Exhibit 99.1

Phoenix Technologies Reports Fiscal 2010 Second Quarter Financial Results

Company Makes Continued Progress with Strategy to Return to Core Systems Software
Business and Introduces Second-Half of Fiscal 2010 Financial Guidance

MILPITAS, CA. — May 4, 2010 — Phoenix Technologies Ltd. (NASDAQ: PTEC), the global leader in core systems software (CSS), today reported financial results for the fiscal 2010 second quarter ended March 31, 2010 and introduced fiscal 2010 second-half guidance.

During the second quarter of fiscal 2010, the Company classified revenues and expenses related to its eSupport business operations as discontinued operations. Accordingly, Phoenix’s financial statements have been reclassified for all periods presented to reflect the current discontinued operations treatment. The FailSafe and HyperSpace products do not qualify as separate business operations, and related revenues and expenses therefore continue to be reflected in continuing operations.

Second Quarter Fiscal 2010 Financial Highlights and Guidance

§

Revenues of $14.6 million, compared with $15.1 million for the second quarter of fiscal 2009.

§

GAAP net loss from continuing operations of ($2.4) million, or ($0.07) per share, compared with a GAAP net loss from continuing operations of ($43.6) million, or ($1.53) per share for the second quarter of fiscal 2009.

§

Non-GAAP net loss from continuing operations (adjusted to exclude charges for amortization of intangible assets, restructuring and asset impairment, intangible assets and goodwill impairment, and stock-based compensation) of ($2.6) million, or ($0.07) per share, compared with non-GAAP net loss from continuing operations of ($5.2) million, or ($0.18) per share for the second quarter of fiscal 2009.

§

Cash and cash equivalents balance of $25.3 million as of March 31, 2010, compared with $35.1 million as of September 30, 2009.

§

Phoenix currently expects second-half of fiscal 2010 revenue of $28 million to $32 million and non-GAAP operating income of $1 million to $3 million.

Second Quarter Fiscal 2010 and Recent Business Highlights

§

Appointment of Tom Lacey as President and Chief Executive Officer and Robert Andersen as Interim Chief Financial Officer.

§

Strengthened the executive management team and enhanced focus in key markets with the appointment of Kelly Wu to lead Phoenix’s Greater China operations.

§

Completed the strategic sale of assets relating to the Company’s FailSafe and Phoenix Freeze products and services in April 2010 for $6,875,000 cash to further realign the Company’s focus on its CSS business.

“With a renewed focus on our CSS business, we are already making substantial headway in restoring our company to financial health and gaining important sustainability and visibility to our future financial performance,” said Tom Lacey, President and Chief Executive Officer of Phoenix. “During the period we continued to improve our expense structure to better align with our profit and revenue growth plans. We believe our approach of creating operating efficiencies within our core business processes will produce meaningful reductions to our expenses while fostering future growth.

“When I took on the role of CEO in February of this year, it became immediately clear that in order to regain CSS market share and position our business for future growth, we would need to take a multi-pronged approach. First, we need to return to our roots as a CSS company. As an important step toward restoring this focus, in April we successfully sold the assets related to our non-core FailSafe and Freeze products and services. We expect to meet the goal of eliminating the expense associated with non-core products in the near-term.

“Second, we continue to refine our CSS technological enhancements to deliver the highest performance in the features that are most important to our customers. This is a key component of our go-forward strategy. During the quarter we launched our SecureCore Tiano 2.0 product on schedule. The early feedback from our customers is very encouraging and consistent with our expectations of a high quality, high performance product. This product architecture is the platform on which we expect to drive our future growth and market share gains. In developing a scalable architecture for next generation CSS products, we believe we will achieve a meaningful reduction in our development costs and further increase our profit margins.

“Finally, addressing the rapidly growing embedded net-connected market and developing a suite of plug-in products holds substantial upside for our growth potential. By addressing these opportunities in models adjacent and complementary to our core focus, we believe we can significantly expand our addressable market opportunity with minimal incremental expense.

“Phoenix has long been the industry leader in BIOS. We intend to capitalize on this position to rejuvenate our core business and address new opportunities that work in tandem with our proven competencies. With recovering PC unit growth and a solid strategic approach, we expect to capture additional market share and to continue to offset ASP declines. As we execute on our refined strategy, we are well on our way to attaining our growth targets and achieving our goal of sustained profitability” Lacey concluded.

Second Quarter Fiscal 2010 Financial Summary

Total revenues for the second quarter of fiscal 2010 ended March 31, 2010 were $14.6 million, compared with $15.1 million for the second quarter of fiscal 2009 ended March 31, 2009.

Gross margin for the second quarter of fiscal 2010 was $12.4 million. This compares with gross margin of $1.6 million for the second quarter of fiscal 2009.

For the second quarter of fiscal 2010, Phoenix’s research and development expense decreased by 25% from $10.3 million to $7.7 million, sales and marketing expenses decreased by 37% from $5.2 million to $3.3 million, and general and administrative expenses decreased by 49% from $5.0 million to $2.5 million, all compared with the same period in the prior fiscal year.

Total operating expenses for the second quarter of fiscal 2010 decreased 69% from $45.3 million to $14.3 million, compared with the second quarter of fiscal 2009. During the second fiscal quarter of 2010, Phoenix implemented restructuring initiatives to align its cost structure with its core business which included a restructuring charge of $0.8 million for the reduction of 37 personnel, primarily in sales, marketing and G&A functions. The Company also recorded an impairment charge of $4.3 million, as reflected in discontinued operations, for its eSupport business, which the Company intends to divest.

Net loss from continuing operations for the second quarter of fiscal 2010 was ($2.4) million, or ($0.07) per share, compared with ($43.6) million, or ($1.53) per share, in the comparable year-ago period.

Non-GAAP net loss from continuing operations for the second quarter of fiscal 2010 was ($2.6) million, or ($0.07) per share, compared with non-GAAP net loss of ($5.2) million, or ($0.18) per share for the second quarter of fiscal 2009.

The Company reduced its operating loss from continuing operations to ($1.9) million from ($43.7) million for the second quarter of fiscal 2009. The fiscal 2010 period included charges for the amortization of intangible assets totaling $332,000 and restructuring and asset impairment of $755,000. The fiscal 2009 period included charges for the amortization and impairment of intangible assets totaling $11.2 million, a restructuring and asset impairment of $957,000 and goodwill impairment of $23.9 million.

The Company’s cash and cash equivalents balance as of March 31, 2010, excluding the April sale of assets relating to the Company’s FailSafe and Freeze products and services, was $25.3 million, compared with $35.1 million as of September 30, 2009.

Outlook

Phoenix currently expects second-half of fiscal 2010 revenue of $28 million to $32 million and non-GAAP operating income of $1 million to $3 million.

Conference Call

Newly appointed President and Chief Executive Officer Tom Lacey and Interim Chief Financial Officer Robert Andersen will also host an investment community conference call today beginning at 5:30 a.m. Pacific time (8:30 a.m. Eastern time) to discuss the results and details regarding the Company’s new strategy focused on growing its CSS business. To participate in the conference call, please dial 1-877-941-8601 or 1-480-629-9810. Investors may also access a live audio web cast of this conference call on the investor relations section of the Company’s website at http://investor.phoenix.com/webcasts.cfm.

A replay of the webcast will be available approximately two hours after the conclusion of the call and will remain available for 90 calendar days. An audio replay will also be available approximately one hour after the conclusion of the call and will be made available through Tuesday, May 18, 2010. The audio replay can be accessed by dialing 1-800-406-7325 or 1-303-590-3030 and entering access ID number 4288080.

About Phoenix Technologies Ltd.

Phoenix Technologies Ltd. (Nasdaq: PTEC), the leader in core systems software products, services and embedded technologies, pioneers open standards and delivers innovative solutions that enable the PC industry’s top system builders and specifiers to differentiate their systems, reduce time-to-market and increase their revenues. The Company’s flagship products — SecureCore Tiano™ and Embedded BIOS^® — are revolutionizing the PC user experience by delivering unprecedented performance, security, reliability, continuity, and ease-of-use. The Company established industry leadership and created the PC clone industry with its original BIOS product in 1983. Phoenix has over 200 technology patents issued and pending, and has shipped firmware in over one billion systems. Phoenix is headquartered in Milpitas, California with offices worldwide. For more information, visit http://www.phoenix.com.

Phoenix, Phoenix Technologies, SecureCore Tiano, Embedded BIOS, and the Phoenix Technologies logo are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other marks are the marks of their respective owners.

To be added to the Company’s email distribution for future news releases, please send your request to phoenix@tpg-ir.com.

Use of Non-GAAP Financial Information

To supplement Phoenix’s consolidated condensed financial statements presented on a GAAP basis, Phoenix also presents non-GAAP net income (loss) information in this press release. The adjustments in the current period consist principally of stock-based compensation expense as required according to ASC 718; restructuring and related asset impairment charges primarily associated with workforce reduction, terminating facility lease commitments, and other exit costs related to formal restructuring plans; amortization of intangible assets; and the impairment of tangible and intangible assets and goodwill. These non-GAAP adjustments, as well as management’s reasons for providing non-GAAP information, are more fully described in the reconciliation between net income (loss) on a GAAP basis and non-GAAP net income (loss) provided in the financial statements that accompany this press release.

Safe Harbor

The statements in this release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but not limited to, our financial performance, including achievement of revenue and operating expense targets, reduction in R&D costs, increases in margins, and attaining sustained profitability; our expectations for our new products; product enhancements; growth opportunities and new addressable markets; capturing BIOS market share; the sale of our eSupport business; and strategic options with respect to our HyperSpace product line. These statements involve risk and uncertainties, including: changes in demand for our products and services in adverse economic conditions; our dependence on key customers; our ability to enhance existing products and develop and market new products and technologies successfully; our ability to achieve and maintain profitability and positive cash flow from operations; our ability to meet our capital requirements in the future; our ability to attract and retain key personnel; product and price competition in our industry and the markets in which we operate; our ability to maintain the average selling price of our core systems software; end-user demand for products incorporating our products; the ability of our customers to introduce and market new products that incorporate our products; our ability to generate additional capital on terms acceptable to us; timing of payment by our customers; risks associated with any acquisition or disposition strategy that we might employ; costs and results of litigation; failure to protect our intellectual property rights; changes in our relationship with leading software and semiconductor companies; the rate of adoption of new operating system and microprocessor design technology; the volatility of our stock price; risks associated with our international sales and operating

internationally, including currency fluctuations, acts of war or terrorism, and changes in laws and regulations relating to our employees in international locations; whether future restructurings become necessary; fluctuations in our operating results and our ability to manage expenses consistent with our revenues; the effects of any software viruses or other breaches of our network security; failure to timely upgrade our information technology system; defects or errors in our products and services; consolidation in the industry in which we operate; risk associated with use of open source software; any material weakness in our internal controls over financial reporting; changes in financial accounting standards and our cost of compliance; business disruptions due to acts of war, power shortages and unexpected natural disasters; trends regarding the use of the x86 microprocessor architecture for personal computers and other digital devices; anti-takeover provisions in our charter documents; changes in our effective tax rates; and the validity of our tax positions. For a further list and description of risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements in this release, we refer you to the Company’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements included in this release are based upon assumptions, forecasts and information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statements.

Contact:

Phoenix Technologies Ltd.
Robert Andersen
Interim Chief Financial Officer
Tel: 408-570-1000

The Piacente Group, Inc.
Investor Relations
Brandi Floberg
Tel. 1-212-481-2050
phoenix@thepiacentegroup.com

PHOENIX TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

		March 31,				September 30,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	25,324			$	35,062
Accounts receivable, net of allowances			4,381				6,505
Other assets — current			1,247				2,196
Assets held for sale			6,456				—
Total current assets			37,408				43,763
Property and equipment, net			3,046				4,881
Purchased technology and Intangible assets, net			2,615				7,608
Goodwill			17,414				22,205
Other assets — noncurrent			882				3,082
Total assets		$	61,365			$	81,539
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	1,058			$	1,440
Accrued compensation and related liabilities			3,044				3,433
Deferred revenue — current			14,504				20,770
Income taxes payable			1,047				4,136
Accrued restructuring charges — current			349				146
Other liabilities — current			2,813				2,989
Liabilities related to assets held for sale			2,479				—
Total current liabilities			25,294				32,914
Accrued restructuring charges — noncurrent			38				85
Deferred revenue — noncurrent			1,090				898
Income taxes payable — noncurrent			9,196				16,348
Other liabilities — noncurrent			2,881				2,738
Total liabilities			38,499				52,983
Stockholders’ equity:
Preferred stock			—				—
Common stock			36				36
Additional paid-in capital			258,487				257,975
Accumulated deficit			(142,868	)			(137,058	)
Accumulated other comprehensive loss			(663	)			(344	)
Less: Cost of treasury stock			(92,126	)			(92,053	)
Total stockholders’ equity			22,866				28,556
Total liabilities and stockholders’ equity		$	61,365			$	81,539

See notes to unaudited condensed consolidated financial statements

PHOENIX TECHNOLOGIES LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

		Three months ended March 31,								Six months ended March 31,
		2010				2009				2010				2009
Revenues:
License fees		$	12,563			$	12,628			$	25,451			$	27,112
Subscription fees			7				67				8				129
Service fees			2,074				2,447				4,018				4,881
Total revenues			14,644				15,142				29,477				32,122
Cost of revenues:
License fees			38				198				158				286
Subscription fees			11				101				20				160
Service fees			1,907				1,992				3,497				4,030
Amortization of purchased intangible assets			332				747				663				1,698
Impairment of purchased intangible assets			—				10,483				—				10,483
Total cost of revenues			2,288				13,521				4,338				16,657
Gross margin			12,356				1,621				25,139				15,465
Operating expenses:
Research and development			7,697				10,313				16,121				20,781
Sales and marketing			3,268				5,218				7,973				10,141
General and administrative			2,533				4,987				7,222				10,607
Restructuring and asset impairment			755				957				1,236				1,050
Impairment of goodwill			—				23,872				—				23,872
Total operating expenses			14,253				45,347				32,552				66,451
Operating loss			(1,897	)			(43,726	)			(7,413	)			(50,986	)
Interest and other income (expenses), net			(41	)			335				107				605
Loss from continuing operations before income taxes			(1,938	)			(43,391	)			(7,306	)			(50,381	)
Income tax (benefit) expense			490				221				(6,058	)			1,620
Loss from continuing operations			(2,428	)			(43,612	)			(1,248	)			(52,001	)
															.
Loss from discontinued operations, net of tax			(4,444	)			(11,536	)			(4,562	)			(12,490	)
Net loss		$	(6,872	)		$	(55,148	)		$	(5,810	)		$	(64,491	)
Basic and diluted loss per share from:
Continuing operations		$	(0.07	)		$	(1.53	)		$	(0.04	)		$	(1.83	)
Discontinued operations		$	(0.13	)		$	(0.40	)		$	(0.13	)		$	(0.44	)
Net loss		$	(0.20	)		$	(1.93	)		$	(0.17	)		$	(2.27	)
Shares used in loss per share calculation:
Basic and diluted			35,035				28,560				35,027				28,465

See notes to unaudited condensed consolidated financial statements

PHOENIX TECHNOLOGIES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

		Three months ended
		March 31,				December 31,				March 31,				Six months ended March 31,
		2010				2009				2009				2010				2009
Cash flows from operating activities:
Net income (loss)		$	(6,872	)		$	1,062			$	(55,148	)		$	(5,810	)		$	(64,491	)
Reconciliation to net cash used in operating activities:
Depreciation and amortization			1,004				1,009				1,417				2,013				3,035
Stock-based compensation			(1,211	)			1,747				2,423				536				5,554
Loss from disposal of fixed assets			68				51				4				119				4
Impairment of purchased intangible assets			319				—				11,943				319				11,943
Impairment of goodwill			3,754				—				33,213				3,754				33,213
Change in operating assets and liabilities:
Accounts receivable			(92	)			2,019				(2,588	)			1,927				(1,238	)
Other assets			(18	)			2,679				638				2,661				(146	)
Accounts payable			(935	)			601				(1,290	)			(334	)			(722	)
Accrued compensation and related liabilities			635				(634	)			637				1				(1,890	)
Deferred revenue			(514	)			(4,415	)			1,261				(4,929	)			1,306
Income taxes			396				(10,840	)			(152	)			(10,444	)			447
Accrued restructuring charges			320				72				95				392				(161	)
Other accrued liabilities			743				(253	)			(447	)			490				(888	)
Net cash used in operating activities			(2,403	)			(6,902	)			(7,994	)			(9,305	)			(14,034	)
Cash flows from investing activities:
Purchases of property and equipment and other intangible assets			(23	)			(235	)			(163	)			(258	)			(1,467	)
Acquisition of businesses, net of cash acquired			—				—				—				—				(204	)
Net cash used in investing activities			(23	)			(235	)			(163	)			(258	)			(1,671	)
Cash flows from financing activities:
Proceeds from stock purchases under stock option and stock purchase plans			5				—				—				5				804
Repurchase of common stock			(81	)			(21	)			(52	)			(102	)			(87	)
Principal payments under capital lease obligations			(146	)			(135	)			—				(281	)			—
Net cash provided by (used in) financing activities			(222	)			(156	)			(52	)			(378	)			717
Effect of changes in exchange rates			103				100				(391	)			203				(114	)
Net decrease in cash and cash equivalents			(2,545	)			(7,193	)			(8,600	)			(9,738	)			(15,102	)
Cash and cash equivalents at beginning of period			27,869				35,062				31,219				35,062				37,721
Cash and cash equivalents at end of period		$	25,324			$	27,869			$	22,619			$	25,324			$	22,619

See notes to unaudited condensed consolidated financial statements

PHOENIX TECHNOLOGIES LTD.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) AND
NET EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS
(in thousands, except per share data)
(unaudited)

		Three months ended
		March 31,				December 31,				March 31,				Six months ended March 31,
		2010				2009				2009				2010				2009
GAAP net income (loss)		$	(6,872	)		$	1,062			$	(55,148	)		$	(5,810	)		$	(64,491	)
Less: Loss from discontinued operations(1)			(4,444	)			(118	)			(11,536	)			(4,562	)			(12,490	)
GAAP net income (loss) from continuing operations			(2,428	)			1,180				(43,612	)			(1,248	)			(52,001	)
Equity-based compensation expense (benefit)(2)			(1,243	)			1,715				2,371				472				5,430
Restructuring and asset impairment(3)			755				481				957				1,236				1,050
Amortization of purchased intangible assets(4)			332				331				747				663				1,698
Impairment of intangible assets(5)			—				—				10,483				—				10,483
Impairment of goodwill(5)			—				—				23,872				—				23,872
Non-GAAP net income (loss) from continuing operations		$	(2,584	)		$	3,707			$	(5,182	)		$	1,123			$	(9,468	)
Non-GAAP earnings (loss) per share from continuing operations:
Basic		$	(0.07	)		$	0.11			$	(0.18	)		$	0.03			$	(0.33	)
Diluted		$	(0.07	)		$	0.11			$	(0.18	)		$	0.03			$	(0.33	)
Shares used in earnings (loss) per share calculation:
Basic			35,035				35,019				28,560				35,027				28,465
Diluted			35,035				35,019				28,560				35,037				28,465