Actel Corp. (ACTL, Financial) filed Quarterly Report for the period ended 2009-04-05.
Actel designs develops and markets field programmable gate array and associated development system software and programming hardware. Their product line consist of ten families of antifuse-based FPGAs; Designer Series Development System DeskTOP and CoreHDL software; SiliconExplorer debugging and diagnostic tools; Activator and Silicon Sculptor device programmers; and sockets. Actel Corp. has a market cap of $274.1 million; its shares were traded at around $10.51 with a P/E ratio of 47.7 and P/S ratio of 1.3.
SG&A expenses were $13.5 million, or 28% of net revenues for the first quarter of 2009 compared with $15.7 million, or 30% of net revenue for the fourth quarter of 2008 and $16.8 million, or 31% of net revenues for the first quarter of 2008. SG&A expenses decreased in the first quarter of 2009 compared with fourth quarter of 2008 due to declines in bonus and commission expenses, travel, professional and outside service costs. SG&A expenses decreased 20% in the first quarter of 2009 compared with the first quarter of 2008. SG&A expenses for first quarter 2008 contained costs associated with the Companys stock option investigation and restatement of $1.6 million, including $1.0 million of compensation expenses associated with expired options. Recognition of stock-based compensation expense under SFAS 123R was $0.6 million for the three month period ended April 5, 2009, compared with $1.4 million for the fourth quarter of 2008 and $1.0 million for the first quarter of 2008.
Our net inventories were $56.0 million as of the first quarter of 2009 compared with $60.6 million at the end of 2008. This resulted in inventory days decreasing from 256 days at the end of 2008 to 246 days at the end of the first quarter of 2009. Net inventory decreased by $4.6 million due primarily to increased shipment of the Flash related ProASIC3 product family and a concerted effort to reduce our wafer starts for Flash products to the lowest levels practicable. We will continue to restrict Flash wafer starts based on inventory levels and forecast sales of Flash products. However, in order to preserve our relationships with our foundries, the Company must continue to build certain minimum levels of Flash products during 2009 and thereafter, so an extended period of time will probably be necessary in order to draw down inventory levels closer to historical norms. We believe our Flash products are still attractive to our targeted customer base. We continue to focus our efforts on growing the Flash business and are aggressively marketing our Flash products in an effort to reduce our inventory. This may include certain promotional pricing for large volume orders (sometimes below our cost), which may negatively affect our gross margins. We are also monitoring market trends and significant events that may have an adverse effect on the carrying value of our inventory. Based on the information available during the first quarter of 2009, we incurred net charges of $2.1 million for excess and slow moving inventories and lower of cost or market issues. This includes a charge of $1.5 million associated with certain low yield wafer issues. If our business outlook changes in the future or if the current economic downturn continues or worsens, the Company may be required to establish reserves for a portion of the Flash inventory which could have a materially adverse affect on our business, financial condition, and/or results of operations.
Cash used in operating activities was $6.5 million for the three months ended April 5, 2009. Uses of cash included a net loss of $3.0 million, an increase in accounts receivable of $10.2 million and in prepaid expenses and other current assets of $1.0 million and a decrease in accounts payable, accrued compensation and employee benefits, and other accrued liabilities of $9.7 million. These uses of cash were partially offset by cash provided by operating activities relating to non-cash adjustments for depreciation and stock based compensation costs of approximately $5.2 million, decreases in inventories of $4.6 million, decreases in other assets of $1.2 million and an increase in deferred income on sales to distributors of $6.2 million.
Capital expenditures of $2.1 million were offset by net sales and maturities of available-for-sale securities of $2.9 million which resulted in net cash provided by investing activities of approximately $0.9 million for the three months ended April 5, 2009. Net cash provided by financing activities of $2.0 million for the three months ended April 5, 2009 relates mainly to issuance of common stock under employee stock plans net of tax withholdings.
Cash provided by operating activities was $3.5 million for the three months ended April 6, 2008. Cash was provided by net income of $0.2 million, non-cash adjustments relating to depreciation, amortization and stock based compensation costs of approximately $4.8 million, an increase in accounts payable, accrued compensation and employee benefits, and other accrued liabilities of $3.6 million and an increase in deferred income to distributors of $6.6 million. These sources of cash were partially offset by an increase in accounts receivable of $8.2 million, an increase inventory of $1.7 million and an increase in other assets of $2.7 million. Net cash used by investing activities was $0.7 million. Purchases of property and equipment of $5.4 million was partially offset by net sales and maturities of available-for-sale securities of $5.1 million. Net cash used by financing activities of $24.1 million for the first three months of fiscal 2008 relates mainly to cash used to repurchase stock of $24.8 million partially offset by issuance of common stock under employee stock plans of $1.0 million.
Read the The complete ReportACTL is in the portfolios of NWQ Managers of NWQ Investment Management Co.
Actel designs develops and markets field programmable gate array and associated development system software and programming hardware. Their product line consist of ten families of antifuse-based FPGAs; Designer Series Development System DeskTOP and CoreHDL software; SiliconExplorer debugging and diagnostic tools; Activator and Silicon Sculptor device programmers; and sockets. Actel Corp. has a market cap of $274.1 million; its shares were traded at around $10.51 with a P/E ratio of 47.7 and P/S ratio of 1.3.
Highlight of Business Operations:
R&D expenditures were $16.4 million, or 34% of net revenues for the first quarter of 2009 compared with $14.9 million, or 28% of net revenues for the fourth quarter of 2008 and $16.7 million, or 31% of net revenues for the first quarter of 2008. R&D spending increased in the first quarter of 2009 compared with the fourth quarter of 2008 due to increases in payroll taxes, outsourced engineering charges and a reduction in grant reimbursements. Recognition of stock-based compensation expense under SFAS 123R was $0.9 million for the three month period ended April 5, 2009, compared with $1.0 million for the fourth quarter of 2008 and $1.0 million for the first quarter of 2008.SG&A expenses were $13.5 million, or 28% of net revenues for the first quarter of 2009 compared with $15.7 million, or 30% of net revenue for the fourth quarter of 2008 and $16.8 million, or 31% of net revenues for the first quarter of 2008. SG&A expenses decreased in the first quarter of 2009 compared with fourth quarter of 2008 due to declines in bonus and commission expenses, travel, professional and outside service costs. SG&A expenses decreased 20% in the first quarter of 2009 compared with the first quarter of 2008. SG&A expenses for first quarter 2008 contained costs associated with the Companys stock option investigation and restatement of $1.6 million, including $1.0 million of compensation expenses associated with expired options. Recognition of stock-based compensation expense under SFAS 123R was $0.6 million for the three month period ended April 5, 2009, compared with $1.4 million for the fourth quarter of 2008 and $1.0 million for the first quarter of 2008.
Our net inventories were $56.0 million as of the first quarter of 2009 compared with $60.6 million at the end of 2008. This resulted in inventory days decreasing from 256 days at the end of 2008 to 246 days at the end of the first quarter of 2009. Net inventory decreased by $4.6 million due primarily to increased shipment of the Flash related ProASIC3 product family and a concerted effort to reduce our wafer starts for Flash products to the lowest levels practicable. We will continue to restrict Flash wafer starts based on inventory levels and forecast sales of Flash products. However, in order to preserve our relationships with our foundries, the Company must continue to build certain minimum levels of Flash products during 2009 and thereafter, so an extended period of time will probably be necessary in order to draw down inventory levels closer to historical norms. We believe our Flash products are still attractive to our targeted customer base. We continue to focus our efforts on growing the Flash business and are aggressively marketing our Flash products in an effort to reduce our inventory. This may include certain promotional pricing for large volume orders (sometimes below our cost), which may negatively affect our gross margins. We are also monitoring market trends and significant events that may have an adverse effect on the carrying value of our inventory. Based on the information available during the first quarter of 2009, we incurred net charges of $2.1 million for excess and slow moving inventories and lower of cost or market issues. This includes a charge of $1.5 million associated with certain low yield wafer issues. If our business outlook changes in the future or if the current economic downturn continues or worsens, the Company may be required to establish reserves for a portion of the Flash inventory which could have a materially adverse affect on our business, financial condition, and/or results of operations.
Cash used in operating activities was $6.5 million for the three months ended April 5, 2009. Uses of cash included a net loss of $3.0 million, an increase in accounts receivable of $10.2 million and in prepaid expenses and other current assets of $1.0 million and a decrease in accounts payable, accrued compensation and employee benefits, and other accrued liabilities of $9.7 million. These uses of cash were partially offset by cash provided by operating activities relating to non-cash adjustments for depreciation and stock based compensation costs of approximately $5.2 million, decreases in inventories of $4.6 million, decreases in other assets of $1.2 million and an increase in deferred income on sales to distributors of $6.2 million.
Capital expenditures of $2.1 million were offset by net sales and maturities of available-for-sale securities of $2.9 million which resulted in net cash provided by investing activities of approximately $0.9 million for the three months ended April 5, 2009. Net cash provided by financing activities of $2.0 million for the three months ended April 5, 2009 relates mainly to issuance of common stock under employee stock plans net of tax withholdings.
Cash provided by operating activities was $3.5 million for the three months ended April 6, 2008. Cash was provided by net income of $0.2 million, non-cash adjustments relating to depreciation, amortization and stock based compensation costs of approximately $4.8 million, an increase in accounts payable, accrued compensation and employee benefits, and other accrued liabilities of $3.6 million and an increase in deferred income to distributors of $6.6 million. These sources of cash were partially offset by an increase in accounts receivable of $8.2 million, an increase inventory of $1.7 million and an increase in other assets of $2.7 million. Net cash used by investing activities was $0.7 million. Purchases of property and equipment of $5.4 million was partially offset by net sales and maturities of available-for-sale securities of $5.1 million. Net cash used by financing activities of $24.1 million for the first three months of fiscal 2008 relates mainly to cash used to repurchase stock of $24.8 million partially offset by issuance of common stock under employee stock plans of $1.0 million.
Read the The complete ReportACTL is in the portfolios of NWQ Managers of NWQ Investment Management Co.
