Shares of Magma Design Automation Inc. (LAVA) dropped over 13% in the extended-hours trading on Thursday, after the company said it expects wider loss in its first quarter, citing account delays in customer purchasing decisions as well as channel transition. In addition, the company lowered its revenue as well non-GAAP results for the first quarter.
Magma, which provides electronic design automation software products, expects to report a first-quarter GAAP loss in the range between $0.43 and $0.38 per share, wider than its previously announced target range of loss $0.38-$0.36 per share.
The San Jose, California-based company's non-GAAP results are now projected to range from loss $0.04 to $0.01 per share, compared to its previous target range of profit $0.07 to $0.09 per share.
On average, four analysts polled by First Call/Thomson Financial expect the company to report earnings of $0.08 per share for the first quarter.
The company noted that the non-GAAP earnings/loss exclude the effects of amortization of intangible assets, deferred stock-based compensation, interest expense, debt discount accretion, and restructuring charges in the first quarter.
Total revenue for the quarter ended August 3 is currently projected to range between $44.5 million and $45.5 million, down from its earlied projected range between $50.0 million and $51.5 million. Two Wall Street analysts project company's revenues to be $50.50 million for the quarter.
Magma stated that the results are preliminary and subject to management completing its customary quarterly close. The company is scheduled to release its first-quarter final results and revised fiscal guidance on August 28.
LAVA closed Thursday's regular trading on Nasdaq at $6.77, down $0.10, or 1.46%, with a volume of 194,411 shares. In the After-Hours trading, stock dropped further by $0.91 or 13.44% to close at $5.86.
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