Magma shrinks 1Q loss

SAN JOSE, Calif.

Magma Design Automation Inc., which makes chip design software, said on Thursday that its fiscal first quarter net loss shrank to $3.3 million, and its adjusted profit beat Wall Street expectations.

The company's loss for the quarter that ended Aug. 1 worked out to 6 cents per share. During the quarter that ended Aug. 2, 2009, it lost $4.3 million, or 9 cents per share.

Revenue rose 12.9 percent to $32.6 million, from $28.8 million a year earlier.

Excluding certain items, the company said it would have earned 5 cents per share in the most recent quarter. Analysts surveyed by Thomson Reuters were expecting a profit of 3 cents per share on revenue of $31.1 million.

Magma said it expects to lose 6 cents to 7 cents per share in the second quarter, on revenue of $33 million to $33.5 million. It expects an adjusted profit of 5 cents to 6 cents per share. Analysts were expecting a profit of 4 cents per share on revenue of $32.2 million.

It changed its outlook for the year ending May 1, 2011, raising its revenue guidance to $132 million to $135 million, up from $130 million to $133 million it had expected previously. Analysts were expecting $133.2 million.

It said it now expects to lose 17 cents to 18 cents for the year, worse than its previous expectation for a loss of 14 cents to 16 cents. However, it expects an adjusted profit of 24 cents to 25 cents per share, up from previous guidance of 18 cents to 20 cents per share. Analysts are expecting a full-year profit of 20 cents per share.

Magma shares had fallen 9 cents, or 2.9 percent, to close at $3.03 before the results were released. They rose 16 cents, or 5.3 percent, in aftermarket trading.