Magma Beats Guidance for Third Quarter with Revenue of $30.7 Million

Magma Design Automation reported revenue of $30.7 million for its fiscal 2009 third quarter, ended Feb. 1, 2009. This exceeded the revenue guidance range of $28 million to $29 million the company issued on Dec. 4, 2008. Third-quarter revenue decreased 45 percent from the $55.7 million reported for the year-ago third quarter, ended Jan. 6, 2008. In accordance with generally accepted accounting principles (GAAP), Magma reported an estimated net loss of $(78.1) million, or $(1.73) per share (basic and diluted), for the third quarter. This result was below the guidance range issued by the company on Dec. 4, 2008 of a loss between $(0.67) and $(0.65) a share and compares to a net loss of $(5.9) million, or $(0.14) per share (basic and diluted), for the year-ago third quarter. 

Magma's non-GAAP net income was a net loss of $(4.3) million for the quarter, or $(0.09) per share (diluted). This result was better than the guidance range issued by the company on Dec. 4, 2008 of a loss between $(0.17) and $(0.15) a share and compares to non-GAAP net income of $7.5 million, or $0.16 per share (diluted), for the year-ago third quarter. For Magma's fiscal 2009 fourth quarter, ending May 3, 2009, the company expects total revenue in the range of $33.0 million to $34.0 million. GAAP net loss per share is expected to be in the range of $(0.39) to $(0.37) and non-GAAP net income per share is expected to be in the range of $0.01 to $0.03.

For Magma's fiscal year 2009, ending May 3, 2009, the company expects total revenue in the range of $146.0 million to $147.0 million, an increase from the previous guidance range of $144.0 million to $146.0 million. Magma provides non-GAAP financial information to assist investors in assessing its current and future operations in the way that Magma's management evaluates those operations. Magma believes that this non-GAAP information provides useful information to investors by excluding the effect of some expenses that are required to be recorded under GAAP but that Magma believes are not indicative of Magma's core operating results, or that are expected to be incurred over a limited period of time.