Editing Magma Design Automation (section)

==History==
Magma was founded in 1997 by a team including Rajeev Madhavan, who was chairman, CEO and president from the company's inception.<ref>Securities and Exchange Commission Form S-1, Amendment No. 7, November 19, 2001, (page 49) [http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1594409]</ref> The company initially competed primarily with [[Cadence Design Systems|Cadence]] and [[Synopsys#Avanti Corporation|Avanti Corporation]] in physical design but eventually broadened its product portfolio and competed with all three of the largest established EDA companies: [[Cadence Design Systems|Cadence]], [[Mentor Graphics]] and [[Synopsys]].<ref>[http://www.aycinena.com/index2/template.html?index3/archive/fathers%20and%20sons%20-%20rhines%20&%20madhavan EDA Confidential, July 14, 2005]</ref> Magma had a particularly strong presence in the convergence device segment through key customers such as Qualcomm, Broadcom and Texas Instruments.<ref>[http://www.sramanamitra.com/2009/03/24/eda-industry/ “EDA Industry Update,” March 24, 2009]</ref> In 2001 Roy Jewell joined Magma as chief operating officer and later that year added the title of president.<ref>Securities and Exchange Commission Form S-1, Amendment No. 7, November 19, 2001, (page 49) [http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1594409]</ref>

Magma completed an initial public offering on Nasdaq, under the ticker symbol LAVA, on November 20, 2001<ref>[https://money.cnn.com/2001/11/20/ipo/magma/ “Magma IPO up 46%”, CNN Money, November 20, 2001]</ref> — the last EDA company to go public<ref>[http://seekingalpha.com/article/270075-the-first-eda-ipo-in-a-decade-apache-design-solutions "The First EDA IPO in a Decade," Seeking Alpha, May 16, 2011]</ref> — and achieved its peak annual revenue of $214.4 million in its 2008 fiscal year.<ref>“Magma Reports Revenue of $214.4 million for Fiscal 2008, 20.4 Percent above Prior Year,” May 1, 2008 at SEC archive [https://www.sec.gov/Archives/edgar/data/1065034/000119312508099128/dex991.htm]</ref> Magma was the fourth largest EDA company by revenue.<ref>Based on Annual Reports on Form 10-K filed with U.S. Securities and Exchange Commission</ref>

In 2002 Magma was named to the Red Herring 100 for innovation and business strategy.<ref>“Magma Named to the Red Herring 100; Recognized by Red Herring Editors for Innovation and Business Strategy,” May 13, 2002 [http://www.thefreelibrary.com/Magma+Named+to+the+Red+Herring+100%3B+Recognized+by+Red+Herring+Editors...-a085888783]</ref> In 2005 Forbes ranked Magma No. 2 on its list of fastest-growing technology companies.<ref>[https://web.archive.org/web/20050209112851/http://www.forbes.com/free_forbes/2005/0214/100.html “Technology’s Growth Champs,” Forbes, February 14, 2005]</ref>

===Patent Dispute===
Magma was involved in a legal dispute with Synopsys beginning in September 2004, when Synopsys sued Magma for allegedly infringing two patents.<ref>”Synopsys sues Magma for patent infringement,” EE Times, September 17, 2004 [http://www.eetimes.com/document.asp?doc_id=1268353]</ref> Claims and counter-claims accelerated, resulting in separate court cases in California and Delaware, and a number of disputed patents. On March 29, 2007, Magma and Synopsys announced the companies had agreed to settle all pending litigation between them. As part of the settlement Magma made a $12.5 million payment to Synopsys and each company cross-licensed four previously disputed patents to the other.<ref>[http://www.eetimes.com/document.asp?doc_id=1165714 ”Patent resolution removes cloud over Magma,” EE Times, March 30, 2007]</ref>