Actel ACTL
December 06, 2007 - 2:45pm EST by
repetek827
2007 2008
Price: 11.07 EPS
Shares Out. (in M): 0 P/E
Market Cap (in M): 303 P/FCF
Net Debt (in M): 0 EBIT 0 0
TEV: 0 TEV/EBIT

Sign up for free guest access to view investment idea with a 45 days delay.

 

Description

Thesis
   
    ACTL competes in the programmable logic device (PLD) space and specializes in the production of flash-based field programmable gate arrays (FPGAs).  Despite steady cash generation (ACTL's cash position has increased every year since 2002) from its core anitfuse business  and a  rapidly expanding flash FPGA business, the stock has been down to flat for a decade. It's understandable that the market could miss this one given the fact that ACTL has barely been covered since late 2006 due to a stock option review that covers the period since 1993.  The process should be fully resolved before the fourth quarter conference call. Management has assured the investment community that the aggregate value of the restatement will be less than $20 million. On top of that, the company's true growth was masked in 2007 because of the impact of one-time, last-time buys which are scheduled to finish in Q407. The greatest investments are the ones where you can enjoy all the gain with none of the pain.  Shareholders have been patiently waiting for seven years for ACTL to start realizing meaningful revenue from its investment in flash and only now will these investments start taking off.   When all is said and done, ACTL is in the best shape its been in the last ten years: with approximately $7/share in cash and aggressive R&D spending on its new flash product masking substantial earning power in its legacy business, ACTL offers a compelling risk/reward at its current trough valuation.

The Industry
    
    ACTL designs, develops, and markets FPGAs which are a subset of ~$4 billion programmable logic device (PLD) market.  FPGAs can be used in a broad range of applications across nearly all electronic system market segments. As opposed to application-specific integrated circuits (ASICs) which dominate high volume runs, most customers use FPGAs in low to medium volumes in the final production form of their products.  Gartner sees the total  market growing to  $6.8 billion by 2010. In fact, growth in the PLD market  has outpaced  overall growth in the  semiconductor industry as the market is moving from  traditional ASICS (cell based and gate array) to  FPGAs and structured ASICs.  ACTL is banking on the fact that as PLDs have gotten faster and cheaper over the last decade, they will continue to take a sizable share of the $12.4 billion ASIC market.

The Business and the Moat

    ACTL divides its FPGAs into two categories: anitfuse (80% of sales) and flash-based (20%).  Both antifuse and flash are sold across ACTLs four primary revenue categories: Military/Aerospace (Mil/aero) (28.3% revenue); Industrial (43%); Communications (15.4%); Consumer/ Commercial (13.3%).

    Antifuse and Mil/aero: A Moat with a  Barrier

    Antifuse is ACTL's legacy product that has been around for over 18 years (that is how long, believe it or not, they have been selling certain chips to some of its military/aerospace customers without even changing the design).  ACTL's anitfuse technology is popular with OEMs, military/aerospace vendors, and automobile manufacturers primarily  because it offers IP protection  and  is offered in  radiation and temperature  protected hermetic packaging.
  

    If ever there was a business with a moat and  impressive barriers to entry, it would be this product line. Just to get an idea of the level of reliability and testing that goes into making a mission critical logic device for an aerospace application consider that the Aerospace Exploration Agency  determined that ACTL's RTSX-SU FPGA has a failure in time (FIT) rate of 13 to 34 which means the customer should expect  between 13 and 34 failures per billion of device hours. A billion hours is more than 114 centuries. In order to make such a determination, the chip had to be stress tested for over 3 million hours. ACTL employs a very intelligent strategy whereby they deliver products to their commercial customer base and then enhance those products for military and aerospace customers. They also get subsidies from the US government (~$2-3 million/ year) to refine and develop applications for military and space applications. Basically,  they are the world's leading supplier of military and aerospace PLDs and their FPGAs are almost impossible to copy or reverse engineer. Xilinx, one of ACTL's biggest competitors in flash, tried to get into antifuse  in 1995 and abandoned it a year later.
 

    As might be expected, ACTL has considerable pricing power in antifuse, getting its highest ASPs from radiation hardened and radiation tolerant products . Management describes their pricing strategy as "frying the frog:" if you put a frog in a hot frying pan it will jump out; but if you place a frog in frying pan at room temperature and slowly notch up the temperature you can burn the frog alive (experiment has not been verified). Given that most engineers do not "design out" once they have a chip, ACTL slowly raises ASPs over time.  For example, in 2004-2005 net revenues were up 8%. The increase was  due primarily to an 8% increase in the overall average selling price of FPGAs. Unlike so many other semiconductor products, anitfuse has virtually no risk of becoming commodified.  ACTL's impressive cash build over the life of the company has been a testament to its excellence  in these  high-performance and high reliability applications.
    

    ACTL FPGAs have been designed into numerous  military and aerospace applications,  their space-grade FPGAs  have been on board more than 100 launches and accepted for flight-critical applications on more than 250 satellites, and  ACTL provided FPGAs and IP core modules for numerous application on board the Airbus A380 commercial airliner. This segment should grow at high single digit percent rate long term and due to its mature nature earn gross margins in excess of 60%.

     Flash: The Future of ACTL


    With its purchase of Gatefield in 2000, ACTL staked its long term future in flash by  becoming the the first company to sell flash-only FPGAs. The three  main types of memory configurations within FPGAs are static random access memory (SRAM), flash, and anitfuse. Currently 90% of all FPGAs are SRAM based, with Xilinx (XLNX) and Altera (ALTR) commanding ~85% of the SRAM market.  Given such dominant "best of breed" competitors -  XLNX and ALTR spend 3.5x more on R&D than all of their competitors combined -- one has to ask how can ACTL possibly compete?  Going against better financed, dominant, and entrenched leaders with great technology is almost never a good idea.
   

    ACTL's veteran CEO, John East, is well aware of the potentials pitfalls of such an undertaking:  “If you try to compete in today’s market against stronger competitors, you’ll lose.  What you have to do is predict where the market is going in the years ahead, and put your money there. Sometimes you’re wrong, but sometimes you get it right and win."  Given that over the last seven years the rate of flash based PLDs has been growing faster than all others ( the long term growth rate should remain between 40% and 50%), it appears that ACTL has made the right bet. 
   

    So the growth part of the ACTL story  really comes down to ACTL's strategy in flash.  More specifically, how can ACTL differentiate itself form Xilinx and Altera. ACTL's strategy comes down to three issues:

  • Superior Technology: The ultimate destination of the semiconductor business has been the savings of power, area, time and dollars. This laundry list of “must haves” creates an opportunity for flash based FPGAs as flash is the newest and most versatile technology. The greatest and most irrefutable indication that flash is the future of PLDs is that Xilinx and Altera have both started producing SRAM with flash embedded in them. This, of course, bodes well for ACTL given that they are the known industry leaders in flash.
  • Differentiated Price Competition: Xilinx and Altera are focused on the communications data path market and get most of their margins from really high end (>$20), high gig counts, lots of SRAM on board, lots of features, lots of IO standards type of products.  This area is served very well with SRAM technology. So while Xilinx and Altera continue to focus on this segment, ACTL is targeting the  $3- or less per-unit market.
  • Low Power Movement: ACTL is leading the industry into a new power paradigm. The wind is at their back because green is finally being recognized as being important in their industry. This point cannot be underestimated. Because nonvolatile flash-based FPGAs do not use millions of power-hungry SRAM configuration bit cells, they have significantly lower static power than SRAM-based solutions.  Flash based FPGAs deliver more complexity and features with more than 200 times less static power than competitive FPGA offerings and deliver more than 10 times the battery life of the current leading PLDs in portable applications. Compared with today's low-power, best-of-breed SRAM-based FPGAs, Actel's flash-based IGLOO FPGAs deliver between 100 and 1000 times improvement in power consumption, translating into weeks and months of standby battery life.

    So if this is the future of PLDs,  why haven't the  big guys pushed their way in? The answer is that even for Xilinx and Altera it would take several years and a huge R&D spend  that would be roughly equal to each of these firms yearly budgets, meaning that they would have to forgo spending on their existing SRAM technology or trash earnings for a few years - not a very likely scenario. For now  Xilinx and Altera are content with SRAM  that has embedded flash but these FPGAs don't even come close to ACTL's pure flash FPGAs where flash is built into the circuit at the transistor level (see above in the discussion of low power).  On top of this,  ACTL's market is not attractive based upon it size. Altera and Xilinx are looking for the next billion dollar market, not a niche market that requires significant up-front R&D.


 

    So why is flash still only 20% of ACTL revenue? The main reason is that there is a painfully long sales cycle: it can take 18-36 months and sometimes even longer  before design wins generate meaningful revenue.  The first couple years of a product's life  cycle  are subsumed by missionary sells whereby ACTL trades lower margins for design wins. Similar to their strategy with antifuse, eventually these sales turn into long term customer relationship that increase in profitability as time goes by.

 

Management
   
ACTL's CEO John East is a no nonsense guy that believes that performance, not road shows and other marketing techniques, is the best marketing the company can do.  His candor is very impressive: he'll tell you two bad for every good. And it is this kind of stewardship that has led the company through tough times without being acquired, without massive, morale-destroying layoffs and re-deployments, and without Silicon Valley’s legendary high turnover rates and short employee tenures.  Investors getting into ACTL now can rest assured that the CEO has taken a very long term view and refuses to pander to short term earnings at the expense of long term durability.

 
Valuation
    There are 27.4 million fully diluted shares outstanding and there is ~$7 in cash per share. Given that ACTL has not published financials in 5 quarters, this number could change but management has insisted that the cash balance has basically remained unchanged since its late 2006 level. The stock is trading at $11 giving it a market cap of $300 million and there is no debt.

    The big story when it comes to ACTL's valuation is the margin of safety.  According to management, 80-90% of the ~30% of revenue that they spend on  R&D is spent on developing flash. That means that if the company gave up on flash and milked its anitfuse business, they would earn $1.20 per share. On an EV/earnings power of anitfuse,  you get ACTL trading at around 4x earnings and the flash business for free. Remember that antifuse has no competitors in many of its Mil/aero lines and they are so  entrenched that its unlikely that any new competitors will ever develop (ACTL meets monthly with defense contractors in order to guide production and qualification with the Aerospace Corporation that oversees the industry can take up to a year).  And it is not like flash is some kind of  pie-in-the-sky,  speculative project. ACTL has been developing the technology for 7 years and its main competitors have effectively conceded flash's importance and started incorporating it into their chips.   Flash is a business which we believe can grow at  35% over the next five years.  With antifuse growing at its historical rate in the mid single digits   you get a $275 million business in 2010 with 15% operating margins. At those numbers, ACTL earns $1.05/share, excluding the benefits of share repurchases or interest income. Revenues should be growing in excess of 15% at that point and the stock should command a growth multiple of 20x, yielding a target price  ~$21. Obviously these projections are subject to change, for better or for worse, but the  thesis does not depend on these projections. Right now , today, ACTL's valuation is insane. There's no downside and  tremendous potential over the next three to five years.

Risks
-Stock options review continues to drag on

-lower manufacturing yields in flash
-competition in flash

 

Catalyst

1)ACTL becomes current with its SEC filings
2)Continued stock repurchases
3)Multiple product cycles maturing and accelerating growth
    sort by   Expand   New

    Description

    Thesis
       
        ACTL competes in the programmable logic device (PLD) space and specializes in the production of flash-based field programmable gate arrays (FPGAs).  Despite steady cash generation (ACTL's cash position has increased every year since 2002) from its core anitfuse business  and a  rapidly expanding flash FPGA business, the stock has been down to flat for a decade. It's understandable that the market could miss this one given the fact that ACTL has barely been covered since late 2006 due to a stock option review that covers the period since 1993.  The process should be fully resolved before the fourth quarter conference call. Management has assured the investment community that the aggregate value of the restatement will be less than $20 million. On top of that, the company's true growth was masked in 2007 because of the impact of one-time, last-time buys which are scheduled to finish in Q407. The greatest investments are the ones where you can enjoy all the gain with none of the pain.  Shareholders have been patiently waiting for seven years for ACTL to start realizing meaningful revenue from its investment in flash and only now will these investments start taking off.   When all is said and done, ACTL is in the best shape its been in the last ten years: with approximately $7/share in cash and aggressive R&D spending on its new flash product masking substantial earning power in its legacy business, ACTL offers a compelling risk/reward at its current trough valuation.

    The Industry
        
        ACTL designs, develops, and markets FPGAs which are a subset of ~$4 billion programmable logic device (PLD) market.  FPGAs can be used in a broad range of applications across nearly all electronic system market segments. As opposed to application-specific integrated circuits (ASICs) which dominate high volume runs, most customers use FPGAs in low to medium volumes in the final production form of their products.  Gartner sees the total  market growing to  $6.8 billion by 2010. In fact, growth in the PLD market  has outpaced  overall growth in the  semiconductor industry as the market is moving from  traditional ASICS (cell based and gate array) to  FPGAs and structured ASICs.  ACTL is banking on the fact that as PLDs have gotten faster and cheaper over the last decade, they will continue to take a sizable share of the $12.4 billion ASIC market.

    The Business and the Moat

        ACTL divides its FPGAs into two categories: anitfuse (80% of sales) and flash-based (20%).  Both antifuse and flash are sold across ACTLs four primary revenue categories: Military/Aerospace (Mil/aero) (28.3% revenue); Industrial (43%); Communications (15.4%); Consumer/ Commercial (13.3%).

        Antifuse and Mil/aero: A Moat with a  Barrier

        Antifuse is ACTL's legacy product that has been around for over 18 years (that is how long, believe it or not, they have been selling certain chips to some of its military/aerospace customers without even changing the design).  ACTL's anitfuse technology is popular with OEMs, military/aerospace vendors, and automobile manufacturers primarily  because it offers IP protection  and  is offered in  radiation and temperature  protected hermetic packaging.
      

        If ever there was a business with a moat and  impressive barriers to entry, it would be this product line. Just to get an idea of the level of reliability and testing that goes into making a mission critical logic device for an aerospace application consider that the Aerospace Exploration Agency  determined that ACTL's RTSX-SU FPGA has a failure in time (FIT) rate of 13 to 34 which means the customer should expect  between 13 and 34 failures per billion of device hours. A billion hours is more than 114 centuries. In order to make such a determination, the chip had to be stress tested for over 3 million hours. ACTL employs a very intelligent strategy whereby they deliver products to their commercial customer base and then enhance those products for military and aerospace customers. They also get subsidies from the US government (~$2-3 million/ year) to refine and develop applications for military and space applications. Basically,  they are the world's leading supplier of military and aerospace PLDs and their FPGAs are almost impossible to copy or reverse engineer. Xilinx, one of ACTL's biggest competitors in flash, tried to get into antifuse  in 1995 and abandoned it a year later.
     

        As might be expected, ACTL has considerable pricing power in antifuse, getting its highest ASPs from radiation hardened and radiation tolerant products . Management describes their pricing strategy as "frying the frog:" if you put a frog in a hot frying pan it will jump out; but if you place a frog in frying pan at room temperature and slowly notch up the temperature you can burn the frog alive (experiment has not been verified). Given that most engineers do not "design out" once they have a chip, ACTL slowly raises ASPs over time.  For example, in 2004-2005 net revenues were up 8%. The increase was  due primarily to an 8% increase in the overall average selling price of FPGAs. Unlike so many other semiconductor products, anitfuse has virtually no risk of becoming commodified.  ACTL's impressive cash build over the life of the company has been a testament to its excellence  in these  high-performance and high reliability applications.
        

        ACTL FPGAs have been designed into numerous  military and aerospace applications,  their space-grade FPGAs  have been on board more than 100 launches and accepted for flight-critical applications on more than 250 satellites, and  ACTL provided FPGAs and IP core modules for numerous application on board the Airbus A380 commercial airliner. This segment should grow at high single digit percent rate long term and due to its mature nature earn gross margins in excess of 60%.

         Flash: The Future of ACTL


        With its purchase of Gatefield in 2000, ACTL staked its long term future in flash by  becoming the the first company to sell flash-only FPGAs. The three  main types of memory configurations within FPGAs are static random access memory (SRAM), flash, and anitfuse. Currently 90% of all FPGAs are SRAM based, with Xilinx (XLNX) and Altera (ALTR) commanding ~85% of the SRAM market.  Given such dominant "best of breed" competitors -  XLNX and ALTR spend 3.5x more on R&D than all of their competitors combined -- one has to ask how can ACTL possibly compete?  Going against better financed, dominant, and entrenched leaders with great technology is almost never a good idea.
       

        ACTL's veteran CEO, John East, is well aware of the potentials pitfalls of such an undertaking:  “If you try to compete in today’s market against stronger competitors, you’ll lose.  What you have to do is predict where the market is going in the years ahead, and put your money there. Sometimes you’re wrong, but sometimes you get it right and win."  Given that over the last seven years the rate of flash based PLDs has been growing faster than all others ( the long term growth rate should remain between 40% and 50%), it appears that ACTL has made the right bet. 
       

        So the growth part of the ACTL story  really comes down to ACTL's strategy in flash.  More specifically, how can ACTL differentiate itself form Xilinx and Altera. ACTL's strategy comes down to three issues:


        So if this is the future of PLDs,  why haven't the  big guys pushed their way in? The answer is that even for Xilinx and Altera it would take several years and a huge R&D spend  that would be roughly equal to each of these firms yearly budgets, meaning that they would have to forgo spending on their existing SRAM technology or trash earnings for a few years - not a very likely scenario. For now  Xilinx and Altera are content with SRAM  that has embedded flash but these FPGAs don't even come close to ACTL's pure flash FPGAs where flash is built into the circuit at the transistor level (see above in the discussion of low power).  On top of this,  ACTL's market is not attractive based upon it size. Altera and Xilinx are looking for the next billion dollar market, not a niche market that requires significant up-front R&D.


     

        So why is flash still only 20% of ACTL revenue? The main reason is that there is a painfully long sales cycle: it can take 18-36 months and sometimes even longer  before design wins generate meaningful revenue.  The first couple years of a product's life  cycle  are subsumed by missionary sells whereby ACTL trades lower margins for design wins. Similar to their strategy with antifuse, eventually these sales turn into long term customer relationship that increase in profitability as time goes by.

     

    Management
       
    ACTL's CEO John East is a no nonsense guy that believes that performance, not road shows and other marketing techniques, is the best marketing the company can do.  His candor is very impressive: he'll tell you two bad for every good. And it is this kind of stewardship that has led the company through tough times without being acquired, without massive, morale-destroying layoffs and re-deployments, and without Silicon Valley’s legendary high turnover rates and short employee tenures.  Investors getting into ACTL now can rest assured that the CEO has taken a very long term view and refuses to pander to short term earnings at the expense of long term durability.

     
    Valuation
        There are 27.4 million fully diluted shares outstanding and there is ~$7 in cash per share. Given that ACTL has not published financials in 5 quarters, this number could change but management has insisted that the cash balance has basically remained unchanged since its late 2006 level. The stock is trading at $11 giving it a market cap of $300 million and there is no debt.

        The big story when it comes to ACTL's valuation is the margin of safety.  According to management, 80-90% of the ~30% of revenue that they spend on  R&D is spent on developing flash. That means that if the company gave up on flash and milked its anitfuse business, they would earn $1.20 per share. On an EV/earnings power of anitfuse,  you get ACTL trading at around 4x earnings and the flash business for free. Remember that antifuse has no competitors in many of its Mil/aero lines and they are so  entrenched that its unlikely that any new competitors will ever develop (ACTL meets monthly with defense contractors in order to guide production and qualification with the Aerospace Corporation that oversees the industry can take up to a year).  And it is not like flash is some kind of  pie-in-the-sky,  speculative project. ACTL has been developing the technology for 7 years and its main competitors have effectively conceded flash's importance and started incorporating it into their chips.   Flash is a business which we believe can grow at  35% over the next five years.  With antifuse growing at its historical rate in the mid single digits   you get a $275 million business in 2010 with 15% operating margins. At those numbers, ACTL earns $1.05/share, excluding the benefits of share repurchases or interest income. Revenues should be growing in excess of 15% at that point and the stock should command a growth multiple of 20x, yielding a target price  ~$21. Obviously these projections are subject to change, for better or for worse, but the  thesis does not depend on these projections. Right now , today, ACTL's valuation is insane. There's no downside and  tremendous potential over the next three to five years.

    Risks
    -Stock options review continues to drag on

    -lower manufacturing yields in flash
    -competition in flash

     

    Catalyst

    1)ACTL becomes current with its SEC filings
    2)Continued stock repurchases
    3)Multiple product cycles maturing and accelerating growth

    Messages


    Subjectmore questions
    Entry12/07/2007 08:15 AM
    Memberheffer504
    1) if so cheap, why no insider buying at all?
    2) why do key executives keep leaving the company?
    3) what is worst case scenario of resolution of options investigation?
    4) how large are xilinx and altera's r&d budgets, and given the tiny mkt cap here, why haven't they bought actl if the technology is good?

    thanks, nice writeup.

    SubjectQuestions
    Entry12/10/2007 10:43 AM
    Memberrepetek827
    Q)
    What is the fundamental difference between SRAM, flash, and antifuse based FPGAs?

    A)Rather than give you the Wikipedia answer, I'll try to explain it to you based upon the relevant factors for the ACTL thesis. SRAM, flash, and antifuse refer to the three main types of memory configuration within FPGAs. As for the fundamental difference, each technology has its pros and cons. SRAM: Pros- Reprogrammable, more scalable at advanced process nodes, higher logic densities; Con - high power consumption; open to IP theft; subject to radiation induced upsets. Flash: Pros- Low power consumption, reprogrammable, IP protection, subject to radiation upsets; Cons - lower logic cell density. Antifuse: Pros- IP protection, least susceptible to radiation and temperature induced upsets, low power consumption; Cons- one-time programmable, lower logic density.
    When all is said and done, the OEM's decision can be application specific. But on an one to one comparison, flash is a superior technology to SRAM, especially in the low cost ,lower logic density FPGA market.

    Q) You mention that ACTL bought Gatefield in 2000 and became the first to sell flash-only FPGAs. We know that low power consumption is not a new area of focus for mobile applications. We also know that flash technology has been around for some time. Why hasn’t ACTL displaced XLNX and ALTR in mobile applications?

    A)The short answer is that ACTL is not going after the mobile application market where XLNX and ALTR dominate. ACTL has differentiated itself by choosing to compete in the value FPGA space and in anitfuse. Taking on the big guys on their own turf means entering the "process geometry rat race" where the biggest R&D budget wins which is decidedly nots ACTL's strength.

    Subjectmore questions
    Entry12/10/2007 02:06 PM
    Memberrepetek827
    1) if so cheap, why no insider buying at all?
    I remember that when speaking with the CFO, he was lamenting the fact that because of the option review he could not buy any stock even though he thinks the company is in the best shape in 10 years (I need to verify if this is indeed the policy that insiders are not allowed to trade during the investigation)
    2) why do key executives keep leaving the company?
    I guess you are referring to Dennis Kish Vice President of Marketing. There's really no story here. Dennis landed a dream job at MXP Semiconductor and moved his entire family to London. MXP is 5x the size of ACTL and offer him much bigger upside. Rich Brossart was VP of Product Marketing and was hired in October of 2006 and left in Sept. 07. His departure could be more cause for concern but understandable given the current stage of the flash sales cycle which can take 4 years to get design wins. Compare that with the average semi conductor sales cycle which takes about a year and half. As of now the company still has no VP of Sales which is problematic given that flash is ramping and ACTL really needs to get inside a big OEM to move to the next level.
    3) what is worst case scenario of resolution of options investigation?
    According to the CFO, there is no worse case: it is all non cash and insignificant given the size of the restatement period. The company will probably have to expense to ~5mm for lawyers, accountants, etc.
    4) how large are xilinx and altera's r&d budgets, and given the tiny mkt cap here, why haven't they bought actl if the technology is good?
    ALTR averages around $60mm in R&D per quarter and that number has been going up giving rising mask costs. The main reason they don't buy ACTL is because these companies are going after the value FPGA market with their own hybrid SRAM chips which are clearly inferior to ACTL pure flash chips. That is, a hybrid SRAM chips with embedded flash has none of the power savings of flash. Given that power has been and will continue to be the most sought after feature, this is a huge difference. On top of this this market segment is a secondary market for the big guys who excel in mobile communications where the ASPs are much higher.

    SubjectEPS from antifuse business
    Entry02/11/2008 02:53 PM
    Memberali79
    Can you provide more color on how you get to $1.20 of EPS for the antifuse business. How much operating income are you taking away from the flash business to get that number? Thanks

    SubjectRE: EPS from antifuse business
    Entry02/13/2008 10:51 AM
    Memberrepetek827
    Hello,
    Here is how we looked at it. In 2006 ACTL earned 190mm in revenue. Historically the company has spent 25-30% of revenue on R&D. Based upon conversations with management -- although no specific number was given -- we assume that 70-80% of the R&D spend was going to support flash and the rest to maintain antifuse. Taking the conservative side of those assumptions and the fact that flash isn't really earning any money at this point and taking into account the historical cash build of the company before they got into flash (the ~186mm in cash is all self generated from antifuse) we estimated that antifuse is producing ~40mm in earnings.

    SubjectXilinx
    Entry02/26/2008 05:07 PM
    Memberali79
    I heard that Xilinx will have a space FPGA that is radiation resistant and reprogrammable in the next two years and that the defense contractors don't want to use Actel chips anymore because antifuse isn't reprogrammable and the flash chip they have can't give you enough power(can't keep up on density with SRAM). If so, that would hurt Actel materially. Have you heard anything similar? Thanks.
      Back to top