Mountain View, Calif. -- February 20, 2008 -- Actel Corporation today announced net revenues of $51.1 million for the fourth quarter of 2007, up 6 percent from the fourth quarter of 2006 and up 7 percent from the third quarter of 2007.
Non-GAAP net income, which excludes stock-based compensation, option investigation expenses and other adjustments, was $2.3 million for the fourth quarter of 2007 compared with $4.4 million for the fourth quarter of 2006 and $3.3 million for the third quarter of 2007. Non-GAAP earnings were $0.08 per diluted share for the fourth quarter of 2007 compared with $0.16 for the fourth quarter of 2006 and $0.12 for the third quarter of 2007.
Including stock-based compensation, option investigation expenses and other adjustments in accordance with generally accepted accounting principles (GAAP), Actel reported a net loss of $1.6 million, or ($0.06) per basic share, for the fourth quarter of 2007 compared with a net loss of $7.5 million, or ($0.28) per basic share, for the fourth quarter of 2006 and net income of $1.8 million, or $0.07 per diluted share, for the third quarter of 2007.
Gross margin was 54.6 percent for the fourth quarter of 2007 compared with 57.3 percent for the fourth quarter of 2006 and 59.7 percent for the third quarter of 2007.
Business Outlook – First Quarter 2008
The Company believes that first quarter 2008 revenues will increase sequentially two percent to seven percent. Gross margin is expected to be about 61 percent. Operating expenses are anticipated to come in at approximately $31.4 million, which excludes an estimated $2.0 million of stock-based compensation expense and $0.5 million of stock option restatement expense. Other income is expected to be about $2.3 million. The tax rate for the quarter is expected to be around 30 percent. Outstanding fully diluted share count is expected to be about 27.3 million shares.
Common Stock Repurchase Program
The Company’s stock repurchase program was instituted in 1998 for the purpose of replenishing some or all of the shares of Common Stock issued upon exercise of stock options and in connection with other stock compensation plans. The overall objective of the program is to reduce or eliminate earnings per share dilution caused by the issuance of such additional shares. Repurchases may be made in the open market or in privately negotiated transactions. To date, Actel’s Board of Directors has authorized the repurchase of 5,000,000 shares under the program, and 3,389,197 shares of Common Stock have been repurchased on the open market.
“We continue to believe that our Common Stock repurchase program provides an excellent opportunity to increase shareholder value,” said John C. East, Actel president and CEO. “While any future stock repurchases are subject to market conditions and the consideration of alternative investment opportunities available from time to time, we remain committed to preserving and maximizing shareholder value.” The Company has remaining authority to repurchase 1,610,803 shares under the program.
Attacking power consumption from both the chip and the system levels, Actel Corporation’s innovative FPGAs and programmable system chip solutions enable power-efficient design. 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).