<SUBMISSION>
<ACCESSION-NUMBER>0001157523-09-000730
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20090202
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20090202
<DATE-OF-FILING-DATE-CHANGE>20090202
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACTUATE CORP
<CIK>0001062478
<ASSIGNED-SIC>7372
<IRS-NUMBER>943193197
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-24607
<FILM-NUMBER>09561998
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2207 BRIDGEPOINTE PARKWAY
<STREET2>SUITE 500
<CITY>SAN MATEO
<STATE>CA
<ZIP>94404
<PHONE>650.645.3000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2207 BRIDGEPOINTE PARKWAY
<STREET2>SUITE 500
<CITY>SAN MATEO
<STATE>CA
<ZIP>94404
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ACTUATE SOFTWARE CORP
<DATE-CHANGED>19980527
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5885941.htm
<DESCRIPTION>ACTUATE CORPORATION 8-K
<TEXT>
<html>
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    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 12pt; font-family: Times New Roman"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-size: 12pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font>
    </p>
    <hr style="height: 1.0 pt; width: 100%; color: #000000; text-align: center">


    <p style="text-align: center">
      <font style="font-size: 18pt; font-family: Times New Roman"><b>FORM 8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT </b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman">February
      2, 2009</font><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report (Date of earliest event reported)</font><br><br><font style="font-size: 24pt; font-family: Times New Roman"><b>Actuate
      Corporation</b></font><br><font style="font-size: 10pt; font-family: Times New Roman"><b>(Exact
      name of registrant as specified in its charter)</b></font><br><br>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 33%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>Delaware</b></font>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; width: 34%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>0-24607</b></font>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; width: 33%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>94-3193197</b></font>
          </p>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px; width: 33%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>(State
            of Incorporation)</b></font>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">

          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 34%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman"><b>(Commission
            File Number)</b></font>
          </p>
        </td>
        <td style="text-align: center; padding-left: 0.0px; width: 33%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(IRS Employer</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Identification Number)</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <font style="font-size: 10pt"><b>2207 Bridgepointe Parkway</b></font><br><font style="font-size: 10pt"><b>Suite
      500</b></font><br><font style="font-size: 10pt"><b>San Mateo, California
      94404</b></font><br><font style="font-size: 8pt"><b>(Address of
      principal executive offices)(Zip Code)</b></font><font style="font-size: 10pt"><br style="font-size: 10pt"></font><font style="font-size: 10pt"><b>(650)
      645-3000</b></font><br><font style="font-size: 8pt"><b>(Registrant&#8217;s
      telephone number, including area code)</b></font><font style="font-size: 10pt"><br style="font-size: 10pt"></font><br><font style="font-size: 8pt"><b>(Former
      Name or Former Address, if Changed Since Last Report) </b></font>
    </p>
    <p>
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt">
      </font><font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt">
      </font><font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt">
      </font><font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font><font style="font-size: 10pt">
      </font><font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <hr style="height: 1.0 pt; text-align: center; color: #000000; width: 100%">


    <p>

    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <hr style="height: 1.5 pt; text-align: center; color: #D3D3D3; width: 100%">


    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      2.02&#160;&#160;&#160;&#160;&#160;Results of Operations and Financial Condition.</b></font>
    </p>
    <p style="text-indent: 30.0px; text-align: left">
      The information in this Report under Item&#160;2.02, as well as Exhibit 99.1
      attached hereto, is furnished pursuant to Item&#160;2.02 of this Form 8-K.
      Consequently, it is not deemed &#8220;filed&#8221; for the purposes of Section&#160;18 of
      the Securities and Exchange Act of 1934, as amended, or otherwise
      subject to the liabilities of that section. It may only be incorporated
      by reference in another filing under the Exchange Act or the Securities
      Act of 1933, as amended, if such subsequent filing specifically
      references this Form 8-K.
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      On February&#160;2, 2009, Actuate Corporation issued a press release
      announcing its financial results for the fourth quarter of 2008. A copy
      of the press release is attached hereto as Exhibit 99.1 and incorporated
      herein by reference.
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      9.01&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b></font>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="width: 3%">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="3" valign="middle">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (d) Exhibits.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="width: 11%">

        </td>
        <td style="width: 5%">
          &#160;
        </td>
        <td style="width: 81%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 11%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 5%" valign="bottom">

        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 81%" valign="bottom">
          <b>Description</b>
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="width: 11%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 81%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="width: 11%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 81%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="text-align: left; padding-left: 20.0px; padding-right: 0.0px; white-space: nowrap; width: 11%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 5%" valign="bottom">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 81%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press release dated February 2, 2009.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <hr style="height: 1.5 pt; text-align: center; color: #D3D3D3; width: 100%">


    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p style="text-indent: 30.0px; font-family: Times New Roman; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, as amended, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">
          &#160;
        </td>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Actuate Corporation
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 6%">

        </td>
        <td style="text-align: left; padding-left: 30.0px; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 6%">

        </td>
        <td style="width: 44%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">Date:</font>
          </p>
        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 43%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">February
            2, 2009</font>
          </p>
        </td>
        <td style="width: 1%">

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Thomas McKeever
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Name:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Thomas McKeever
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Title:
          </p>
        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 44%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            General Counsel, VP of Corporate
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Development
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <hr style="height: 1.5 pt; text-align: center; color: #D3D3D3; width: 100%">


    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>INDEX TO
      EXHIBITS </b></font>
    </p>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px; width: 12%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td style="width: 5%">
          &#160;
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; width: 83%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 12%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 83%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 12%">

        </td>
        <td style="width: 5%">

        </td>
        <td style="width: 83%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 20.0px; padding-right: 0.0px; white-space: nowrap; width: 12%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td style="width: 5%">

        </td>
        <td style="text-align: left; padding-left: 0.0px; width: 83%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Press release dated February 2, 2009.
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
  </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5885941-ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Actuate
      Reports Fourth Quarter and Fiscal Year 2008 Financial Results</b></font>
    </p>
    <p>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Record
      Quarterly Non-GAAP Operating Margin of 26.6%</b></font>
    </p>
    <p>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Record
      Annual Cash Flow from Operations of $29.5 million, up 29% Year-over-Year;</b></font>
    </p>
    <p>
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Fiscal
      2008 BIRT-Related Business of $15.4 million, up 93% Year-over-Year.</b></font>
    </p>
    <p>
      SAN MATEO, Calif.--(BUSINESS WIRE)--February 2, 2009--Actuate
      Corporation (NASDAQ: ACTU), the leader in delivering Rich Internet
      Applications Without Limits&#8482;, today announced its financial results for
      the fourth quarter and fiscal year 2008.
    </p>
    <p>
      <b>Financial and Operational Highlights:</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Repurchased $60 million of Actuate common stock in a &#8220;modified Dutch
        auction&#8221; tender offer
      </li>
      <li style="margin-bottom: 10.0px">
        Entered into a revolving credit agreement with Wells Fargo Foothill,
        LLC, for up to $50 million
      </li>
      <li style="margin-bottom: 10.0px">
        Record annual non-GAAP services margin of 75.6%
      </li>
      <li style="margin-bottom: 10.0px">
        Record annual maintenance revenues of $76.7 million, up 8%
        year-over-year
      </li>
      <li style="margin-bottom: 10.0px">
        Record quarterly non-GAAP operating margin of 26.6%
      </li>
      <li style="margin-bottom: 10.0px">
        Record annual cash flow from operations of $29.5 million up 29%
        year-over-year
      </li>
      <li style="margin-bottom: 10.0px">
        Quarterly revenues of $33.2 million and fully diluted non-GAAP EPS of
        $0.10
      </li>
      <li style="margin-bottom: 10.0px">
        BIRT-related business exceeded $4.5 million in Q4 and totaled $15.4
        million for the year
      </li>
      <li style="margin-bottom: 10.0px">
        Booked transactions greater than $100,000 with 76 customers in Q4
      </li>
      <li style="margin-bottom: 10.0px">
        Closed one transaction in Q4 with a license component in excess of $1
        million
      </li>
    </ul>
    <p>
      &#8220;Despite the ongoing economic uncertainties, Actuate delivered solid
      operating margins and record cash flow from operations in 2008,&#8221; said
      Pete Cittadini, president and CEO of Actuate. &#8220;We expect the environment
      in 2009 will continue to be challenging, but the fact that Actuate
      powers mission critical applications along with our Open Source strategy
      and strong operational discipline allows us to continue to be a vibrant
      and relevant global software company for our shareholders, customers and
      employees.&#8221;
    </p>
    <div style="margin-right: 0pt; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Revenues for the fourth quarter of 2008 were $33.2 million, compared
      with $39.2 million in the fourth quarter of 2007. License revenues for
      the fourth quarter of 2008 were $10.1 million, compared with $13.7
      million in the year-ago quarter. Services and maintenance revenues for
      the fourth quarter of 2008 totaled $23.1 million, compared with $25.5
      million in the fourth quarter of 2007. Within this line item,
      maintenance revenues were $19.9 million for the fourth quarter, compared
      with $21.2 million in the same period last year. The fourth quarter of
      2007 included an unusually large $3 million maintenance catch-up
      transaction. Total revenues for the fiscal year of 2008 were $131.0
      million, compared with $140.6 million in fiscal year 2007. License
      revenues for 2008 were $40.0 million, with services and maintenance
      revenues of $91.0 million. Within this line item, maintenance revenues
      were $76.7 million, up 12.2% from 2007 excluding the unusual maintenance
      item mentioned above.
    </p>
    <p>
      Net income for the fourth quarter of 2008, as reported in accordance
      with U.S. generally accepted accounting principles (GAAP), was $4.7
      million, or $0.08 per diluted share, compared with net income of $10.8
      million or $0.16 per diluted share in the fourth quarter of 2007. In Q4
      2007, the company recorded a non-cash benefit in the provision for
      income taxes of approximately $6.8 million associated with the partial
      reversal of our valuation allowance against deferred tax assets. GAAP
      net income for the fiscal year 2008 was $13.6 million or $0.21 per
      diluted share, compared with GAAP net income of $20.2 million or $0.29
      per diluted share in the prior year.
    </p>
    <p>
      Cash flow from operations was $5.1 million for the fourth quarter of
      2008, and a record $29.5 million for fiscal year 2008. Cash, cash
      equivalents and investments totaled $58.4 million at December 31, 2008
      compared with $81.3 million as of September 30, 2008, and $68.4 million
      as of December 31, 2007. During the fourth quarter Actuate repurchased
      17.1 million shares of outstanding common stock for a total purchase
      price of $60 million as part of its tender offer. The company used $30
      million in cash and $30 million from its secured line of credit to
      finance this transaction.
    </p>
    <p>
      Non-GAAP net income for the fourth quarter of 2008 was $6.2 million, or
      $0.10 per diluted share, compared with non-GAAP net income of $7.7
      million, or $0.11 per diluted share in the fourth quarter of 2007.
      Non-GAAP operating margin for the fourth quarter of 2008 was a record
      26.6%, an increase of 600 basis points from the third quarter of 2008.
      Non-GAAP net income for fiscal year 2008 was $17.6 million or $0.27 per
      diluted share, compared with non-GAAP net income of $22.5 million or
      $0.33 per diluted share in fiscal year 2007.
    </p>
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        </div>
      </div>
    </div>
    <p>
      <b>Fourth Quarter 2008 Business Highlights</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Successful launch of Actuate 10 that extends BIRT to cost-effectively
        deliver rich, highly interactive enterprise performance management and
        customer-facing information applications
      </li>
      <li style="margin-bottom: 10.0px">
        Exceeded 6.5 million BIRT downloads life to date through December 31<sup>st</sup>
        2008
      </li>
      <li style="margin-bottom: 10.0px">
        Number of transactions with BIRT-related products and services
        exceeded 140 for Q4 and 380 for the year
      </li>
      <li style="margin-bottom: 10.0px">
        Announced that Actuate&#8217;s commercial BIRT product line can extend IBM
        Rational ClearQuest reports to improve collaboration, creating better
        visibility and control between software development teams and superior
        support for critical business operations
      </li>
      <li style="margin-bottom: 10.0px">
        Over 140 new customers for the year
      </li>
      <li style="margin-bottom: 10.0px">
        Over half of the business during the year involved projects that
        delivered information outside of the firewall
      </li>
      <li style="margin-bottom: 10.0px">
        Awarded its second consecutive CustomerSat Achievement in Customer
        Excellence (ACE) Award
      </li>
      <li style="margin-bottom: 10.0px">
        Presbyterian HealthCare Services (PHS), an Actuate customer, was
        recognized for its excellence in business performance management with
        DM Review&#8217;s 2008 Innovative Solution Award and a 2008 BeyeNETWORK
        Vision Award
      </li>
    </ul>
    <p>
      <b>Fourth Quarter Customer Highlights</b>
    </p>
    <p>
      During the fourth quarter, Actuate received significant new and repeat
      business from, among others:
    </p>
    <p>
      Allianz Global Investors Kapitalanlagegesellschaft mbH, American
      University of Beirut Medic, Caremark, Inc., City of Jacksonville,
      Florida, Deltek, Inc., Deutsche Bank, Eldorado Computing, Inc., First
      Health Group Corp., Hay Group, Inc., Leeds Primary Care Trust, Ministry
      of Finance (Indonesia), NHS Sefton, Orange County California, Sasktel
      Corporation, Stamford Hospital, Starwood Hotels &amp; Resorts Worldwide,
      Inc., and The Bank of New York Mellon Corporation.
    </p>
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        </div>
      </div>
    </div>
    <p>
      <b>2009 Outlook</b>
    </p>
    <p>
      Due to the high degree of volatility in market conditions, Actuate is
      not providing specific revenue or EPS targets as it has done
      historically. However, it is offering the following commentary on its
      expected financial performance in 2009;
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        The company expects continued growth in its maintenance revenues
      </li>
      <li style="margin-bottom: 10.0px">
        BIRT related business is expected to increase by 30% over 2008
      </li>
      <li style="margin-bottom: 10.0px">
        The Company expects to post operating margins in the range of 16-21%
      </li>
      <li style="margin-bottom: 10.0px">
        A non-GAAP tax rate of 20% will be used in 2009
      </li>
      <li style="margin-bottom: 10.0px">
        Assuming no material fluctuations in currency rates, the company
        expects to report total interest income, interest expense and net
        impact from FX (which comprise the other income/expense line item) of
        approximately $1.0 million (net expense) for the full year.
      </li>
    </ul>
    <p>
      <b>Conference Call Information</b>
    </p>
    <p>
      Actuate will be holding a conference call at 5:00 p.m. Eastern Time,
      today, February 2<sup>nd</sup>, 2009 to further discuss these results.
      The dial-in number for the call is 866-271-6130 (617-213-8894 for
      international participants) and the conference identification number
      43831907. The conference call will be broadcast live on the Investor
      Relations section of Actuate&#8217;s web site at <u>http://www.actuate.com/investor</u>
      and will be available as an archived replay shortly after the completion
      of the call.
    </p>
    <p>
      <b>Discussion of Non-GAAP Financial Measures</b>
    </p>
    <p>
      This press release contains financial measures that are not calculated
      in accordance with U.S. generally accepted accounting principles (GAAP).
      Actuate management evaluates and makes operating decisions using various
      performance measures. In addition to our GAAP results, we also consider
      adjusted net income, which we refer to as non-GAAP net income. We
      further consider various components of non-GAAP net income such as
      non-GAAP gross margin and non-GAAP operating expense. Non-GAAP net
      income is generally based on the revenues of our product, maintenance
      and services business operations and the costs of those operations, such
      as cost of revenue, research and development, sales and marketing and
      general and administrative expenses, that management considers in
      evaluating our ongoing core operating performance. Non-GAAP net income
      consists of net income excluding amortization of intangible assets,
      restructuring charges, equity plan-related compensation expenses and
      other charges and gains which management does not consider reflective of
      our core operating business. Intangible assets consist primarily of
      purchased technology, trade names, customer relationships, employment
      agreements and other intangible assets issued in connection with
      acquisitions. Restructuring charges consist of severance and benefits,
      excess facilities and asset-related charges and include strategic
      reallocations or reductions of personnel resources. Equity plan-related
      compensation expenses represent the fair value of all share-based
      payments to employees, including grants of employee stock options, as
      required under SFAS No. 123 (revised 2004), &quot;Share-Based Payment&quot; (SFAS
      123R). For purposes of comparability across other periods and against
      other companies in our industry, non-GAAP net income is adjusted by the
      amount of additional taxes or tax benefit that the Company would accrue
      using a normalized effective tax rate applied to the non-GAAP results.
    </p>
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        </div>
      </div>
    </div>
    <p>
      Non-GAAP net income is a supplemental measure of our performance that is
      not required by, nor presented in accordance with, GAAP. Moreover, it
      should not be considered as an alternative to net income, operating
      income, or any other performance measure derived in accordance with
      GAAP, or as an alternative to cash flow from operating activities or as
      a measure of our liquidity. We present non-GAAP net income because we
      consider it an important supplemental measure of our performance.
    </p>
    <p>
      Management excludes from non-GAAP net income certain recurring items to
      facilitate its review of the comparability of the Company's core
      operating performance on a period-to-period basis because such items are
      not related to the Company's ongoing core operating performance as
      viewed by management. Management uses this view of its operating
      performance for purposes of comparison with its business plan and
      individual operating budgets and allocations of resources. Additionally,
      when evaluating potential acquisitions, management excludes the items
      described above from its consideration of target performance and
      valuation.
    </p>
    <p>
      The Company believes that, in general, these items possess one or more
      of the following characteristics: their magnitude and timing are largely
      outside of the Company's control; they are unrelated to the ongoing
      operation of the business in the ordinary course; they are unusual and
      the Company does not expect them to occur in the ordinary course of
      business; or they are non-operational, or non-cash expenses involving
      stock option grants.
    </p>
    <p>
      The Company believes that the presentation of these non-GAAP financial
      measures is warranted for several reasons:
    </p>
    <p>
      1) Such non-GAAP financial measures provide an additional analytical
      tool for understanding the Company's financial performance by excluding
      the impact of items that may obscure trends in the core operating
      performance of the business;
    </p>
    <p>
      2) Since the Company has historically reported non-GAAP results to the
      investment community, the Company believes the inclusion of non-GAAP
      numbers provides consistency and enhances investors' ability to compare
      the Company's performance across financial reporting periods;
    </p>
    <p>
      3) These non-GAAP financial measures are employed by the Company's
      management in its own evaluation of performance and are utilized in
      financial and operational decision making processes, such as budget
      planning and forecasting;
    </p>
    <p>
      4) These non-GAAP financial measures facilitate comparisons to the
      operating results of other companies in our industry, which use similar
      financial measures to supplement their GAAP results, thus enhancing the
      perspective of investors who wish to utilize such comparisons in their
      analysis of the Company's performance.
    </p>
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        </div>
      </div>
    </div>
    <p>
      Set forth below are additional reasons why specific items are excluded
      from the Company's non-GAAP financial measures:
    </p>
    <p>
      a) Amortization charges for purchased technology and other intangible
      assets are excluded because they are inconsistent in amount and
      frequency and are significantly impacted by the timing and magnitude of
      the Company's acquisition transactions. We analyze and measure our
      operating results without these charges when evaluating our core
      performance. Generally, the impact of these charges to the Company's net
      income tends to diminish over time following an acquisition.
    </p>
    <p>
      b) While stock-based compensation calculated in accordance with SFAS
      123R constitutes an ongoing and recurring expense of the Company, it is
      not an expense that typically requires or will require cash settlement
      by the Company. We therefore exclude these charges for purposes of
      evaluating our core performance as well as with respect to evaluating
      any potential acquisition.
    </p>
    <p>
      c) Restructuring charges are primarily related to severance costs and/or
      the disposition of excess facilities driven by modifications of business
      strategy. These costs are excluded because they are inherently variable
      in size, and are not specifically included in the Company's annual
      operating plan and related budget due to the rapidly changing facts and
      circumstances typically associated with such modifications of business
      strategy;
    </p>
    <p>
      d) Operating expenses related to idle facilities are excluded because
      the charges relate to facilities that were abandoned and therefore the
      charges are unrelated to the ongoing operation of the business in the
      ordinary course. Because these costs are unrelated to the Company&#8217;s core
      operations, they are not included in the Company&#8217;s annual operating plan;
    </p>
    <p>
      e) During the quarter the Company incurred professional services fees
      related to considerations regarding strategic alternatives. These costs
      are excluded because the charges are unrelated to the ongoing operation
      of the business in the ordinary course. Because these costs are
      unrelated to the Company&#8217;s core operations, they are not included in the
      Company&#8217;s annual operating plan. We analyze and measure our operating
      results without these charges when evaluating our core performance;
    </p>
    <p>
      f) The facilities rent adjustment is excluded because we have recognized
      rent expense on both of our old and new corporate headquarters.
      Accounting rules required that we recognize rent expense on our new
      headquarters even though our landlord provided us with a rent holiday
      for the period during the transition period to the new lease. We
      therefore excluded the duplicate rent expense for purposes of evaluating
      our core performance;
    </p>
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        </div>
      </div>
    </div>
    <p>
      g) Income tax expense is adjusted by the amount of additional expense or
      benefit that we would accrue if we used non-GAAP results instead of GAAP
      results in the calculation of our tax liability, taking into
      consideration the Company's long-term tax structure. Starting in the
      quarter ended September 30, 2005, the Company began to use a normalized
      effective tax rate of 30%. This item is excluded because the rate
      remains subject to change based on several factors, including variations
      over time in the geographic business mix and statutory tax rates.
    </p>
    <p>
      h) Other employee termination costs relate to a one-time operating
      expense accrual for an unusual charge incurred by the company as the
      result of the termination of an employee in our European division. These
      costs are excluded because the changes are unrelated to the ongoing
      operation of the business in the ordinary course. Because these costs
      are unrelated to the company&#8217;s core operations, they are not included in
      the company&#8217;s annual operating plan. We analyze and measure our
      operating results without these charges when evaluating our core
      performance.
    </p>
    <p>
      In the future, the Company expects to continue reporting non-GAAP
      financial measures excluding items described above and the Company
      expects to continue to incur expenses similar to the non-GAAP
      adjustments described above. Accordingly, exclusion of these and other
      similar items in our non-GAAP presentation should not be construed as an
      inference that these costs are unusual, infrequent or non-recurring.
    </p>
    <p>
      As stated above, the Company presents non-GAAP financial measures
      because it considers them to be important supplemental measures of
      performance. However, non-GAAP financial measures have limitations as an
      analytical tool and should not be considered in isolation or as a
      substitute for the Company's GAAP results. In the future, the Company
      expects to incur expenses similar to the non-GAAP adjustments described
      above and expects to continue reporting non-GAAP financial measures
      excluding such items. Some of the limitations in relying on non-GAAP
      financial measures are:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Amortization of intangibles, though not directly affecting our current
        cash position, represent the loss in value as the technology in our
        industry evolves, is advanced or is replaced over time. The expense
        associated with this loss in value is not included in the non-GAAP net
        income presentation and therefore does not reflect the full economic
        effect of the ongoing cost of maintaining our current technological
        position in our competitive industry, which is addressed through our
        research and development program.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company may engage in acquisition transactions in the future.
        Merger and acquisition related charges may therefore continue to be
        incurred and should not be viewed as non-recurring.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company's stock option and stock purchase plans are important
        components of our incentive compensation arrangements and will be
        reflected as expenses in our GAAP results for the foreseeable future
        under SFAS 123R.
      </li>
      <li style="margin-bottom: 10.0px">
        The Company's income tax expense will be ultimately based on its GAAP
        taxable income and actual tax rates in effect, which may differ
        significantly from the 30% rate assumed in our non-GAAP presentation.
      </li>
      <li style="margin-bottom: 10.0px">
        Other companies, including other companies in our industry, may
        calculate non-GAAP financial measures differently than we do, limiting
        their usefulness as a comparative measure.
      </li>
    </ul>
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        </div>
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    </div>
    <p>
      Pursuant to the requirements of SEC Regulation G, a detailed
      reconciliation between the Company's GAAP and non-GAAP financial results
      is provided in this press release and is available in the investor
      relations section of the Company's web site at <u>http://www.actuate.com/investor</u>.
      Investors are advised to carefully review and consider this information
      strictly as a supplement to the GAAP results that are contained in this
      press release and in the Company's SEC filings.
    </p>
    <p>
      <b>About Actuate Corporation</b>
    </p>
    <p>
      Actuate Corporation is dedicated to increasing the richness,
      interactivity and effectiveness of enterprise data, for everyone,
      everywhere. Actuate delivers the next generation RIA-ready information
      platform for both customer and employee-facing applications. The Actuate
      platform boasts unmatched scalability, high-performance, reliability and
      security. Its proven RIA capabilities and highly collaborative
      development architecture are backed by the world&#8217;s largest open source
      information application developer community, grounded in BIRT, the
      Eclipse Foundation&#8217;s only top level Business Intelligence and reporting
      project.
    </p>
    <p>
      Global 9000 organizations use Actuate to roll out RIA-enabled customer
      loyalty and Performance Management applications that improve customer
      satisfaction and employee productivity. The company has over 4,400
      customers globally in a diverse range of business areas including
      financial services and the public sector, many of which have a long
      history of deploying Actuate-based solutions for dozens, or even
      hundreds of their mission-critical applications. Founded in 1993,
      Actuate has headquarters in San Mateo, California, with offices
      worldwide. Actuate is listed on NASDAQ under the symbol ACTU. For more
      information on Actuate, visit the company&#8217;s web site at <u>www.actuate.com</u>.
    </p>
    <p>
      <b>Cautionary Note Regarding Forward Looking Statements: The statements
      contained in this press release that are not purely historical are
      forward looking statements within the meaning of Section 21E of the
      Securities Exchange Act of 1934.</b> <b>These include statements
      regarding Actuate&#8217;s expectations, beliefs, hopes, intentions or
      strategies regarding the future.</b> <b>All such forward-looking
      statements are based upon information available to Actuate as of the
      date hereof, and Actuate disclaims any obligation to update or revise
      any such forward-looking statements based on changes in expectations or
      the circumstances or conditions on which such expectations may be based.</b>
      <b>Actual results could differ materially from Actuate&#8217;s current
      expectations.</b> <b>Factors that could cause or contribute to such
      differences include, but are not limited to, the general spending
      environment for information technology products and services in general
      and Rich Internet Application software in particular, quarterly
      fluctuations in our revenues and other operating results, our ability to
      expand our international operations, our ability to successfully compete
      against current and future competitors, the impact of acquisitions on
      the Company&#8217;s financial and/or operating condition, the ability to
      increase revenues through our indirect distribution channels, general
      economic and geopolitical uncertainties and other risk factors that are
      discussed in Actuate&#8217;s Securities and Exchange Commission filings,
      specifically Actuate 2007 Annual Report on Form 10-K filed on March 17,
      2008 and Quarterly Reports on Form 10-Q filed on May 9, 2008, August 8<sup>th</sup>
      and November 7, 2008.</b>
    </p>
    <p>
      <b>Copyright&#169; 2008 Actuate Corporation.</b> <b>All rights reserved.</b>
    </p>
    <p>
      <b>Actuate and the Actuate logo are registered trademarks of Actuate
      Corporation and/or its affiliates in the U.S. and certain other
      countries.</b> <b>All other brands, names or trademarks mentioned may be
      trademarks of their respective owners.</b>
    </p>
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    <div style="text-align:left">
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      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>ACTUATE CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>(in thousands)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>(unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="2" valign="top">
          <b>December 31,</b>
        </td>
        <td>
          &#160;
        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="2" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          <b>ASSETS</b>
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Current assets:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Cash, cash equivalents and short-term investments
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          42,050
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          68,415
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          28,017
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          38,575
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Other current assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,620
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,278
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          76,687
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          112,268
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,729
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,269
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Goodwill and other intangibles, net
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          37,914
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          39,242
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Investments
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,391
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Other assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          14,791
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,129
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          150,512
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          169,908
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          <b>LIABILITIES AND STOCKHOLDERS' EQUITY</b>
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Current liabilities:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Accounts payable
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,067
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,667
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Current portion of restructuring liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,206
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,201
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Accrued compensation
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,514
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,326
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other accrued liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,299
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,677
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Deferred revenue
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          40,900
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          40,352
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Total current liabilities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          55,986
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,223
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Long term liabilities:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Notes payable
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          30,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other deferred liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,054
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,124
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Deferred revenue
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,472
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,499
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Tax liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,660
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          483
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Restructuring liabilities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,092
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,606
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Total long term liabilities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          38,278
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,712
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Stockholders' equity
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          56,248
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          100,973
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          150,512
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          169,908
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt; width: 100%" cellspacing="0">
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="16" valign="top">
          <b>ACTUATE CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="16" valign="top">
          <b>CONSOLIDATED STATEMENTS OF OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="16" valign="top">
          <b>(in thousands, except per share data)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="16" valign="top">
          <b>(unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="6" valign="top">
          <b>Three Months Ended</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>Twelve Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" colspan="6" valign="top">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" colspan="7" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Revenues:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          License fees
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,069
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,692
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          39,989
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          53,216
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Maintenance
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          19,904
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          21,229
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          76,695
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          71,336
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Professional services
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,215
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,291
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          14,306
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,074
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Total revenues
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          33,188
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          39,212
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          130,990
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          140,626
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Costs and expenses:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Cost of license fees
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          330
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          638
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,396
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,997
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Cost of services
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,469
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,454
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          23,330
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          24,927
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Sales and marketing
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          11,848
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          14,723
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          51,830
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          55,312
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,175
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,402
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          22,035
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          21,826
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          General and administrative
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,013
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,667
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          18,470
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          17,784
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Amortization of other intangibles
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          237
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          237
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          948
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          948
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Restructuring charges
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          431
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          463
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,506
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,686
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Total costs and expenses
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          27,503
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          32,584
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          119,515
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          124,480
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Income from operations
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,685
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,628
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          11,475
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          16,146
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Interest and other income, net
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          24
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          849
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          785
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,155
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,709
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,477
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          12,260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          19,301
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Provision (benefit) for income taxes
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,038
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (3,301
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,318
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (863
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Net income
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,671
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,778
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,578
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          20,164
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Basic net income per share
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.08
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.18
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.23
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.33
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Shares used in basic per share calculation.
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,595
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,260
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          60,025
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          60,838
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Diluted net income per share
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.08
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.16
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.21
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.29
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Shares used in diluted per share calculation
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,335
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          69,289
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          65,049
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          68,722
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt; width: 100%" cellspacing="0">
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="17" valign="top">
          <b>ACTUATE CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="17" valign="top">
          <b>RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="17" valign="top">
          <b>(in thousands, except per share data)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="17" valign="top">
          <b>(unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="5" valign="top">
          <b>Three Months Ended</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="6" valign="top">
          <b>Twelve Months Ended</b>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt" colspan="5" valign="top">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          (a)
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt" colspan="5" valign="top">
          <b>December 31,</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          (a)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" colspan="2" valign="top">
          <b>Notes</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
        <td>

        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px" valign="top">
          <b>Notes</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          GAAP income before income taxes
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          5,709
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,477
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          12,260
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          19,301
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Non-GAAP adjustments:
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Amortization of purchased technology
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          37
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          138
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (b)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          147
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          562
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (b)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Amortization of other intangibles
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          237
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          237
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (c)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          948
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          948
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (c)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Stock compensation expense under FAS123R
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,031
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,217
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (d)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,122
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          8,986
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (d)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Restructuring charges
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          431
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          463
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (e)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,506
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,686
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (e)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Other employee termination costs
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          416
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (f)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          416
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (f)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          One-time professional services fees
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          483
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (g)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 0.0px" valign="top">
          Operating expenses related to idle facilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          306
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" valign="top">
          (h)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          Facilities rent adjustment
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          477
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          (i)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          694
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          (i)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="2" valign="top">
          Non-GAAP income before income taxes
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          8,861
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          11,009
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          25,188
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          32,177
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 0.0px" colspan="2" valign="top">
          Non-GAAP tax provision
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,658
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          3,303
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          (j)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,557
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,653
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 2.0px; padding-left: 0.0px" valign="top">
          (j)
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Non-GAAP net income
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,203
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          7,706
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          17,631
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          22,524
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Basic non-GAAP net income per share
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.11
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.29
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.37
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Shares used in basic per share calculation
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          58,595
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          60,025
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          60,838
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Diluted non-GAAP net income per share
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.10
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.11
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.27
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          0.33
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 0.0px" colspan="2" valign="top">
          Shares used in diluted per share calculation
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          61,354
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          70,143
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 4.0px; padding-left: 0.0px" valign="top">
          (k)
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          65,228
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          69,217
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-bottom: 4.0px; padding-left: 0.0px" valign="top">
          (k)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (a) This table contains financial measures that are not calculated
          in accordance with U.S. generally accepted accounting principles
          (GAAP). Such measures are intended to serve as a supplement to the
          GAAP results presented elsewhere in this press release, and should
          not be considered in isolation or as a substitute for such GAAP
          results. See the section entitled Discussion of Non-GAAP Financial
          Measures in this press release for additional information regarding:
          the manner in which management uses these non-GAAP financial
          measures; the economic substance behind management's decision to use
          such measures; the material limitations associated with use of these
          non-GAAP financial measures as compared to the use of the most
          directly comparable GAAP financial measures; the manner in which
          management compensates for these limitations when using these
          non-GAAP financial measures; and the substantive reasons why
          management believes these non-GAAP financial measures provide useful
          information to investors.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (b) Amortization of purchased technology acquired in the
          Performancesoft and Nimble acquisition transactions in January of
          fiscal year 2006, and July of fiscal year 2003, respectively.
          Purchased technology is amortized over the estimated life of the
          underlying asset.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (c) Amortization of other intangibles includes identifiable
          intangible assets including trade names, employment agreements and
          customer relationships acquired through various acquisition
          transactions. Other identified intangibles are amortized over the
          estimated remaining life of the underlying intangibles.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (d) As of January 1, 2006 Actuate accounts for stock compensation
          expense under the fair value method. Actuate is presenting this
          non-GAAP adjusted net income per diluted share financial measure
          which excludes stock based compensation expense for all periods
          presented. For the three months ended December 31, 2008, stock-based
          expense included approximately (in thousands): $410, $524, $334, and
          $763, related to cost of services revenues, sales and marketing
          expense, research expense, and development and general and
          administrative expense, respectively.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (e) The restructuring expenses for the fourth quarter of 2008
            consist primarily of severance payments, payroll taxes and
            extended medical benefits related to a reduction-in-force that was
            implemented in August 2008. These charges are also included for
            the year, as well as charges primarily related to the closure of
            various office facilities.
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (f) Other employee termination costs relate to a one-time operating
          expense accrual for an charge incurred by the Company as the result
          of the termination of an employee in our European division.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (g) During the quarter, the Company incurred professional fees
          related to considerations regarding strategic alternatives. These
          costs are excluded because the charges are unrelated to the ongoing
          operation of the business in the ordinary course. Because these
          costs are unrelated to the Company's core operations, they are not
          included in the Company's annual operating plan. We analyze and
          measure our operating results without these charges when evaluating
          our core performance.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (h) This relates to a one-time operating expense charge related to
          our former headquarters facility in South San Francisco, California.
          The facility was abandoned in September of 2007, when the Company
          moved to its new headquarters in San Mateo, California.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (i) The facilities rent adjustment is excluded because we have
          recognized rent expense on both of our old and new corporate
          headquarters. Accounting rules require that we recognize rent
          expense on our new headquarters even though our landlord provided us
          with a rent holiday for the period during the transition period to
          the new lease. We therefore excluded the duplicate rent expense for
          purposes of evaluating our core performance.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (j) Income tax expense is adjusted by the amount of additional
          expense or benefit that we would accrue if we used non-GAAP results
          instead of GAAP results in the calculation of our tax liability,
          taking into consideration the company's long-term tax structure. The
          Company uses a normalized effective tax rate of 30%. This item is
          excluded because the rate remains subject to change based on several
          factors, including variations over time in the geographic business
          mix and statutory tax rates.
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 0.0px" colspan="17" valign="top">
          (k) Shares used in calculating diluted earnings per share have been
          adjusted to reflect what the share amounts would have been if they
          were calculated using non-GAAP results.
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="margin-bottom: 10.0px; font-family: Times New Roman; font-size: 8pt; width: 100%" cellspacing="0">
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          <b>ACTUATE CORPORATION</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          <b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          <b>(in thousands)</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: center; padding-left: 0.0px" colspan="9" valign="top">
          <b>(unaudited)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>Twelve Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: center; padding-left: 0.0px" colspan="7" valign="top">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" colspan="2" valign="top">
          <b>Operating activities</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: center; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 5.0px" valign="top">
          Net income
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          13,578
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          20,164
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 5.0px" valign="top">
          Adjustments to reconcile net income to
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 5.0px" valign="top">
          net cash from operating activities:
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Stock compensation expense
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,122
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          8,986
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Amortization of other intangibles
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,419
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,947
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Amortization of debt issuance cost
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          48
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Depreciation and amortization of property and equipment
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,228
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,367
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Net operating loss utilizations (adjustments) related to prior
          acquisitions
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (228
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          107
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Restructuring charges
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,506
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,686
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Other-than-temporary impairment of investments
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,593
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Gain on fair value of put option
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (2,509
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Accretion of discount (amortization of premium) on short-term debt
          securities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          252
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (259
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Deferred tax asset utilization
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          135
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (178
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 5.0px" valign="top">
          Changes in operating assets and liabilities:
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Accounts receivable
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          10,558
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (7,342
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Other current assets
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,190
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (795
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Accounts payable
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,312
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          672
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Accrued compensation
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,812
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          293
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Other accrued liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,023
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,194
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Deferred tax assets
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (3,469
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (5,903
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Deferred tax liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (420
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Income taxes Receivable/payable
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,825
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (265
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Other deferred liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (70
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          1,101
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 15.0px" valign="top">
          Restructuring liabilities
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (4,017
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (3,433
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 15.0px" valign="top">
          Deferred revenue
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (479
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          2,998
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" colspan="2" valign="top">
          Net cash provided by operating activities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          29,535
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          22,920
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" colspan="2" valign="top">
          <b>Investing activities</b>
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Purchases of property and equipment
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,688
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (2,956
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Increase in restricted cash
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (260
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (395
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Proceeds from maturity of short-term investments
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          79,844
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          118,022
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Purchases of short-term investments
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (66,875
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (135,679
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Acquisition of performancesoft, inc, net of cash acquired
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (5,632
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Proceeds from security deposit
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          209
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 10.0px" valign="top">
          Net change in other assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (127
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" colspan="2" valign="top">
          Net cash provided by (used in) investing activities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          11,021
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (26,558
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" colspan="2" valign="top">
          <b>Financing activities</b>
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Proceeds from the credit facility, net of issuance cost
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          29,598
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Tax benefit from exercise of stock options
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          948
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,760
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Proceeds from issuance of common stock
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          6,661
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          9,162
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-left: 10.0px" valign="top">
          Stock repurchases
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (72,675
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (20,423
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" valign="top">
          Cost of treasury tender offer
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (271
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" colspan="2" valign="top">
          Net cash used in financing activities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (35,739
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (6,501
        </td>
        <td style="text-align: left; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" colspan="2" valign="top">
          Net increase (decrease) in cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          4,817
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (10,139
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-left: 5.0px" colspan="2" valign="top">
          Effect of exchange rate on cash
        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          (1,513
        </td>
        <td style="text-align: left; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="text-align: right; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          494
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 2.0px; padding-left: 5.0px" colspan="2" valign="top">
          Cash and cash equivalents at the beginning of the period
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          21,468
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="text-align: right; border-bottom: solid black 1.0pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          31,113
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="text-align: left; padding-bottom: 4.0px; padding-left: 5.0px" colspan="2" valign="top">
          Cash and cash equivalents at the end of the period
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          24,772
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          $
        </td>
        <td style="text-align: right; border-bottom: double black 2.25pt; padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap" valign="bottom">
          21,468
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <p style="text-align: left">

    </p>
    <p style="text-align: left">

    </p>
    <p style="text-align: center">

    </p>
    <p>
      CONTACT:<br>Market Street Partners for Actuate<br>Karen Haus,
      650-645-3555<br><u>IR@actuate.com</u>
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SUBMISSION>
