MOUNTAIN VIEW, Calif., July 29, 2010 – Actel Corporation (NASDAQ: ACTL) today announced net revenues of $57.8 million for the second quarter of 2010, up 27.7 percent from the second quarter of 2009 and up 10.5 percent from the first quarter of 2010.
Actel reported net income in accordance with U.S. generally accepted accounting principles (GAAP) of $4.8 million, or $0.18 per diluted share, for the second quarter of 2010 compared with a net loss of $(45.1) million, or $(1.73) per basic and diluted share, for the second quarter of 2009 and a net income of $2.9 million, or $0.11 per diluted share, for the first quarter of 2010.
Non-GAAP net income, which excludes stock-based compensation, expenses associated with restructuring activities, and other non-recurring adjustments, was $6.6 million, or $0.25 per diluted share, for the second quarter of 2010 compared with $14 thousand, or $0.0 per diluted share, for the second quarter of 2009 and $3.8 million, or $0.14 per diluted share, for the first quarter of 2010.
During the second quarter:
- Actel announced a comprehensive motor control solution for its SmartFusion family of devices. The combination of an embedded ARM Cortex-M3, FPGA fabric, and programmable analog make SmartFusion very well suited for complex, single chip motor control applications. As part of the motor control offering, Actel announced a partnership with Trinamic, the industry leader in embedded motion control systems.
- Actel continues to grow the SmartFusion ecosystem with support from Keil, Synopsys and Aplix. The latest release of the Keil MDK-ARM Microcontroller Development Kit supports SmartFusion devices and includes set-up files, device-specific views and example projects. Synopsys’ Synplify Pro® FPGA synthesis tools have been enhanced to offer advanced support and timing optimization. With Aplix Corporation’s picoJBlend™ platform, Actel and its customers are now able to quickly develop and bring to market intelligent smart grid power management solutions.
- Continuing its commitment to the avionics industry, Actel introduced a new ARINC 429 development kit, leveraging the proven aviation flight heritage of the Core429 IP Core from Actel. The Core429 Development Kit is a hardware development platform designed to simplify the design and debug of a customer’s system incorporating the Core429 IP Core.
Appointment of Chairman
Actel also today announced that J. Daniel McCranie was appointed to serve as Chairman of the Board. Mr. McCranie is an “independent director” as defined in Rule 5605(a)(2) of The Nasdaq Global Market. The Company’s Board of Directors previously did not have a Chairman.
Of the nine publicly-traded companies for which Mr. McCranie has served on the Board of Directors, Actel will be the fourth for which he has served as Chairman. He has also served as the Chairman of Audit, Compensation, Executive, and Nominating and Corporate Governance Committees, been the Chief Executive Officer of two publicly-traded companies and the Executive Vice President of a third publicly-traded company, and managed sales, marketing, mergers and acquisitions, investor relations, and operations. Mr. McCranie’s experience as a member of the Company’s Board of Directors since 2004, in combination with his extensive executive and managerial experience in the semiconductor industry, gives him a deep understanding of the Company and its business and makes him extraordinarily well qualified to serve as Chairman of the Company’s Board of Directors.
“In accordance with good corporate governance practices, the Board decided some time ago to appoint an independent Chairman,” said Robert G. Spencer, Chairman of the Board’s Nominating and Corporate Governance Committee, “and Dan is a great choice. We are pleased that Dan has agreed to lead the Board.” Mr. Spencer served as Lead Independent Director from July 2007 until Mr. McCranie was appointed Chairman on July 27, 2010.
“I’ve known Dan for 30 years,” said John C. East, President and Chief Executive Officer. “I know him to be a guy with extraordinary capabilities. His experience and track record of success speak for themselves. We’re lucky to have him!” Mr. East announced in February 2010 that he will retire as President and Chief Executive Officer of the Company and as a member of the Board of Directors. He will remain in his current roles until a new Chief Executive Officer is in place, and will then serve as a consultant until August 2, 2011. Mr. East is participating in the ongoing search for his successor.
Business Outlook – Third Quarter 2010
The Company believes that revenues in third quarter of 2010 will be up 3 percent to 7 percent sequentially. Gross margin is expected to be about 65 percent. Operating expenses are anticipated to come in at approximately $25.5 million, which excludes an estimated $2.3 million of stock-based compensation expense, $0.2 million associated with the acquisition of Pigeon Point Systems and restructuring charges of $1.7 million. Other income is expected to be about $0.5 million. The non-GAAP tax rate for the quarter is expected to be about 30 percent. Outstanding fully diluted share count is expected to be about 26.3 million shares.
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A conference call to discuss second quarter results will be held Thursday, July 29, 2010, at 2:00 p.m. PDT. A live webcast and replay of the call will be available. Webcast and replay access information as well as financial and other statistical information can be found on Actel’s website, www.actel.com.
Actel is the leader in low power FPGAs and mixed signal FPGAs, offering the most comprehensive portfolio of system and power management solutions. Power Matters. Learn more at www.actel.com.