Actel Announces First Quarter 2008 Financial Results

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.