SAN FRANCISCO Investors reacted after three of EDA's largest companies in terms of market capitalization announced quarterly earnings this week. Investors rewarded Cadence Design Systems Inc. and Mentor Graphics for strong quarters and rosy outlooks, while punishing Magma Design Automation Inc. for posting a net loss and saying it expects another.
Shares of Magma slipped by 10 percent Friday (April 28), closing at $7.58, one day after the company posted a fiscal fourth quarter loss of $6.2 million, based on generally accepted accounting principles (GAAP), and said it expects its net loss for the current quarter to double.
Nearly 1.3 million shares of Magma (Santa Clara, Calif.) changed hands, the second time the stock's volume was over 1 million this week. Magma's volume reached nearly 1.7 million in Nasdaq trading Wednesday, on the eve of the company's fiscal fourth quarter and fiscal 2006 earnings announcement. Magma's volume seldom exceeds 1 million.
Investor's reacted positively to Cadence Design Systems' first quarter earnings,
issued Wednesday. Calling it a positive quarter in all respects, Cadence posted a year-to-year revenue increase of 12 percent and 22-fold year-to-year increase in GAAP net income.
Shares of Cadence (San Jose, Calif.) rose by 3 percent Wednesday, closing at $18.74, a new 52-week high. Shares of Cadence continued to gain in after-hours trading Thursday and throughout the trading day Friday, closing at $18.93.
Shares of Mentor (Wilsonville, Ore.) slipped 1 cent to close at $13.13, one day after surging more than 10 percent to establish a new 52-week high. Trading volume topped 3.7 million shares Thursday, as investors reacted to Mentor's first quarter financial results, released Wednesday, and in particular the raising of 2006 revenue guidance to approximately $762 million from $755 million.