Magma reports revenue of $139.3 million for fiscal 2011

SAN JOSE, USA: Magma Design Automation Inc., a provider of chip design software, reported revenue of $38 million for its fourth quarter and $139.3 million for its 2011 fiscal year, both ended May 1, 2011.

"The fourth quarter continued a string of solid financial performance and capped off a great fiscal 2011, as for the ninth consecutive quarter we met or exceeded all guidance targets and generated cash," said Rajeev Madhavan, Magma chairman and chief executive officer.

"Bookings were up strongly and exceeded the high end of our guidance range as the semiconductor industry's push to 28-nanometer and smaller designs created opportunity for Magma's entire product line. Our core digital platform Talus gained traction, benefitting from the recently announced Talus Vortex 1.2 and Talus Vortex FX. In analog implementation, Titan added five new logos and now has a total of 25 customers, primarily added during fiscal 2011. The FineSim circuit simulation products had another year of great growth as they continued to replace legacy simulators. And our partnership with Applied Materials generated a lot of excitement for our yield management products and created new opportunities for growth by that product group."

GAAP results
In accordance with generally accepted accounting principles (GAAP), Magma reported net income of $1.7 million, or $0.03 per share (basic) and $0.02 per share (diluted), for the fourth quarter, compared to a net loss of $(0.7) million, or $(0.01) per share (basic and diluted), for the year-ago fourth quarter. For fiscal 2011 Magma reported a GAAP net loss of $(3.3) million, or $(0.05) per share (basic and diluted), compared to a net loss of $(3.3) million, or $(0.07) per share (basic and diluted), for fiscal 2010.

Non-GAAP results
Magma's non-GAAP net income was $6.1 million for the quarter, or $0.09 per share (basic and diluted), compared to non-GAAP net income of $3.7 million, or $0.07 per share (basic) and $0.06 per share (diluted), for the year-ago fourth quarter. For fiscal 2011 Magma's non-GAAP net income was $18.8 million, or $0.31 per share (basic) and $0.28 per share (diluted), compared to non-GAAP net income of $9.1 million, or $0.18 per share (basic) and $0.17 (diluted), for the year-ago fiscal year.

Non-GAAP net income for the fourth quarter and full fiscal year of 2011 excludes the effects of amortization of developed technology, amortization of intangible assets, stock-based compensation, amortization of debt issuance costs and debt premium accretion, charges associated with equity and other investments, restructuring charges and the related provision for income taxes. Non-GAAP net income for the fourth quarter and full fiscal year of 2010 excludes the effects of amortization of developed technology, amortization of intangible assets, stock-based compensation, amortization of debt issuance costs and debt discount/premium accretion, charges associated with equity and other investments, restructuring charges and the related provision for income taxes.