Actel Corporation Announces Financial Results for First Quarter 1995.SUNNYVALE, Calif.--(BUSINESS WIRE)--April 27, 1995--Actel Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACTL ACTL American College of Trial Lawyers (Irvine, California) ACTL Access Carrier Terminal Location ACTL Activation Library ACTL Automated Compatibility Test Laboratory ACTL Association Cultural Turkey-Luxembourg ) today announced financial results for its first quarter, which ended April 2, 1995. In the quarter, Actel generated net revenues of $19.5 million and net income of $332,000, or 2 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , before giving effect to a one-time write-off of in-process research and development associated with Actel's acquisition of the field programmable gate array See FPGA. (FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. ) business of Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. Incorporated (TI). After giving effect to the one-time write-off and associated tax benefit, Actel generated a net loss of $9.6 million, or a net loss of 56 cents per share. For comparative purposes, net revenues in the first quarter of 1994 were $16.1 million and net income was $1.2 million, or 7 cents per share, and net revenues in the fourth quarter of 1994 were $20.7 million and net income was $2.3 million, or 13 cents per share. The results for the first quarter of 1995 represent an increase in net revenues of 21 percent over the first quarter of 1994 and a decline of 6 percent compared with the fourth quarter of 1994. Actel is the leading supplier of antifuse-based FPGAs and associated development systems. FPGAs are standard or "off the shelf" logic devices that electronic system manufacturers customize for their products "in the field" by using computer-aided engineering See CAE. Computer-aided engineering Any use of computer software to solve engineering problems. With the improvement of graphics displays, engineering workstations, and graphics standards, computer-aided engineering (CAE) has come to mean the computer (CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. ) design tools and programmers This is a list of programmers notable for their contributions to software, either as original author or architect, or for later additions. See also: Game programmer, List of computer scientists . FPGAs accounted for 89 percent of Actel's net revenues in the first quarter of 1995. Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of FPGAs in the quarter increased by 30% compared with the first quarter of 1994, while net revenues from the sale of FPGAs increased by 21 percent and the overall average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. (ASPs) of FPGAs declined by 7 percent. FPGA unit volume sales in the first quarter declined by 9 percent compared with the fourth quarter of 1994, while FPGA revenues and ASPs declined by 10 percent and 1 percent, respectively. John C. East, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We anticipated that there would be three phases in our acquisition of TI's FPGA business. The first phase was the balance of Q1, which included the period between announcement of the acquisition on February 12th and the closing of the acquisition on March 31st. The second or transitional phase will include all of Q2 and at least part of Q3, during which we will pick up TI's business. By the third or final phase, we will have completed our assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of TI's FPGA business." East continued, "When we announced the acquisition, we identified a number of factors, both good and bad, that might affect us in Q1. As it turned out, the ASPs on our second-sourced products were down substantially in Q1 as a result of severe price competition at the buyer's desk. In addition, TI's sales of Actel products were up significantly in Q1. We believe, in fact, that TI's sales of FPGAs were up sequentially more than our sales were down, indicating that sales of Actel-architecture products were up in Q1, despite double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" price erosion." "In the long run," East concluded, "the division of sales between Actel and TI in Q1 just won't matter. It doesn't change the fundamentals of our business. What is important going forward is that we are picking up TI's customer base and that we won't be facing price competition at the buyer's desk." Actel believes that its sales will increase significantly, reflecting the addition of TI's business, during the transition phase. Gross margins will be burdened during the transition phase, however, by Actel's commitment to honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. TI's backlog prices, which are not yet fully supported by Actel's cost reduction efforts. Actel also anticipates that research and development (R&D) spending and selling, general, and administrative (SG&A) spending will increase to support the increased levels of operations, but that such expenditures will decline as a percentage of net revenues. During the transition phase there may also be inventory or other issues related to the assimilation of TI's FPGA business by Actel, any of which could have a materially adverse effect on operating results. Actel's quarterly operating results are also subject to a variety of risks characteristic of the semiconductor industry, including fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. demand, intense competition, rapid technological change and related intellectual property issues, wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. and other supply shortages, and booking and shipment uncertainties. Historically, the semiconductor industry has experienced significant volatility, short product life cycles, and price erosion. Given the intensity of the research and development being done by competitors, Actel expects competition from new products based on emerging or existing technologies as well as from existing programmable logic See PLD. products and application specific integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. . Actel is actively developing new products that it believes will meet future customer needs, but no assurance can be given that its efforts will be successful. The failure of Actel to enforce its own patents and copyrights or to protect its trade secrets, or to obtain licenses on acceptable terms for any technologies used by Actel that are owned by third parties, and any litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. or other intellectual property matters could have a materially adverse effect on Actel's financial condition or ability to compete successfully. Although Actel's products are manufactured using a customized process, Actel does not operate its own manufacturing facility and has from time to time experienced manufacturing problems, including difficulties in bringing up new processes and foundries. In addition, Actel typically generates a large percentage of its quarterly revenues from orders received during the quarter and shipped in the final weeks of the quarter, which makes it difficult to accurately estimate quarterly revenues. Fluctuations in Actel's operating results could occur in the future due to any of these factors or many others, including general economic conditions or other conditions specific to the semiconductor industry. Actel's antifuse FPGAs are used by designers of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. , industrial, computer and space systems to differentiate their products, reduce time to market and development costs, and improve system size and performance. The Company is located at 955 East Arques Avenue, Sunnyvale, CA 94086. Telephone: 408/739-1010. -0- Note to Editors: WORLD WIDE WEB: Press announcements and other information about Actel are available on the Internet via the World Wide Web. Type http://www.actel.com at the URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. prompt.
ACTEL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Apr. 2, Apr. 3, Jan. 1,
1995 1994 1995
-----------------------------
Net revenues $19,518 $16,118 $20,732 Cost and Expenses: Cost of revenues 9,624 7,129 9,308 Research and development 4,443 3,432 3,752 Selling, general and administrative 5,367 4,356 5,180
In-process research
and development 16,600 - -
------ ------ ------
Operating costs and
expenses 36,034 14,917 18,240
------ ------ ------
Operating income (loss) (16,516) 1,201 2,492
Interest and
other income, net 248 172 222
------ ------ ------
Income (loss) before
tax provision (16,268) 1,373 2,714
Provision for
income taxes (6,640) 206 408
------ ------ ------
Net income (loss) $(9,628) $ 1,167 $ 2,306
====== ====== ======
Net income (loss)
per share $ (.56) $ .07 $ .13
====== ====== ======
Shares used in
computing net income
(loss) per share 17,200 17,596 17,562
====== ====== ======
ACTEL CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
Apr. 2, Jan. 1,
1995 1995
Current assets Cash, cash equivalents, and short-term investments $18,434 $25,963 Accounts receivable 14,584 13,232 Inventories 18,450 12,931
Other current assets 5,801 2,317
------- -------
Total current assets 57,269 54,443
Property and equipment, net 9,733 9,278
Other assets 18,195 4,134
------- -------
Total assets $85,197 $67,855
======= =======
Current liabilities Accounts payable, accrued liabilities, and deferred income $21,755 $17,984
Current obligations under a line
of credit and capital leases 4,546 488
------- -------
Total current liabilities 26,301 18,472
Long-term obligations and redeemable convertible preferred stock 18,202 72
Shareholders' equity 40,694 49,311
------- -------
Total liabilities and
shareholders' equity $85,197 $67,855
======= =======
CONTACT: Actel Corporation, Sunnyvale Buford Barr, 408/522-4368, Press Kirk A. Ross, 408/522-4213, Financial REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or |
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