Someone's numbers do not make sense
Just a day after the news of the proposed acquisition by Synopsys, Magma reported results for its second quarter of the fiscal year (May to April). The data shows a company that is rebounding well from its 2009 fiscal year low. The significant dip in Magma's performance for fiscal 2008 and 2009 has been attributed by almost all analysts to the marketing and sales problems the company experienced while embroiled in the legal battle with Synopsys over intellectual property rights.
Results for the first half of 2011 show a very good increase in revenue with an healthy reduction in cost of revenue, yielding greater profits. Operating expenses f or the first six months were a higher by approximately $2 million due mostly to increase spending in R&D and a $0.5 million restructuring charge. All of the traditionally measured financial results were better than guidance and the corporate balance sheet shows an increase of about $7 million in stockholders equity or over 33%.
Click here to read more ...