The Week In Review: Aug. 28
By Ed Sperling
A variety of stock indices are on the rise, China is rebounding strongly and the economy seems to be doing much better. That is reflected in some of the economic news filtering out of companies this week and last, and it bodes well for Q4.
Magma Design Automation rolled out its quarterly financial results, posting $28.8 million in revenue and non-GAAP earnings of $1.7 million. Using GAAP methods, which always show up lower in this business, the company’s net loss was $4.3 million. That’s not pretty, but it’s a lot better than the $15.3 million loss for the same period last year. Magma says cash flow remains strong, which may nix the recent auditor’s report that questioned the company’s sustainability.
TSMC has extended its joint development relationship with Fujitsu from 40nm down to 28nm. The first samples from that process technology are expected to show up next year.
The overall chip industry was down 17% so far this year compared with last year, according to Gartner. Revenue will likely total $212 billion, vs. $255 billion last year. The good news is that Gartner’s previous projection was a decline of 22% for 2009 vs. 2008. Gartner projects a 10% increase in 2010 over 2009, which is still $22 billion less than in 2008. Well, at least that’s a step in the right direction.
