-- The Company believes that second quarter 2008 revenues will increase sequentially five to nine percent. Gross margin is expected to be about 58 to 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.
Actel also announced the approval by its Board of Directors of authority to repurchase up to 1,000,000 more shares of Common Stock under the Company's stock repurchase program. This action will permit the Company to continue repurchasing shares of its Common Stock from time to time as market and business conditions warrant. Including the 1,000,000 shares most recently authorized, the Company has remaining authority to repurchase 1,688,442 shares under the program.
The 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 7,000,000 shares under the program, and 5,311,558 shares of Common Stock have been repurchased.
"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."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements in this press release regarding our updated business guidance and intentions are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated in the forward-looking statements. Risk factors that make it difficult for us to accurately predict quarterly revenues include 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. Any failure to meet expectations could cause the price of our stock to decline significantly. We do not assume, and expressly disclaim, any duty to update the forward-looking statements or risk factors.
Attacking power consumption from both the chip and the system levels, Actel power-smart programmable solutions enable power-efficient design. The company is traded 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-ACTL (992-2835).
Editor's Note: The Actel name and logo are trademarks of Actel Corporation.
Contact: Jon Anderson Actel Corporation (650) 318-4445