The company’s total revenues exceeded the revenue guidance range of $28 million to $29 million the company issued on December 4, 2008. Third-quarter revenue decreased 45% from the $55.7 million reported for the year-ago third quarter, ended Jan. 6, 2008.

Magma beat revenue targets in the third quarter, an accomplishment we’re quite pleased with given the difficult macroeconomic environment, stated Rajeev Madhavan, Magma’s chairman and chief executive officer. Customers face difficulty in this economy but continue to recognize the technology advantage Magma products offer for their business-critical designs.

GAAP Results:

In accordance with generally accepted accounting principles (GAAP), the company’s anticipated net loss for the third quarter was below the guidance range issued by the company on December 4, 2008 of a loss between $0.67 and $0.65 a share and compares to a net loss of $5.9 million, or $0.14 per share (basic and diluted), for the year-ago third quarter. Third quarter losses exceeded guidance because of an estimated $60.8 million goodwill impairment charge. As a result of the decline in stock price in light of the current adverse macroeconomic business environment on Magma’s long-term financial outlook, Magma’s market capitalization fell significantly below the recorded value of its consolidated net assets, resulting in the impairment charge.

Non-GAAP Results:

Magma’s non-GAAP net income was a net loss of $4.3 million for the quarter, or $0.09 per share (diluted). This result was better than the guidance range issued by the company on Dec. 4, 2008 of a loss between $0.17 and $0.15 a share and compares to non-GAAP net income of $7.5 million, or $0.16 per share (diluted), for the year-ago third quarter.

Non-GAAP net loss for the third quarter of fiscal 2009 excludes the effects of amortization of developed technology, amortization of intangible assets, amortization of deferred stock-based compensation, amortization of debt issuance costs and debt discount accretion, charges associated with losses on equity and other investments, restructuring charges, asset impairment charges, and acquisition-related expenses and the related provision for income taxes. A reconciliation of non-GAAP results to GAAP results is included in this press release. Non-GAAP net income for the third quarter of fiscal 2008 excluded the above items, except charges for restructuring and asset impairment, and also excluded in-process research and development, litigation settlement and related legal expenses and interest expense.

Business Outlook:

For the company’s fiscal 2009 fourth quarter, ending May 3, 2009, the company anticipates total revenue in the range of $33.0 million to $34.0 million. GAAP net loss per share is anticipated to be in the range of $0.39 to $0.37 and non-GAAP net income per share is anticipated to be in the range of $0.01 to $0.03.

For the company’s fiscal year 2009, ending May 3, 2009, the company expects total revenue in the range of $146.0 million to $147.0 million, an increase from the previous guidance range of $144.0 million to $146.0 million. The company expects GAAP net loss per share for fiscal 2009 to be in the range of $2.99 to $2.95, compared to the previous expectation of a loss in the range of $2.03 to $1.99. The company expects non-GAAP net loss per share for fiscal 2009 to be in the range of $0.21 to $0.19, compared to the previous expectation of a loss in the range of $0.29 to $0.25. All guidance issued by the company before February 26, 2009 is no longer in effect.