SAN FRANCISCO—EDA vendor Magma Design Automation Inc. said Thursday (Aug. 26) it met or exceeded all financial guidance for the quarter ended Aug. 1, posting a net loss in accordance with generally accepted accounting principles (GAAP) of $3.3 million on revenue of $32.6 million.
Magma's quarterly sales increased 13 percent year-to-year, the company said. The GAAP net loss, which equates to 6 cents per diluted share, was narrowed from a GAAP net loss of $4.3 million in the year-ago quarter, Magma (San Jose, Calif.) said.
"We're pleased that we again met or exceeded all our financial guidance and are off to a good start for the year," said Rajeev Madhavan, Magma chairman and CEO, in a statement.
On a non-GAAP basis, excluding charges, Magma reported a net income of $2.9 million, or 6 cents per share, up from a non-GAAP net income of $1.7 million for the year-ago quarter.
A consensus of three analysts surveyed by Yahoo Finance estimated that Magma's quarterly sales would be $31.1 million with non-GAAP earnings of 3 cents per share.
For the current quarter, ending Oct. 31, Magma said it expects to report revenue of between $33 million and $33.5 million with a GAAP net loss of 6 to 7 cents per share. For its current fiscal year, ending May 1, 2011, Magma expects revenue of $132 million to $135 million and a GAAP net loss of 17 to 18 cents per share.
Good news. But the revenues are still on the low side, even when the industry is peaking. Makes me wonder how much room for growth is available for an EDA company.
I doubt whether magma will be acquired by the big 2. Because there is too much technology overlap. Especially for synopsys. The best bet for Magma will be a merger with Mentor.
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