Magma Design posts wider 1Q loss, lower sales

Chip design software company Magma Design Automation Inc. said Thursday its fiscal first-quarter loss widened in a "difficult business environment" that may continue for at least part of its fiscal year.

The company also said it has lowered its full-year outlook, and shares fell in after-hours trading.

For the three months ended Aug. 3, the company posted a loss of $14.9 million, or 34 cents per share, compared with a loss of $11.3 million, or 29 cents per share, in the three months ended July 1, 2007.

Adjusted earnings were 2 cents per share for the latest quarter.

Revenue fell 9 percent to $45.7 million from $50.2 million.

"The first quarter proved to be a more difficult business environment than we anticipated, a situation that we believe may continue throughout at least a portion of the remainder of our fiscal year," said Rajeev Madhavan, chief executive, in a statement.

Shares plunged 93 cents, or 17 percent, to $4.62 in after-hours electronic trading. The stock had closed up 5 cents at $5.55.