SAN JOSE, Calif In yet another sign that the semiconductor industry recovery is trickling down to the EDA industry, Magma Design Automation Inc. reported record revenue and profits in its fourth quarter and fiscal year ended March 31, 2004.
Magma (Santa Clara, Calif.), an RTL and GDSII tool vendor ranking fourth in the EDA industry, reported fourth-quarter revenues totaling $34 million, compared to $20.5 million for the year-ago fourth quarter, an increase of 66 percent. For its fiscal year ended March 31, Magma reported revenue of $113.7 million, compared to $75.1 million the previous year, an increase of 51 percent.
"The fourth quarter and 2004 fiscal year were both great successes for Magma," said Rajeev Madhavan, chairman and CEO. "In the last quarter we continued to add customers at a double-digit rate. Blast Create, Blast Rail and Blast Plan Pro demonstrated increased market momentum."
On a call with analysts, Madhavan said Magma is seeing growing acceptance of 90-nm technology. The company said it booked a large deal that required approval from NEC's board of directors. Company executives said the deal was not booked in time to be reported Magma's results.
Madhavan said the NEC booking likely displaced both Cadence and Synopsys seats, primarily in Japan but to a lesser extent to NEC's operation in Europe and the United States.
The company reported quarterly net income, excluding certain non-cash charges, of $7.2 million, or $0.17 per diluted share, compared to $4.1 million, or $0.13 per diluted share for the same period last year.
Pro forma net income for the year, excluding non-cash charges, totaled $25 million, or $0.62 per diluted share for the fiscal year ended March 31. That compared to net income of $11.3 million, or $0.35 per diluted share for the previous year.
Magma also said it has completed the Mojave acquisition, resulting in an initial consideration of $25 million for shareholders, half in stock and half in cash. Provided certain technology milestones are achieved, Magma said it would also make periodic payments half in stock, half in cash potentially totaling $115 million. The payments are based on product orders over a period ending on March 31, 2009.
Magma officials said that for the first quarter of fiscal 2005, the company expects total revenue in the range of $34 million to $36 million, while earnings per share are expected to be in the range of $0.16 to $0.20.
The company raised orders, revenue and EPS guidance for the second half of the year. The company expects a 5 percent increase in orders and 10 percent increase in revenues guidance for the second half of the year, adding $0.02 per share. For fiscal 2005 Magma predicts revenues will be in the range of $153 million to $167 million.