Magma Design Automation Inc., is announcing that preliminary results indicate the company exceeded all previously announced guidance for its fiscal 2010 first quarter, ended August 2, 2009.

Preliminary results include:

• REVENUE: Revenue is expected to be in the range of $28.6 million to $28.8 million, above the company’s guidance range of $27.5 million to $28.5 million.
• EPS: Net loss per share in accordance with generally accepted accounting principles (GAAP) is expected to be in the range of $(0.17) per share to $(0.16) per share, better than the company’s guidance range of a loss between $(0.20) per share and $(0.19) per share.
• CASH FLOW: Cash flow generated from operations is expected to exceed $4.5 million.

The foregoing results are, as clearly stated, preliminary and may be subject to adjustments following final closing of financial books for the quarter and completion of the company’s independent auditor’s review.

I think that it is unfortunate that in this climate of rumors in the EDA industry, when technology based competition is superseded by marketing messaging, a company must pre-announce results in order to safeguard its credibility. Magma will present at the Canaccord Adams Global Growth Conference on August 13, 2009 and release first quarter results after the close of Nasdaq trading on August 27, 2009.