Magma Design Automation, Inc. (NASDAQ:LAVA) is currently trading at $4.43, with no change from its previous day close after it reported 14% increase in revenue of $33.9 million for its fiscal 2011 second quarter ended Oct. 31, 2010, from the $29.7 million reported in the year-ago second quarter, above the street estimate of $33.3 million.
A provider of chip design software has 52 week trading range of $2.24 - $4.60 and it market capitalization stands at $263.04 million at a volume of 491,079 shares. The stock is trading above its 50 day & 200 day moving average of $4.2 & $3.47 respectively.
The Company reported a net loss of $2.7 million, or 4 cents a share for the second quarter, compared to net income of $4.3 million, 8 cents a share, for the year-ago second quarter. Pro-forma EPS of 7 cents a share has been reported, a cent above the street consensus.
Yesterday, Magma unveiled two new P&R tools: Talus 1.2 and Talus Vortex FX. It is believed that these products will drive a significant leg of growth next year as the P&R tools have historically accounted for more than 60% of total revenues. Magma also announced a strategic licensing agreement with Applied Materials (AMAT – $12.91) in which the two companies will co-develop and co-market a new line of yield enhancement products.
LAVA reported its seventh consecutive quarter of positive cash flow and reduced its outstanding convertible debt (due in 2014) from $23.9 million to $3.4 million sequentially. In addition, the company’s net cash position increased from $0.12 per share to $0.57 per share.
For Magma's fiscal 2011 third quarter ending Jan. 30, 2011, the company expects total revenue in the range of $34.0 million to $34.5 million. GAAP net loss per share is expected to be in the range of 3 to 4 cents a share and non-GAAP earnings per share (EPS) are expected to be in the range of $0.06 to $0.07. Fiscal 2011 revenue guidance was increased to $134 to136 million from $132 to135 million and non-GAAP earnings per share (EPS) to $0.25 to 0.26 from $0.24 to $0.25.
Magma Design Automation, Inc. provides design and
implementation software that enables chip designers to reduce the time it takes
to design and produce complex integrated circuits used in the communications,
computing, consumer electronics, networking and semiconductor industries.
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