Mountain View, Calif. – January 31, 2006 - Actel Corporation (NASDAQ: ACTL) today announced net revenues of $43.7 million for the fourth quarter of 2005, up 9 percent from the fourth quarter of 2004 and down 6 percent from the third quarter of 2005. For the full fiscal year, net revenues were $179.4 million, up 8 percent from fiscal 2004.
Non-GAAP net income, which excludes amortization of acquisition-related intangibles and other costs, was $1.4 million for the fourth quarter of 2005 compared with $0.6 million for the fourth quarter of 2004 and $2.8 million for the third quarter of 2005. Non-GAAP earnings were $0.06 per diluted share for the fourth quarter of 2005 compared with $0.03 for the fourth quarter of 2004 and $0.11 for the third quarter of 2005. Non-GAAP net income was $8.9 million, or $0.35 per diluted share, for the 2005 fiscal year compared with $8.2 million, or $0.31 per diluted share, for the 2004 fiscal year.
Including all amortization and other costs in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $1.2 million, or $0.05 per diluted share, for the fourth quarter of 2005 compared with a net loss of $3.2 million, or ($0.12) per share, for the fourth quarter of 2004 and net income of $2.2 million, or $0.09 per diluted share, for the third quarter of 2005. Net income in accordance with GAAP was $7.0 million, or $0.28 per diluted share, for the 2005 fiscal year compared with $2.4 million, or $0.09 per diluted share, for the 2004 fiscal year.
Gross margin was 59.1 percent for the fourth quarter of 2005 compared with 48.2 percent for the fourth quarter of 2004 and 59.0 percent for the third quarter of 2005. Gross margin was 59.1 percent for the 2005 fiscal year compared with 57.4 percent for the 2004 fiscal year.
During the fourth quarter, the company announced the immediate availability of the Actel Fusion™ Programmable System Chip (PSC), the world’s first mixed-signal field programmable gate array (FPGA) family. By integrating mixed-signal analog, flash memory, and FPGA fabric in a monolithic PSC, the Actel Fusion devices bring the benefits of programmable logic to many application areas (including power management, smart battery charging, clock generation and management, and motor control) that until now have only been served by either discrete analog components or mixed-signal ASIC solutions. In addition, the company announced the availability of the industry’s first fully qualified MIL-STD 883B flash-based FPGAs. Actel’s reprogrammable, nonvolatile ProASICPLUS FPGAs passed extensive testing at extreme conditions to achieve compliance with MIL-STD 883 Class B and qualify for use in high-reliability defense applications.
Business Outlook – First Quarter 2006
The company believes that first quarter revenues will increase sequentially in the 2 percent to 5 percent range. Gross margin is expected to be about 58 percent. Operating expenses are anticipated to come in at approximately $29.8 million, which includes an estimated $3.3 million of stock-based compensation expense. Other income is expected to be about $1.2 million. The tax provision for the quarter is expected to be approximately $1.0 – 1.2 million. Outstanding share count is expected to be about 25.7 million shares; fully diluted share count is expected to be about 26.7 million shares.
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A conference call to discuss fourth quarter results will be held Tuesday, January 31, 2006, 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. In addition, the company expects to issue a press release providing a financial update in early March, 2006.
Actel Corporation is the leader in single-chip FPGA solutions. The company trades 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).