SAN JOSE, Calif., Oct. 19, 2009 (GLOBE NEWSWIRE) -- Magma(R) Design Automation Inc. (Nasdaq:LAVA), a provider of chip design software, announced today it has renewed a credit line with Wells Fargo Bank. The new line replaces an existing $15 million credit facility, eliminates borrowing restrictions imposed by the prior facility and extends the term of the agreement.
"This new line of credit's favorable terms give us improved flexibility, and I believe indicate improved confidence in Magma's financial profile," said Magma Chief Financial Officer Peter S. Teshima. "Wells Fargo has been an excellent financial partner since 2003 and we are very pleased to continue this relationship."
Magma entered into an amendment to an existing credit agreement between Magma and Wells Fargo Bank on Oct. 9, 2009, resulting in a single revolving line of credit of $15 million that replaced two previous $7.5 million revolving lines of credit. It also eliminated borrowing restrictions based on Magma's level of accounts receivable and extended the term of the line of credit to Sept. 30, 2010. The line of credit was initiated in 2007.
About Magma
Magma's electronic design automation (EDA) software is used to create complex, high-performance integrated circuits (ICs) for cellular telephones, electronic games, WiFi, MP3 players, DVD/digital video, networking, automotive electronics and other electronic applications. Magma products for IC implementation, analog/mixed-signal design, analysis, physical verification, circuit simulation and characterization are recognized as embodying the best in semiconductor technology, providing the world's top chip companies the "Fastest Path to Silicon"(TM). Magma maintains headquarters in San Jose, Calif., and offices throughout North America, Europe, Japan, Asia and India. Magma's stock trades on Nasdaq under the ticker symbol LAVA. Follow Magma on Twitter at www.twitter.com/MagmaEDA and on Facebook at www.Facebook.com/Magma. Visit Magma Design Automation on the Web at www.magma-da.com.
Magma is a registered trademark and "Fastest Path to Silicon" is a trademark of Magma Design Automation Inc. All other product and company names are trademarks or registered trademarks of their respective companies.
Forward-looking statements:
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including but not limited to Magma's ability to keep pace with rapidly changing technology and the company's products' abilities to produce desired results. Further discussion of these and other potential risk factors may be found in Magma's public filings with the Securities and Exchange Commission (www.sec.gov). Magma undertakes no additional obligation to update these forward-looking statements.