Subject: Reactions to Magma's unexpectedly good Q1 prelim numbers

From: "David Kelf" <davek=user domain=sigmatix not mom>

Hi, John,

Check it out.  Magma gave an early look at their Q1 results and beat their
own guidance:

  - 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.

Taken from their Thursday press release.  I guess they're not dead yet.

    - David Kelf
      Sigmatix, Inc.                             Stoneham, MA

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  Editor's Note: Since I are engineer and not accountant, I asked
  exactly what does "cash flow" mean in layman's terms.  What I
  got back was: "These days most companies are losing money; this
  shows LAVA increased its cash by $4.5 million this Q1."  - John

         ----    ----    ----    ----    ----    ----   ----

From: Richard Thompson <richard.thompson=user domain=hughes not mom>

Hi, John,

Did you notice that LAVA press release last week?

We use Magma tools and it is good to see them doing better than has been
mooted recently.  I feel we should have options other than just Synopsys
or Cadence.  Magma seems to be doing things right technically.  I'm an
analog guy who moved to digital and I'd really like our analog people to
look at Magma's analog offerings.  Having them in better financial health
helps that proselytizing.  :)

    - Richard Thompson
      Hughes Network Systems                     Germantown, MD


From: John Cooley <jcooley=user domain=zeroskew not mom>
To: Richard Thompson <richard.thompson=user domain=hughes not mom>

Hey, Richard,

I very strongly agree that a Synopsys/Cadence duopoly in P&R would be a
nightmare for all users.  They'd just soak us for all that they could get
exactly like Mastercard/VISA.

    - John Cooley
      DeepChip.com                               Holliston, MA


From: Richard Thompson <richard.thompson=user domain=hughes not mom>
To: John Cooley <jcooley=user domain=zeroskew not mom>

Hear!  Hear!

    - Richard Thompson
      Hughes Network Systems                     Germantown, MD