MAGMA DESIGN AUTO 
By
SAN JOSE, Calif., Dec. 1, 2011 (GLOBE NEWSWIRE) -- Magma®
Design Automation Inc. (Nasdaq:LAVA), a provider of chip
design software, today reported revenue of $38.3 million for
its fiscal 2012 second quarter ended Oct. 30, 2011, up 13
percent from the $33.9 million reported in the year-ago
second quarter.
"During the second quarter, Magma made great business
and technical progress-adding a record number of new logos
and generating positive cash flow for the 11th consecutive
quarter," said Rajeev Madhavan, Magma chairman and chief
executive officer. "Our product portfolio is the
strongest it's ever been, and as a result, the customer
adoption rate is accelerating. The momentum of the Titan™
analog implementation and optimization system continues to
grow with more than 30 customers now deploying it in their
design flows. Our core Talus® implementation platform added 4
new logos and 8 existing customers extended their contracts.
Our sign-off tools gained traction this quarter with Tekton™
now in use by more than 25 customers and QCP™ adding 10 new
logos. The FineSim™ circuit simulator added 9 new
logos."
Additional information about product enhancements and
customer adoption is available in Magma's Second Quarter
Product
Update on the Magma website at
www.magma-da.com/2Q2012_Update.
On November 30, 2011, Magma announced the company has entered
into a definitive agreement to be acquired by Synopsys
(Nasdaq:SNPS), a world leader in software and IP used in the
design, verification and manufacture of electronic components
and systems. The combination of the two companies'
technologies, development capabilities, support teams and
sales channels will provide chip designers with greater
access to state-of-the art electronic design automation (EDA)
solutions that enable more profitable silicon.
Due to the acquisition announcement Magma will not be holding a conference call to discuss fiscal second quarter results.
GAAP ResultsIn accordance with generally accepted accounting principles (GAAP), Magma reported net income of $3.0 million, or $0.04 per share (basic and diluted) for the second quarter, compared to a net loss of $(2.7) million, or $(0.04) per share (basic and diluted), for the year-ago second quarter.
Non-GAAP Results
Magma's non-GAAP net income was $7.1 million for the
second quarter, or $0.10 per share (basic and diluted), which
compares to non-GAAP net income of $4.3 million, or $0.07 per
share (basic and diluted), for the year-ago second
quarter.
Non-GAAP net income for the second quarter of fiscal 2012
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, other legal and
accounting costs related to a special investigation, and the
related provision for income taxes. Non-GAAP net income for
the second quarter of fiscal 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, inducement
fees on conversion of debt, charges associated with equity
and other investments, restructuring charges and the related
provision for income taxes. A reconciliation of our non- GAAP
results to GAAP results is included in this press
release.
In the second quarter, Magma generated cash flow from
operations of approximately $2.4 million.
Due to the pendency of the acquisition of Magma by Synopsys announced on November 30, 2011, Magma is withdrawing all prior financial guidance and will no longer provide any new financial guidance.
Presentation and Disclosure of Revenue
For the second quarter of fiscal 2012, revenue and cost of
revenue is reported in Magma's Condensed
Consolidated
Statement of Operations in two categories: Licenses and
Services. Previously, revenue and cost of revenue was
reported in three categories: Licenses, Bundled licenses and
services, and Services. Magma management has concluded that
the results of the Bundled Licenses and Services category of
revenue do not indicate a material trend in the historical or
future performance of its operations. Bundled licenses and
services revenue and cost of revenue are divided into their
component parts and included with either Licenses or
Services. Presentation of prior period revenue and cost of
revenue has been adjusted to conform to the current period.
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 is
useful 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.
Magma's management evaluates and makes operating
decisions about its business operations primarily based on
bookings, revenue and the core costs of those business
operations. Management believes that the amortization of
developed technology and intangible assets, stock-based
compensation, amortization of debt issuance costs and debt
discount/premium accretion, inducement fees on conversion of
debt, charges associated with equity and other investments,
acquisition-related expenses, restructuring charges and the
related provision for income taxes, and other significant
unusual items are not operating costs of its core software
and service business operations. Therefore, management
presents non-GAAP financial measures, along with GAAP
measures, in this earnings release by excluding these items
from the period expenses. The income statement line items
affected are as follows: (1) cost of revenue, licenses; (2)
cost of revenue, services; (3) operating expenses, research
and development; (4) operating expenses, sales and marketing;
(5) operating expenses, general and administrative; (6)
operating expenses, amortization of intangible assets; (7)
operating expenses, restructuring charges; (8) other income
(expense), net; ( provision for income taxes; and (10) net
income (loss) per share.
For each such non-GAAP financial measure, the adjustment
provides management with information about Magma's
underlying operating performance that enables a more
meaningful comparison of its financial results in different
reporting periods. For example, since Magma does not acquire
businesses on a predictable cycle, management excludes
acquisition-related charges, such as amortization of
intangible assets, to make more consistent and meaningful
evaluations of Magma's operating
expenses. Similarly, since Magma does not undertake
significant restructuring or realignments on a predictable
cycle, management would have difficulty evaluating
Magma's profitability as measured by gross profit,
operating profit, income before taxes and net income on a
period-to-period basis unless it excluded these charges.
Management also uses these measures to help make budgeting
decisions between those expenses that affect operating
expenses and operating margin (such as research and
development, sales and marketing, and general and
administrative expenses), and those expenses that affect cost
of revenue and gross margin (such as product development
expenses).
Further, the availability of non-GAAP financial information
helps management track actual performance relative to
financial targets, including both internal targets and
publicly announced targets. Making this non-GAAP financial
information available also helps investors compare
Magma's performance with the announced operating results
of its principal competitors, which regularly provide similar
non-GAAP financial information.
Management recognizes that the use of these non-GAAP measures
has limitations, including the fact that management must
exercise judgment in determining whether some types of
charges, such as stock-based compensation relating to stock
grants and acquisition-related charges, should be excluded
from non-GAAP financial measures. Management believes,
however, that providing this non-GAAP financial information
facilitates consistent comparison of Magma's financial
performance over time. Magma has historically provided
non-GAAP results to the investment community, not as an
alternative but as a supplement to GAAP information, to
enable investors to evaluate Magma's core operating
performance in the way that management does.
This press release contains forward-looking statements within
the meaning of the "safe harbor" provision of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements in quotations
from Magma's management. These forward-looking
statements are subject to risks and uncertainties that could
cause actual results to differ materially from Magma's
current expectations. Factors that could cause or contribute
to such differences include, but are not limited to: delays
in or failure to satisfy required conditions to the closing
of the proposed merger, including the receipt of required
regulatory approvals with respect to the transaction and
approval of the acquisition by Magma's stockholders;
failure to consummate or delay in consummating the
transaction for other reasons; the possibility that the
expected benefits of the transaction may not materialize as
expected; disruption from the transaction making it more
difficult to maintain relationships with customers and
employees; our reliance on a small number of customers for a
significant portion of our revenue, which could cause our
revenue to decline if these customers delay orders or fail to
renew licenses or if we are unable to maintain or develop
relationships with current or potential customers; the effect
of restrictive covenants in our debt arrangements which could
limit our ability to operate our business; the substantial
amount of Magma's indebtedness, which could adversely
affect our financial position; our ability to generate
sufficient operating cash flow or alternatively obtain
external financing; customer
payment defaults that may cause us to be unable to recognize
revenue from backlog, and changes in the type of orders
comprising backlog that could affect the proportion of
revenue recognized from backlog each quarter, which could
have a material adverse effect on our financial condition and
results of operations; actions by our competitors that hold a
large share of the electronic design automation (EDA) market
and increasing competition among EDA vendors as customers
tightly contr their EDA spending and use fewer vendors to
meet their needs; weaker-than-anticipated sales of
Magma's products and services; weakness in the
semiconductor or electronic systems industries; a potential
failure of customers to adopt, or to adopt at a sufficiently
fast rate, 28-nanometer and smaller design geometries on a
large scale; Magma's ability to integrate acquired
businesses and technologies and keep pace with evolving
technology standards; the possibility of litigation
(including related to the proposed merger) and potentially
higher-than-anticipated costs of litigation related to patent
infringement and other intellectual property claims;
potentially higher-than-anticipated costs of compliance with
regulatory requirements, including
those relating to internal control over financial reporting;
the ability to manage expanding operations; the ability to
attract and retain the key management and technical personnel
needed to operate Magma successfully; the ability to continue
to deliver competitive products to customers; and changes in
accounting rules. Further discussion of these and other
potential risk
factors may be found in Magma's public filings with the
Securities and Exchange Commission ( www.sec.gov), including its
Form
10-Q for the fiscal quarter ended July 31, 2011. Magma
undertakes no obligation to update these forwar-dlooking
statements to reflect subsequent events or circumstances.
In connection with the proposed merger, Magma will file a
proxy statement and other relevant documents concerning the
transaction with the Securities and Exchange Commission
("SEC"). The definitive proxy statement will be
mailed to stockholders of Magma. Investors and stockholders
of Magma are urged to read the definitive proxy statement and
other relevant
documents when they become available because they will
contain important information about the transaction. Copies
of these documents (when they become available) may be
obtained free of charge by making a request to Magma's
Investor Relations Department either in writing to Magma
Design Automation, Inc., 1650 Technology Drive, San Jose,
California 95110 or by telephone to (408) 565-7799. In
addition, documents filed with the SEC by Magma may be
obtained free of charge at the SEC's website at www.sec.govor by
clicking on "SEC Filings" in the
"Investors" section of Magma's website at www.magma-da.com.
Magma, Synopsys and their respective directors and executive
officers may be deemed to be participants in the solicitation
of proxies from Magma's stockholders in connection with
the proposed transaction. Information regarding Magma's
directors and executive officers is contained in Magma's
proxy statement for its 2011 Annual Meeting of Stockholders,
which was filed with the SEC on August 29, 2011. This
document is available free of charge in the manner described
above. Information about Synopsys' directors and
executive officers is set forth in Synopsys' proxy
statement for its 2011 Annual Meeting of
Stockholders, which was filed with the SEC on February 10,
2011, and its Annual Report on Form 10-K for the year ended
October 31, 2010, which was filed with the SEC on December
17, 2010. These documents are available free of charge at th
SEC's web site at www.sec.gov, and from Synopsys by
contacting Investor Relations by mail at Synopsys, Inc., 700
East Middlefield Road, Mountain View, CA 94043, Attn:
Investor Relations Department, or by going to Synopsys'
Investor Relations page on its corporate web site at www.synopsys.com. Additional
information regarding the interests of Magma's directors
and executive officers who may be deemed to be participants
in the solicitation of proxies in connection with the
transaction, including their respective interest in the
transaction by security holdings or otherwise, will be set
forth in a definitive proxy statement that Magma intends to
file with the SEC.
Leading semiconductor companies worldwide use Magma's
electronic design automation (EDA) software to produce chips
for a wide variety of vertical markets including tablet
computing, mobile devices, electronic games, digital video,
networking, military/aerospace and memory. Silicon One,
Magma's technology solutions for emerging silicon,
address time to market, product differentiation, cost and
performance while making silicon more profitable. Magma
products include software for digital design, analog
implementation, mixed-signal design, physical verification,
circuit simulation, characterization and yield management.
The company maintains headquarters in San Jose, Calif., and
offices throughout North America, Europe, Japan, Asia and
India. Magma's stock trades on Nasdaq under the ticker
symbol LAVA. Follow Magma on Twitter at
www.Twitter.com/MagmaEDAand on Facebook at
www.Facebook.com/Magma. Visit Magma Design Automation on
the Web at
www.magma-da.com.
Magma and Talus are registered trademarks and FineSim, QCP
and Tekton are trademarks of Magma Design Automation Inc. All
other product, company and institution names are trademarks
or registered trademarks of their respective owners.
(unaudited)
ASSETSCurrent assets:
October 30, 2011 May 1, 2011Cash and cash equivalents $50,809 $47,088
Accounts receivable, net 24,377 35,530
Prepaid expenses and other current assets 4,1763,915
Total current assets 79,362 86,533
Property and equipment, net | 5,700 | 6,066 |
Intangibles, net | 2,351 | 3,691 |
Goodwill | 7,415 | 7,415 |
Other assets | 2,604 | 2,767 |
Total assets | $97,432 | $106,472 |
Current liabilities:
Accounts payable | $3,133 | $3,697 |
Accrued expenses | 12,934 | 14,160 |
Current portion of term debt | 1,875 | 3,750 |
Current portion of other long-term liabilities | 1,083 | 1,199 |
Deferred revenue | 21,528 | 34,390 |
Total current liabilities | 40,553 | 57,196 |
Convertible notes, including debt premium | 3,372 | 3,395 |
Long-term portion of term debt | 19,500 | 19,188 |
Long-term tax liabilities | 1,814 | 1,703 |
Other long-term liabilities | 979 | 1,270 |
Total liabilities | 66,218 | 82,752 |
Stockholders' equity: | ||
Common stock | 7 | 7 |
Additional paid-in capital | 452,555 | 447,328 |
Accumulated deficit | (384,199) | (387,087) |
Treasury stock at cost | (32,615) | (32,615) |
Accumulated other comprehensive loss | (4,534) | (3,913) |
Total stockholders' equity | 31,214 | 23,720 |
Total liabilities and stockholders' equity | $97,432 | $106,472 |
(in thousands, except per share data) (unaudited)
For the Three Months Ended For the Six Months Ended
Revenue:*
October 30,
2011
October 31,
2010
October 30,
2011
October 31,
2010
Licenses* $31,551 $26,903 $58,108 $51,242
Services* 6,7327,02315,48115,240
Total revenue 38,28333,92673,58966,482
Cost of revenue:*
Licenses* | 542 998 1,161 1,934 |
Services* | 4,011 4,065 8,011 7,871 |
Total cost of revenue | 4,553 5,063 9,172 9,805 |
Gross profit | 33,730 28,863 64,417 56,677 |
Operating expenses:
Research and development 12,698 11,747 25,483 24,006
Sales and marketing 11,481 11,319 21,891 21,886
General and administrative 5,218 4,625 11,389 9,315
Amortization of intangible assets 149 289 351 545
Restructuring charge | 520 182 1,246 168 |
Total operating expenses | 30,066 28,162 60,360 55,920 |
Operating income | 3,664 701 4,057 757 |
Other income (expense):
Interest income 23 20 37 49
Interest expense and amortization (454) (537) (936) (1,343) Valuation gain, net -- -- -- 38
Loss on extinguishment of debt -- -- -- (2,093)
Inducement fees on conversion of notes due 2014 -- (2,279) -- (2,279)
Other (expense), net | 158 (712) 552 (863) |
Total other (expense), net | (273) (3,508) (347) (6,491) |
Net income (loss) before income taxes | 3,391 (2,807) 3,710 (5,734) |
Benefit from (provision for) income taxes | (403) 93 (823) (238) |
Net income (loss) $2,988($2,714)$2,887($5,972) Net income (loss) per share - basic $0.04($0.04)$0.04($0.11)
Net income (loss) per share - diluted $0.04($0.04)$0.04($0.11) Shares used in calculation:
Basic 68,45860,54268,12156,553
Diluted 72,94760,54271,41056,553
* Revenue and cost of revenue for the three months and six months ended October 31, 2010 has been adjusted to conform to the presentation for the three months and six months ended October 30, 2011.
Reconciliation of Second Quarter GAAP and Non-GAAP Financial Results Three Months Ended Six Months Ended Statement of Operations Reconciliation October 3 October 3 October 3 October 3(in thousands)
2011 2010 2011 2010
GAAP net income (loss) $2,988 ($2,714) $2,887 ($5,972) Cost of license revenue
Amortization of developed technology 493 834 1,030 1,660
Cost of service revenue
Stoc-kbased compensation 96 578 205 848
Research and development
Stoc-kbased compensation 983 1,103 1,855 2,338
Acquisition related expenses --------
983 1,103 1,855 2,338
Sales and marketing
Stoc-kbased compensation 536 1,140 1,187 1,865
General and administrative
Stoc-kbased compensation 1,049 764 1,643 1,517
Other legal, accounting costs 108--1,969--
1,157 764 3,612 1,517
Amortization of intangible assets | 149 | 289 | 351 | 545 |
Restructuring charges | 520 | 183 | 1,246 | 169 |
Stock-based compensation | 1,049 | 764 | 1,643 | 1,517 |
Other income (expense) | ||||
Interest expense, amortization of debt issuance cost, and debt discount/premium accretion | 56 | 44 | 112 | 153 |
(Gain) loss on extinguishment of debt | -- | -- | -- | 2,093 |
Inducement fees on conversion of notes due 2014 | -- | 2,279 | -- | 2,279 |
Loss (gain) on equity and other investments 1231(470)(64)
68 2,354 (358) 4,461
Provision for income taxes 67(199)110(188) Non-GAAP net income $7,057$4,332$12,125$7,243
Reconciliation of Second Quarter GAAP and Non-GAAP Financial Results Earnings/(Loss) Per Share Reconciliation Three Months Ended Six Months Ended October 30, 2011 October 31, 2010 October 30, 2011 October 31, 2010GAAP net income (loss) $0.04 ($0.04) $0.04 ($0.11) Cost of license revenue
Amortization of developed technology 0.01 0.01 0.02 0.03
Cost of service revenue
Stock-based compensation 0.00 0.01 0.00 0.02
Research and development
Stock-based compensation 0.01 0.02 0.03 0.04
Acquisition related expenses --------
0.01 0.02 0.03 0.04
Sales and marketing
Stock-based compensation 0.01 0.02 0.02 0.03
General and administrative
Stock-based compensation 0.02 0.01 0.02 0.03
Other, legal accounting costs 0.00--0.03--
0.02 0.01 0.05 0.03
Amortization of intangible assets 0.00 0.00 0.01 0.01
Restructuring charges 0.01 0.00 0.02 0.00
Other income (expense)
Interest expense, amortization of debt issuance
cost, and debt discount/premium accretion 0.00 0.00 0.00 0.00 (Gain) loss on extinguishment of debt -- -- -- 0.04
Inducement fees on conversion of notes due 2014 -- 0.04 -- 0.04
Loss (gain) on equity and other investments 0.000.00(0.01)0.00
0.00 0.04 (0.01) 0.08
Provision for income taxes | 0.00 0.00 0.00 0.00 |
Non-GAAP net income | $0.10 $0.07 $0.18 $0.13 |
No-nGAAP net income (diluted)* | $0.10 $0.07 $0.17 $0.11 |
Basic shares used in calculation
Diluted shares used in calculation*
*Gives effect to the potential issuance of common stock upon conversion of convertible subordinated notes, if dilutive, and to the effect of all dilutive potential common shares outstanding during the period, including stoc options, using the treasury stock method
CONTACT: Magma Design Automation Inc.
Media:
Monica Marmie
Director, Corporate Marketing
(408) 565-7689 mmarmie@magma-da.com
Investors:
Greg Wagenhoffer
Vice President, Corp Development & Treasurer
(408) 565-7799 gregw@magma-da.com
| distribué par | Ce noodl a été diffusé par Magma Design Automation Inc. et initialement mise en ligne sur le site http://www.magma-da.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2011-12-01 23:25:48 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
| Documents associés | |
| Magma Reports $38.3 Million Second-Quarter Revenue, Exceeding Guidance |
