SOURCE: Actel Corporation

April 26, 2005 16:30 ET

Actel Announces First Quarter 2005 Financial Results

MOUNTAIN VIEW, CA -- (MARKET WIRE) -- April 26, 2005 -- Actel Corporation (NASDAQ: ACTL) today announced net revenues of $44.0 million for the first quarter of 2005, up 4 percent from the first quarter of 2004 and up 9 percent from the fourth quarter of 2004.

Pro-forma net income, which excludes acquisition-related amortization and other non-recurring items, was $2.0 million for the first quarter of 2005 compared with $3.2 million for the first quarter of 2004 and $0.6 million for the fourth quarter of 2004. Pro-forma earnings were $0.08 per diluted share compared with $0.12 for the first quarter of 2004 and $0.03 for the fourth quarter of 2004.

Including all amortization and other costs in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $1.4 million, or $0.06 per diluted share, for the first quarter of 2005 compared with net income of $2.5 million, or $0.09 per diluted share, for the first quarter of 2004 and a net loss of $3.2 million, or ($0.12) per share, for the fourth quarter of 2004.

Gross margin was 59.3 percent for the first quarter of 2005 compared with 60.9 percent for the first quarter of 2004 and 48.2 percent for the fourth quarter of 2004.

John East, president and CEO, stated, "In addition to better than expected financial results during the first quarter, we also announced our third generation flash-based programmable logic solutions. I'm very excited about the new ProASIC3 and ProASIC3E families, which include the world's lowest priced FPGA."

Business Outlook - Second Quarter 2005

The company believes that second quarter revenues will be flat to up slightly sequentially. Gross margin is expected to be about 59 percent. Operating expenses are anticipated to come in at approximately $24.7 million. Other income is expected to be about $0.8 million. The tax rate for the quarter is anticipated to be approximately 10 percent. Share count is expected to be about 25.6 million shares.

A conference call to discuss first quarter results will be held today at 2:30 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. In addition, the Company expects to issue a press release providing a financial update early in June 2005.

Actel Corporation is a supplier of innovative programmable logic solutions, including FPGAs based on antifuse and flash technologies, high-performance intellectual property (IP) cores, software development tools and design services, targeted for the high-speed communications, application-specific integrated circuit (ASIC) replacement and radiation-tolerant markets. Founded in 1985, Actel employs more than 500 people worldwide. The Company is traded on the Nasdaq National Market under the symbol ACTL and is headquartered at 2061 Stierlin Court, Mountain View, CA 94043-4655. Telephone: 888-99-ACTEL (992-2835). Internet: http://www.actel.com.

The statements under the heading "Business Outlook - Second Quarter 2005" 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 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 trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.


                    ACTEL CORPORATION

           CONSOLIDATED STATEMENTS OF INCOME
   (unaudited, in thousands except per share amounts)

                                                    Three Months Ended
                                               Apr. 3,   Apr. 4,   Jan. 2,
                                                2005      2004      2005
                                              --------  --------  --------
Net revenues                                  $ 43,984  $ 42,153  $ 40,256
Costs and expenses:
 Cost of revenues                               17,916    16,497    20,864
 Research and development                       11,617    10,663    11,160
 Selling, general, and administrative           13,078    11,811    12,969
 Amortization of acquisition-related
  intangibles                                      558       663       663
                                              --------  --------  --------
   Total costs and expenses                     43,169    39,634    45,656
                                              --------  --------  --------
Income (loss) from operations                      815     2,519    (5,400)
Interest income and other, net                     780       656       782
                                              --------  --------  --------
Income (loss) before tax (benefit) provision     1,595     3,175    (4,618)
Tax (benefit) provision                            158       635    (1,451)
                                              --------  --------  --------
Net income (loss)                             $  1,437  $  2,540  $ (3,167)
                                              ========  ========  ========

Net income (loss) per share:
 Basic                                        $   0.06  $   0.10  $  (0.12)
                                              ========  ========  ========
 Diluted                                      $   0.06  $   0.09  $  (0.12)
                                              ========  ========  ========

Shares used in computing net income
 (loss) per share:
 Basic                                          25,111    25,620    25,368
                                              ========  ========  ========
 Diluted                                        25,652    27,324    25,368
                                              ========  ========  ========

                           PRO-FORMA INFORMATION
                  EXCLUDING ACQUISITION-RELATED AMORTIZATION
                              AND OTHER ITEMS
                    (in thousands, except per share amounts)
The following Pro-Forma supplemental information adjusts for the effect of acquisition-related amortization and other non-operating items. Not all acquisition-related amortization charges are deductible for income tax purposes. The tax implications of these items have been included in the determination of pro forma net income. This pro forma information is not prepared in accordance with generally accepted accounting principles (GAAP).

                                                    Three Months Ended
                                               Apr. 3,   Apr. 4,   Jan. 2,
                                                2005      2004      2005
                                              --------  --------  --------
Pro-Forma operating costs and expenses        $ 24,695  $ 22,474  $ 24,129
Pro-Forma operating income (loss)             $  1,373  $  3,182  $ (1,586)
Pro-Forma net income                          $  1,995  $  3,203  $    647
Pro-Forma basic earnings per share            $   0.08  $   0.13  $   0.03
Pro-Forma diluted earnings per share          $   0.08  $   0.12  $   0.03


                  PRO-FORMA TO GAAP RECONCILIATION
                     (unaudited, in thousands)

                                                    Three Months Ended
                                               Apr. 3,   Apr. 4,   Jan. 2,
                                                2005      2004      2005
                                              --------  --------  --------
Pro-Forma net income                          $  1,995  $  3,203  $    647
Amortization of acquisition-related
 intangibles                                      (558)     (663)     (663)
RTSX-S testing costs and inventory write-off         -         -    (3,151)
                                              --------  --------  --------
GAAP net income (loss)                        $  1,437  $  2,540  $ (3,167)
                                              ========  ========  ========

                         ACTEL CORPORATION

                  CONSOLIDATED BALANCE SHEETS
                   (unaudited, in thousands)


                                                   Apr. 3,     Jan. 2,
                                                    2005        2005
                                                ----------   ----------
              ASSETS

Current assets:
 Cash and cash equivalents                      $    7,449   $    6,405
 Short-term investments                            138,877      148,297
 Accounts receivable, net                           22,060       17,686
 Inventories, net                                   44,844       41,218
 Deferred income taxes                              22,124       22,230
 Prepaid expenses and other current assets           5,235        4,831
                                                ----------   ----------
   Total current assets                            240,589      240,667
Property and equipment, net                         22,575       22,804
Goodwill, net                                       32,142       32,142
Other assets, net                                   18,595       19,677
                                                ----------   ----------
                                                $  313,901   $  315,290
                                                ==========   ==========

        LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
 Accounts payable                               $   11,120   $   11,397
 Accrued salaries and employee benefits              4,797        6,776
 Other accrued liabilities                           3,668        4,364
 Deferred income on shipments to distributors       29,244       23,658
                                                ----------   ----------
   Total current liabilities                        48,829       46,195
Deferred compensation plan liability                 3,238        3,258
Deferred rent liability                              1,097        1,044
                                                ----------   ----------
   Total liabilities                                53,164       50,497
Shareholders' equity                               260,737      264,793
                                                ----------   ----------
                                                $  313,901   $  315,290
                                                ==========   ==========

Contact Information

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