaudited)(Audited)

Current  assets:
      Cash  and  cash  equivalents                                                        $    25,832  $    30,119
      Short-term  investments                                                                  107,559      152,609
      Accounts  receivable,  net                                                                29,588        18,116
      Inventories                                                                                          56,183        35,587
      Deferred  income  taxes                                                                      19,331        19,350
      Prepaid  expenses  and  other  current  assets                                7,757        10,259
                                                                                                                ---------  ---------
            Total  current  assets                                                                246,250      266,040
Property  and  equipment,  net                                                                35,442        25,417
Long-term  investments                                                                            11,296          6,442
Goodwill                                                                                                      37,533        30,197
Deferred  income  taxes                                                                            17,245        16,082
Other  assets,  net                                                                                    20,843        19,438
                                                                                                                ---------  ---------
                                                                                                                $  368,609  $  363,616
                                                                                                                =========  =========
                                  LIABILITIES  AND  SHAREHOLDERS'  EQUITY

Current  liabilities:
      Accounts  payable                                                                          $    22,439  $    16,972
      Accrued  compensation  and  employee  benefits                              8,541          6,181
      Accrued  licenses                                                                                  3,861          4,927
      Other  accrued  liabilities                                                                5,484          3,941
      Deferred  income  on  shipments  to  distributors                        35,972        26,109
                                                                                                                ---------  ---------
            Total  current  liabilities                                                        76,297        58,130
      Deferred  compensation  plan  liability                                          4,682          5,479
      Deferred  rent  liability                                                                    1,419          1,417
      Accrued  sabbatical  compensation                                                    3,380          3,380
      Other  long-term  liabilities,  net                                                  5,424          3,718
                                                                                                                ---------  ---------
            Total  liabilities                                                                        91,202        72,124
      Shareholders'  equity                                                                      277,407      291,492
                                                                                                                ---------  ---------
                                                                                                                $  368,609  $  363,616
                                                                                                                =========  =========


 

 

 

Contact:
Jon Anderson
Actel Corporation
(650) 318-4445





Review Article Be the first to review this article

Airbus

Featured Video
Jobs
GIS Analyst II for Air Worldwide at Boston, MA
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Upcoming Events
RoboUniverse San Diego at San Diego CA - Dec 14 - 15, 2016
DGI 2017 at QEII Centre London United Kingdom - Jan 23 - 25, 2017
Geospatial World Forum 2017 Hyderabad at Hyderabad International Convention Center P.O Bag 1101, Cyberabad Post Office Hyderabad Telangana India - Jan 23 - 25, 2017
Trimble
Teledyne Optech
University of Denver GIS Masters Degree Online
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy