STOCKREPORTS

Actel Corporation

NASDAQ Symbol ACTL

Recent Price 17.50 52 Wk Range 26.75 - 15.25

Yield Nil 12-Mo. P/E 23.3

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 05/97 Rel. Strength Rank (1 Lowest - 99 Highest) 16 Insider Activity UnFavorable

Business Profile 27-MAY-97

Absent a significant charge taken in 1995 for in-process R&D resulting from a write-off in connection with the acquisition of Texas Instruments' FPGA business, earnings have been in a strong upward trend since 1991. Future profitability will depend on the company's continuing ability to develop new products. As is typical in the semiconductor industry, selling prices and margins of Actel's products generally decline over the lives of such products. To offset this margin erosion, it seeks to sell a higher percentage of new products. The company intends to increase the level of its R&D spending over the next several quarters to accelerate new product introductions.

Operation Review 27-MAY-97

Net revenues in the first quarter of 1997 rose 14%, year to year, reflecting a 2% increase in FPGA unit sales and an 11% increase in the average selling price of FPGAs. Gross margins widened to 59% of net revenues, from 55%, reflecting improved manufacturing yields and new, higher-margin products. Pretax income gained 34%. After taxes at 35.5%, versus 37.5%, net income advanced 38%, to $4,531,000 ($0.21 a share), from $3,277,000 ($0.16).

Stock Performance 18-JUL-97n

In the past 30 trading days, ACTL's shares have declined 17%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 399,920 shares, compared with the 40-day moving average of 417,950 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Dividend Data: No cash dividends have ever been paid on the common stock.

Business Summary 27-MAY-97

Actel Corp. designs, develops and markets field programmable gate arrays (FPGAs) and associated development system software and programming hardware. FPGAs are programmable logic circuits used by designers of communications, computer, industrial, military/aerospace, and other electronic systems to differentiate their products, reduce product development time and costs, and improve system size and performance.

Since shipping its first products in 1988, Actel has sold more than 7,500 development systems to customers including Allen Bradley/Rockwell, AST Computer, Alcatel, Bay Networks, Cabletron, DSC Communications, Hughes Aircraft, Lockheed Martin, Lucent Technologies and Siemens. ACTL has foundry relationships with several suppliers in the U.S. and other countries, which allows it to focus its resources on its core strengths of designing, developing and marketing FPGAs.

The company's FPGAs are based on two proprietary technologies: the Actel antifuse and an antifuse circuit architecture. Actel is the leading supplier of FPGAs based on antifuse switching elements. The principal advantages of the antifuse over alternative switching elements are smaller size and lower electrical resistance. ACTL believes that the advantages of its antifuse-based architecture become more pronounced in higher capacity devices, and that demand for higher capacity devices will increase faster than for programmable devices in general. As a result, it is focusing its attention on the transition to higher capacity devices and the associated high-level design methodologies.

Actel's product line currently consists of six families of FPGAs, Designer Series Development System and CoreHDL software, Activator Device Programmers, and a family of mask-programmed gate arrays (MPGAs). Designers typically use third-party software for circuit design and then translate the design into a programmed FPGA using ACTL's proprietary, highly automated software and hardware.

In 1996, Actel introduced its CorePCI models, which are Peripheral Component Interface (PCI) compliant blocks or "cores" that can be used to save development time by being "dropped into" designs for ACT 3 PCI devices, which were also introduced in 1996. In 1996, Actel also announced an alliance with Synopsys Inc. to produce a new category of logic devices called system programmable gate arrays (SPGAs), which will permit designers to combine complex system elements with traditional programmable logic to implement programmable "systems-on-a-chip."

Sales outside of the U.S. accounted for 33% of net revenues in 1996, down from 38% in 1995. Research and development expenses were $23.9 million (16% of net revenues) in 1996, up from $20.6 million (19%) in 1995. Backlog at December 31, 1996, was $27.0 million, versus $34.4 million a year earlier.

Capitalization

Long Term Debt: None (3/97).

Curr. Ratio	2.1	2.0	2.9	2.6	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	Nil	Nil	0.2	1.8	NM	NM	NA	NA	NA	NA
% Net Inc.of Revs.	10.0	NM	10.4	8.3	NM	2.8	NA	NA	NA	NA
% Ret. on Assets	12.2	NM	12.2	8.2	NM	NA	NA	NA	NA	NA
% Ret. on Equity	24.8	NM	17.6	12.4	NM	NA	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--995 E. Arques Ave., Sunnyvale, CA 94086-4533. Tel--(408) 739-1010. Website--http://www.actel.com Pres & CEO--J. C. East. Sr VP & CFO--D. M. Sugishita. VP & Secy--D. L. Van De Hey. Dirs--J. C. East, K. B. Geeslin, J. C. Henkens, F. N. Schwettmann, R. G. Spencer. Transfer Agent & Registrar--Norwest Bank Minnesota, South St. Paul, MN. Incorporated--in California in 1985. Empl-- 0. S&P Analyst: Adam Penn

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997