Magma

EDA Industry Update

Magma has had its missteps but we have turned our products around and they are well regarded by our customers. And in terms of financial condition, in reality our company is in a better state than our competition likes to claim. Recent data:

— Magma generates cash: $5.7 million in operating cash flow last quarter, $5.5 million the quarter before.

— If you look at balance sheets, Magma’s compares well to Cadence’s and is stronger than Mentor’s. Magma’s ratio of cash to debt is 0.9, slightly behind Cadence’s ratio of 1.1 and well ahead of Mentor’s ratio of 0.4.

— If you look at operating cash flow, Magma is stronger than both Cadence and Mentor. For the first half of calendar 2009 Magma’s cash-flow-to-debt ratio was 0.16, better than Mentor’s 0.10 and far ahead of Cadence’s 0.01.

We’ve made our mistakes, as all companies do. We acknowledge them, correct them and move forward. But look at the data to get the full financial picture.

Milan Lazich
Magma Design Automation
408-565-7706
[e-mail]

Semiconductors: Looking Up from the Bottom

Magma CEO Rajeev Madhavan sees a greater number of engineers needed to develop complex products, defeating the rationale of Moore's Law. Speaks of new approach to addressing design complexity by automating the chip design process. Predicts more semi companies turning to this approach over next few months. Read his recent interview with GSA: tinyurl.com/kuu7jt.