"In Q1 we exceeded our key financial guidance ranges and continued strong positive cash flow," said Rajeev Madhavan, chairman and CEO of Magma, in a statement.

Also last week, Magma amended its tender offer for some convertible senior notes currently due next year. Among the changes, the company has dropped its self-imposed minimum requirement for the tender offer to go into effect. It can now presumably exchange the notes held by any willing party for new notes due in 2014.

The senior notes were cited as the primary reason why Magma's auditor last month issued a "going concern" qualification for Magma, saying the firm did not have the cash on hand to meet its debt obligations.

Company executives said they wouldn't know how many noteholders would accept the tender offer until the deal was completed. The new expiration date for the tender offer is midnight on Friday (Sept. 4). Magma's total revenue for the fiscal first quarter was down 37 percent compared to the year-ago quarter and down 16 percent compared with the previous quarter.

The GAAP net loss of $4.3 million, or 9 cents per share, compares to a GAAP net loss of $15.3 million, or 35 cents per share, for the year-ago quarter, and a GAAP net loss of $8.8 million, or 19 cents per share, for the previous quarter, Magma (San Jose, Calif.) said.

On a non-GAAP basis, excluding charges, Magma posted a net income of $1.7 million, or 3 cents per share, for the fiscal first quarter, up from a non-GAAP net income of $700,000, or 2 cents per share in the year-ago quarter.

For the current quarter, which closes Nov. 1, Magma said it expects sales of $28.5 million to $29 million and a GAAP loss of 17 to 18 cents per share.