Actel Announces First Quarter 2008 Financial Results

MOUNTAIN VIEW, CA -- (MARKET WIRE) -- Apr 29, 2008 -- Actel Corporation (NASDAQ: ACTL) today announced net revenues of $54.8 million for the first quarter of 2008, up 6 percent from the fourth quarter of 2007 and up 13 percent from the first quarter of 2007.

Non-GAAP net income, which excludes stock-based compensation, option restatement expenses, and other nonrecurring adjustments, was $2.9 million for the first quarter of 2008 compared with $2.6 million for the fourth quarter of 2007 and $2.1 million for the first quarter of 2007. Non-GAAP earnings were $0.11 per diluted share for the first quarter of 2008 compared with $0.10 for the fourth quarter of 2007 and $0.08 for the first quarter of 2007.

Including stock-based compensation, option restatement expenses and other adjustments in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $0.2 million, or $0.01 per diluted share, for the first quarter of 2008 compared with a net loss of $1.3 million, or ($0.05) per basic share, for the fourth quarter of 2007 and net loss of $0.7 million, or ($0.03) per basic share, for the first quarter of 2007.

Gross margin was 58.5 percent for the first quarter of 2008 compared with 55.0 percent for the fourth quarter of 2007 and 59.2 percent for the first quarter of 2007.

A conference call to discuss first quarter results will be held Tuesday, April 29, 2008, 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.

This release includes non-GAAP net income, non-GAAP net income per share data and other non-GAAP line items from the Condensed Consolidated Statements of Operations, including total costs and expenses, income from operations, and income before tax provision. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. These non-GAAP adjustments are provided to enhance the user's overall understanding of our operating performance. Actel believes that the presentation of these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to both management and investors regarding financial and business trends relating to Actel's financial condition and results of operations, in particular by excluding certain expense and income items that we believe are not indicative of our core operating results. Actel believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting.

Business Outlook - Second Quarter 2008

The Company believes that second quarter 2008 revenues will increase sequentially five to nine percent. Gross margin is expected to be about 58 or 59 percent. Operating expenses are anticipated to come in at approximately $31.1 million, which excludes an estimated $1.9 million of stock-based compensation expense. Other income is expected to be about $1.7 million. The tax rate for the quarter is expected to be about 30 percent. Outstanding fully diluted share count is expected to be about 25.9 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 6,000,000 shares under the program, and 5,311,558 shares of Common Stock have been repurchased. During the fiscal quarter ended April 6, 2008, the Company repurchased 1,922,361 shares at a total cost of $24.8 million. The Company repurchases shares of its Common Stock from time to time as market and business conditions warrant.

About Actel

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).

The statements in the paragraph under the heading "Business Outlook - Second Quarter 2008" 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 or 10-K, 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: The Actel name and logo are registered trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.

                            ACTEL CORPORATION

              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Unaudited, in thousands except per share amounts)


                                                   Three Months Ended
                                              ----------------------------
                                               Apr. 6,   Jan. 6,   Apr. 1,
                                                2008      2008      2007
                                              --------  --------  --------
Net revenues                                  $ 54,756  $ 51,769  $ 48,604
Costs and expenses:
   Cost of revenues                             22,738    23,291    19,838
   Research and development                     16,709    15,475    15,719
   Selling, general, and administrative         16,780    16,768    16,085
                                              --------  --------  --------
      Total costs and expenses                  56,227    55,534    51,642
                                                                                --------    --------    --------
Loss  from  operations                                                        (1,471)      (3,765)      (3,038)
Interest  income  and  other,  net                                      1,932          2,231          2,128
                                                                                            --------    --------    --------
Income  (loss)  before  tax  provision  (benefit)              461        (1,534)          (910)
Tax  provision  (benefit)                                                        285            (237)          (163)
                                                                                            --------    --------    --------
Net  income  (loss)                                                          $        176    $  (1,297)  $      (747)
                                                                                            ========    ========    ========

Net  income  (loss)  per  share:
      Basic                                                                            $      0.01    $    (0.05)  $    (0.03)
                                                                                            ========    ========    ========
      Diluted                                                                        $      0.01    $    (0.05)  $    (0.03)
                                                                                            ========    ========    ========

Shares  used  in  computing  net  income  (loss)
  per  share:
      Basic                                                                                26,487        27,026        26,747
                                                                                            ========    ========    ========
      Diluted                                                                            26,677        27,026        26,747
                                                                                            ========    ========    ========





                RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP
                                                STATEMENTS  OF  OPERATIONS
                                                (Unaudited,  in  thousands)


                                                                                                      Three  Months  Ended
                                                                                            -----------------------------
                                                                                              Apr.  6,      Jan.  6,      Apr.  1,
                                                                                                2008            2008            2007
                                                                                            ---------  ---------  ---------

Cost  and  expenses:
      Non-GAAP  cost  of  revenues                                    $    22,738  $    21,074  $    19,838
      Adjustments  related  to  inventory  reserve                    --          2,217                --
                                                                                            ---------  ---------  ---------
      GAAP  cost  of  revenues                                            $    22,738  $    23,291  $    19,838
                                                                                            =========  =========  =========

      Non-GAAP  research  and  development                    $    15,683  $    14,660  $    14,634
      Adjustments  related  to  stock  based
        compensation                                                                    1,026              815          1,085
                                                                                            ---------  ---------  ---------
      GAAP  research  and  development                            $    16,709  $    15,475  $    15,719
                                                                                            =========  =========  =========

      Non-GAAP  selling,  general  and
        administrative                                                        $    14,189  $    14,564  $    13,239
      Adjustments  related  to  stock  based
        compensation  and  option  investigation                  2,591          2,204          2,846
                                                                                            ---------  ---------  ---------
      GAAP  selling,  general  and  administrative      $    16,780  $    16,768  $    16,085
                                                                                            =========  =========  =========





                RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP
                                                STATEMENTS  OF  OPERATIONS
                                                (Unaudited,  in  thousands)


                                                                                                      Three  Months  Ended
                                                                                            ----------------------------
                                                                                            Apr.  6,      Jan.  6,      Apr.  1,
                                                                                                2008            2008            2007
                                                                                            --------    --------    --------

Loss  from  operations:
      Non-GAAP  income  from  operations                        $    2,146    $    1,471    $        893
      Adjustments  related  to  stock  based
        compensation,  option  investigation  and
        other                                                                              (3,617)      (5,236)      (3,931)
                                                                                            --------    --------    --------
      GAAP  loss  from  operations                                    $  (1,471)  $  (3,765)  $  (3,038)
                                                                                            ========    ========    ========

Income  (loss)  before  tax  provision:
      Non-GAAP  income  before  tax  provision              $    4,078    $    3,702    $    3,021
      Adjustments  related  to  stock  based
        compensation,  option  investigation  and
        other                                                                              (3,617)      (5,236)      (3,931)
                                                                                            --------    --------    --------
      GAAP  income  (loss)  before  tax  provision        $        461    $  (1,534)  $      (910)
                                                                                            ========    ========    ========

Net  income  (loss):
      Non-GAAP  net  income                                                $    2,855    $    2,591    $    2,115
      Adjustments  related  to  stock  based
        compensation,  option  investigation,  other
        and  tax                                                                          (2,679)      (3,888)      (2,862)
                                                                                            --------    --------    --------
      GAAP  net  income  (loss)                                          $        176    $  (1,297)  $      (747)
                                                                                            ========    ========    ========





                RECONCILIATION  OF  NON-GAAP  STATEMENTS  OF  OPERATIONS  TO  GAAP
                                                  STATEMENTS  OF  OPERATIONS
                        (Unaudited,  in  thousands  except  per  share  amounts)


                                                                                                      Three  Months  Ended
                                                                                            ----------------------------
                                                                                            Apr.  6,      Jan.  6,      Apr.  1,
                                                                                                2008            2008            2007
                                                                                            --------    --------    --------

Net  income  (loss)  per  share:
      Basic:
            Non-GAAP  net  income  per  share                      $      0.11    $      0.10    $      0.08
            Adjustments  related  to  stock  based
              compensation,  option  investigation,
              other  and  tax                                                          (0.10)        (0.15)        (0.11)
                                                                                            --------    --------    --------
            GAAP  net  income  (loss)  per  share                $      0.01    $    (0.05)  $    (0.03)
                                                                                            ========    ========    ========

      Diluted:
            Non-GAAP  net  income  per  share                      $      0.11    $      0.10    $      0.08
            Adjustments  related  to  stock  based
              compensation,  option  investigation,
              other  and  tax                                                          (0.10)        (0.15)        (0.11)
                                                                                            --------    --------    --------
            GAAP  net  income  (loss)  per  share                $      0.01    $    (0.05)  $    (0.03)
                                                                                            ========    ========    ========





                                                        ACTEL  CORPORATION

                                                CONSOLIDATED  BALANCE  SHEETS
                                                            (In  thousands)


                                                                                                            Apr.  6,          Jan.  6,
                                                                                                              2008                2008
                                                                                                        -----------  -----------
                                                ASSETS                                            (Unaudited)    (Audited)
Current  assets:
      Cash  and  cash  equivalents                                                $          8,827  $        30,119
      Short-term  investments                                                              150,238          152,609
      Accounts  receivable,  net                                                            26,338            18,116
      Inventories                                                                                      37,259            35,587
      Deferred  income  taxes                                                                  19,331            19,350
      Prepaid  expenses  and  other  current  assets                            9,465            10,259
                                                                                                        -----------  -----------
            Total  current  assets                                                            251,458          266,040
Property  and  equipment,  net                                                            28,208            25,417
Long-term  investments                                                                          3,626              6,442
Goodwill                                                                                                  30,032            30,197
Deferred  income  taxes                                                                        15,947            16,082
Other  assets,  net                                                                                22,348            19,438
                                                                                                        -----------  -----------
                                                                                                        $      351,619  $      363,616
                                                                                                        ===========  ===========
                    LIABILITIES  AND  SHAREHOLDERS'  EQUITY
Current  liabilities:
      Accounts  payable                                                                  $        19,235  $        16,972
      Accrued  compensation  and  employee  benefits                          7,410              6,181
      Accrued  licenses                                                                              4,458              4,927
      Other  accrued  liabilities                                                            3,117              3,941
      Deferred  income  on  shipments  to  distributors                    32,712            26,109
                                                                                                        -----------  -----------
            Total  current  liabilities                                                    66,932            58,130
      Deferred  compensation  plan  liability                                      5,098              5,479
      Deferred  rent  liability                                                                1,396              1,417
      Accrued  sabbatical  compensation                                                3,380              3,380
      Other  long-term  liabilities,  net                                              5,165              3,718
                                                                                                        -----------  -----------
            Total  liabilities                                                                    81,971            72,124
      Shareholders'  equity                                                                  269,648          291,492
                                                                                                        -----------  -----------
                                                                                                        $      351,619  $      363,616
                                                                                                        ===========  ===========
 

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





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