CIMdata PLM Industry Summary Online Archive
27 January 2005
Financial News
Magma Reports Record Revenue and EPS for Third Quarter
Magma Design Automation Inc., a provider of chip design solutions, announced financial results for its fiscal 2005 third quarter, ended Dec. 31, 2004.
Magma reported record revenue of $37.3 million for the quarter, compared to $31.1 million for the quarter ended Dec. 31, 2003, an increase of 20 percent.
In accordance with generally accepted accounting principles (GAAP), Magma reported a net loss for the quarter of $(0.7) million, or $(0.02) per share (basic and diluted), compared to net income of $3.8 million, or $0.09 per share (diluted), for the quarter ended Dec. 31, 2003. Magma also reported record pro forma net income of $8.4 million and record pro forma earnings per share (EPS) of $0.20 (diluted) for the third quarter of fiscal 2005, compared to pro forma net income of $6.9 million and pro forma EPS of $0.16 (diluted) for the third quarter of fiscal 2004, an increase of 22 percent. Pro forma net income excludes amortization of developed technology, miscellaneous restructuring and marketing expenses, amortization of intangibles, amortization of deferred stock compensation, impairment of investment, in-process research and development charges and tax effects of pro forma adjustments.
For the nine-month period ended Dec. 31, 2004, Magma reported revenue of $110.3 million, compared to $79.7 million for the nine-month period ended Dec. 31, 2003, an increase of 38 percent. In accordance with GAAP, Magma reported net loss for the recently completed nine-month period of $(3.0) million, or $(0.09) per share (basic and diluted), compared to net income of $7.2 million, or $0.18 per share (diluted), for the nine-month period ended Dec. 31, 2003. Magma reported pro forma net income of $23.7 million, or $0.56 per share (diluted), for the nine-month period ended Dec. 31, 2004. This compares to pro forma net income of $18.1 million, or $0.44 per share (diluted), for the nine-month period ended Dec. 31, 2003, an increase of 31 percent.
Magma provides pro forma financial information to assist investors in understanding the company's operating results and business trends. Pro forma financial data is not prepared in accordance with GAAP, and should not be viewed as an alternative to GAAP financial information. Our pro forma financial data may be materially different from pro forma measures used by other companies.
"Our third quarter continued Magma's growth in revenue for the ninth consecutive quarter," said Rajeev Madhavan, chairman and CEO of Magma. "During the next several quarters we expect to announce new products that will further enhance our leadership over our competitors and enable us to continue that growth."
Business Outlook
Magma's performance in terms of orders, revenue and EPS in its quarter ended Dec. 31, 2004 was within the target ranges established during Magma's Oct. 28, 2004 earnings call. For Magma's fiscal 2005 fourth quarter, ending March 31, 2005, the company expects total revenue in the range of $39 million to $42 million, pro forma EPS in the range of $0.18 to $0.22 and GAAP EPS in the range of $0.00 to $0.04. A schedule showing a reconciliation of the pro forma business outlook to GAAP outlook is included in this release.
Consistent with company practice of providing financial guidance at the time of each quarterly earnings announcement, Chief Financial Officer Greg Walker will discuss Magma's business outlook during the company's live earnings call at 1:30 p.m. PST today. More detailed information on the company's business outlook is available in the "Financial Disclosure Supplement" document available in the Investor Relations section of the Magma website at http://investor.magma-da.com/home.cfm .
The business outlook targets set forth in this press release and on Magma's website represent the company's expectations only as of the date of publication and should not be viewed as a statement about Magma's expectations after this date. Although this information will remain available on Magma's website for reference purposes, its continued availability does not indicate that the company is reaffirming or confirming its continued validity. By publishing this guidance, Magma has not assumed any additional obligation to update this information on any date after its publication today.
Magma will discuss the financial results for the recently completed quarter, including guidance going forward, during a live earnings call today at 1:30 p.m. PST (4:30 p.m. EST).
Following completion of the call, a webcast replay of the call will be available at http://investor.magma-da.com/home.cfm through Feb. 3, 2005. Those without Internet access may listen to a replay of the call by telephone through Feb. 3 by calling:
U.S. & Canada: (800) 642-1687, conference ID #3274289
Elsewhere: (706) 645-9291, conference ID #3274289
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