SOURCE: Actel Corporation

July 26, 2005 16:30 ET

Actel Announces Second Quarter 2005 Financial Results

MOUNTAIN VIEW, CA -- (MARKET WIRE) -- July 26, 2005 -- Actel Corporation (NASDAQ: ACTL) today announced net revenues of $45.3 million for the second quarter of 2005, up 4 percent from the second quarter of 2004 and up 3 percent from the first quarter of 2005.

Pro-forma net income, which excludes amortization of acquisition-related intangibles, was $2.8 million for the second quarter of 2005 compared with $3.2 million for the second quarter of 2004 and $2.0 million for the first quarter of 2005. Pro-forma earnings were $0.11 per diluted share compared with $0.12 for the second quarter of 2004 and $0.08 for the first quarter of 2005.

Including all amortization and other costs in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $2.2 million, or $0.09 per diluted share, for the second quarter of 2005 compared with net income of $2.5 million, or $0.09 per diluted share, for the second quarter of 2004 and net income of $1.4 million, or $0.06 per diluted share, for the first quarter of 2005.

Gross margin was 59.1 percent for the second quarter of 2005 compared with 61.0 percent for the second quarter of 2004 and 59.3 percent for the first quarter of 2005.

John East, president and CEO, stated, "While I'm pleased with our financial performance for the quarter, I am very excited about our landmark Actel Fusion technology announcement, which launches the era of the programmable system chip."

Business Outlook - Third Quarter 2005

The Company believes that third quarter revenues will grow sequentially in the low single digit range. Gross margin is expected to be around 59 percent. Operating expenses are anticipated to come in at $24.6 million. Other income is expected to be around $0.9 million. The tax rate for the quarter is anticipated to be approximately 15 percent. Share count is expected to be about 25.8 million shares.

A conference call to discuss second 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 September 2005.

Actel Corporation is the leader in single-chip FPGA solutions. The Company is traded on the NASDAQ National Market under the symbol ACTL and is headquartered at 2061 Stierlin Court, Mountain View, Calif., 94043-4655. For more information about Actel, visit http://www.actel.com. Telephone: 888-99-ACTEL (992-2835).

The statements under the heading "Business Outlook - Third 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-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: Actel Fusion and 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        Six Months Ended
                         July 3,   July 4,   Apr. 3,   July 3,   July 4,
                          2005      2004      2005      2005      2004
                        --------  --------  --------  --------  --------
Net revenues            $ 45,327  $ 43,688  $ 43,984  $ 89,311  $ 85,841
Costs and expenses:
  Cost of revenues        18,560    17,054    17,916    36,476    33,551
  Research and
   development            11,558    11,578    11,617    23,175    22,241
  Selling, general,
   and administrative     12,868    11,852    13,078    25,946    23,663
  Amortization of
   acquisition-related
   intangibles               552       663       558     1,110     1,326
                        --------  --------  --------  --------  --------
    Total costs
     and expenses         43,538    41,147    43,169    86,707    80,781
                        --------  --------  --------  --------  --------
Income from operations     1,789     2,541       815     2,604     5,060
Interest income and
 other, net                  926       676       780     1,706     1,332
                        --------  --------  --------  --------  --------
Income before tax
 provision                 2,715     3,217     1,595     4,310     6,392
Tax provision                508       713       158       666     1,348
                        --------  --------  --------  --------  --------
Net income                 2,207     2,504     1,437     3,644     5,044
                        ========  ========  ========  ========  ========

Net income per share:
  Basic                 $   0.09  $   0.10  $   0.06  $   0.14  $   0.20
                        ========  ========  ========  ========  ========
  Diluted               $   0.09  $   0.09  $   0.06  $   0.14  $   0.19
                        ========  ========  ========  ========  ========

Shares used in
 computing net income
 per share:
  Basic                   25,183    25,749    25,111    25,147    25,685
                        ========  ========  ========  ========  ========
  Diluted                 25,400    26,584    25,652    25,526    26,954
                        ========  ========  ========  ========  ========


                       ACTEL CORPORATION

                     PRO-FORMA INFORMATION
    EXCLUDING AMORTIZATION OF ACQUISITION-RELATED INTANGIBLES
            (in thousands, except per share amounts)

The following Pro-Forma supplemental information excludes amortization of
acquisition-related intangibles. 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        Six Months Ended
                         July 3,   July 4,   Apr. 3,   July 3,   July 4,
                          2005      2004      2005      2005      2004
                        --------  --------  --------  --------  --------
Pro-Forma operating
 costs and expenses     $ 24,426  $ 23,430  $ 24,695  $ 49,121  $ 45,904
Pro-Forma operating
 income                 $  2,341  $  3,204  $  1,373  $  3,714  $  6,386
Pro-Forma net income    $  2,759  $  3,167  $  1,995  $  4,754  $  6,370
Pro-Forma basic
 earnings per share     $   0.11  $   0.12  $   0.08  $   0.19  $   0.25
Pro-Forma diluted
 earnings per share     $   0.11  $   0.12  $   0.08  $   0.19  $   0.24


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

                             Three Months Ended        Six Months Ended
                         July 3,   July 4,   Apr. 3,   July 3,   July 4,
                          2005      2004      2005      2005      2004
                        --------  --------  --------  --------  --------
Pro-Forma net income    $  2,759  $  3,167  $  1,995  $  4,754  $  6,370
Amortization of
 acquisition-related
 intangibles                (552)     (663)     (558)   (1,110)   (1,326)
                        --------  --------  --------  --------  --------
GAAP net income         $  2,207  $  2,504  $  1,437  $  3,644  $  5,044
                        ========  ========  ========  ========  ========


                       ACTEL CORPORATION

                   CONSOLIDATED BALANCE SHEETS
                    (unaudited, in thousands)


                                                    July 3,       Jan 2,
                                                     2005          2005
                                                -----------   -----------
                           ASSETS

Current assets:
   Cash and cash equivalents                    $    11,599   $     6,405
   Short-term investments                           140,458       148,297
   Accounts receivable, net                          18,235        17,686
   Inventories, net                                  42,205        41,218
   Deferred income taxes                             22,124        22,230
   Prepaid expenses and other current assets          4,799         4,831
                                                -----------   -----------
         Total current assets                       239,420       240,667
Property and equipment, net                          24,392        22,804
Goodwill, net                                        32,142        32,142
Other assets, net                                    17,816        19,677
                                                -----------   -----------
                                                $   313,770   $   315,290
                                                ===========   ===========


               LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable                             $    11,387   $    11,397
   Accrued salaries and employee benefits             3,739         6,776
   Other accrued liabilities                          3,852         4,364
   Deferred income on shipments to distributors      24,721        23,658
                                                -----------   -----------
         Total current liabilities                   43,699        46,195
Deferred compensation plan liability                  3,343         3,258
Deferred rent liability                               1,146         1,044
                                                -----------   -----------
         Total liabilities                           48,188        50,497
Shareholders' equity                                265,582       264,793
                                                -----------   -----------
                                                $   313,770   $   315,290
                                                ===========   ===========

Contact Information

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