SAN FRANCISCO Top-tier EDA supplier Magma Design Automation Inc. posted net losses for its fiscal fourth quarter and fiscal 2006, despite record fourth quarter revenue of $44 million and record revenue of $164 million for the fiscal year.
Magma reported a fiscal fourth quarter net loss of $6.2 million, or 18 cents per share, based on generally accepted accounting principles (GAAP), up nearly 11 percent from the net loss of $5.6 million that the company reported for the year-earlier fourth quarter. Magma reported a GAAP net loss of $20.9 million, or 61 cents per share, for the fiscal year, a dramatic increase from the $8.6 million loss Magma reported for fiscal 2005.
Magma reported fiscal fourth quarter revenue of $44 million, up 23 percent from the $35.7 million that the company reported for the fourth quarter of fiscal 2005. Magma (Santa Clara, Calif.) reported revenue of $164 million for the fiscal year, an increase of 12.4 percent over the $145.9 million the company report in fiscal 2005.
Magma said the cost of its patent litigation accounted for $2.8 million, or seven cents per diluted share, in the quarter.
"We made significant accomplishments in the fourth quarter and fiscal 2006 as a whole," said Rajeev Madhavan, Magma chairman and CEO, in a statement. "We achieved record revenue in each of the last four quarters and all key financial metrics finished within or above our target ranges. More and more customers are finding Magma to be the best software for designing large, complex and high-performance designs, and many have expressed a great deal of early interest in our recently announced Talus product line. We enter fiscal 2007 with a great deal of momentum."
Magma said it expects total revenue for the first quarter of 2007 to be in the range of $38 million to $42 million. Magma expects its GAAP net loss to more than double next quarter, reaching $12 million to $13.5 million. On a non-GAAP basis, excluding charges, Magma expects net income to be 0 to 4 cents per share.
Also Thursday, Magma named Pete Teshima, former vice president of finance, to the position of chief financial officer. Teshima succeeds Greg Walker, who has been Magma's CFO since 2002. Magma said Walker would remain with the company, first facilitating a smooth transitions and then working on a number of ongoing operation projects.