Magma Design Automation (LAVA) 8-K Magma Reports Revenue of $28.8 million for First Quarter

Exhibit 99.2

MAGMA DESIGN AUTOMATION, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	August 2, 2009			May 3, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	36,812		$	32,888
Restricted cash		7,876			9,215
Short-term investments		18,010			—
Accounts receivable, net		11,320			26,635
Prepaid expenses and other current assets		5,764			5,443
Total current assets		79,782			74,181
Property and equipment, net		8,868			10,443
Intangibles, net		10,772			12,170
Goodwill		6,672			6,666
Long-term investments		—			17,908
Other assets		6,190			5,665
Total assets	$	112,284		$	127,033
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,595		$	1,212
Accrued expenses		9,462			15,353
Secured credit line		12,403			12,451
Revolving note		11,246			12,181
Current portion of other long-term liabilities		2,468			2,679
Deferred revenue		28,648			35,779
Convertible notes, net of debt discount		48,141			—
Total current liabilities		113,963			79,655
Convertible notes, net of debt discount		—			47,600
Long-term tax liabilities		9,750			9,729
Other long-term liabilities		2,419			3,160
Total liabilities		126,132			140,144
Stockholders’ equity:
Common stock		5			5
Additional paid-in capital		408,724			405,341
Accumulated deficit		(384,802	)		380,489
Treasury stock at cost		(32,615	)		(32,615	)
Accumulated other comprehensive loss		(5,160	)		(5,353	)
Total stockholders’ equity (deficit)		(13,848	)		(13,111	)
Total liabilities and stockholders’ equity	$	112,284		$	127,033

MAGMA DESIGN AUTOMATION, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	For the Three Months Ended
	August 2, 2009			August 3, 2008
Revenue:
Licenses	$	13,779		$	26,096
Bundled licenses and services		7,577			9,930
Services		7,485			9,716
Total revenue		28,841			45,742
Cost of revenue:
Licenses		701			4,809
Bundled licenses and services		976			2,519
Services		3,160			5,002
Total cost of revenue		4,837			12,330
Gross profit		24,004			33,412
Operating expenses:
Research and development		11,197			20,133
Sales and marketing		9,770			16,803
General and administrative		4,383			6,952
Amortization of intangible assets		305			1,444
Restructuring charge		703			2,020
Total operating expenses		26,358			47,352
Operating loss		(2,354	)		(13,940	)
Other income (expense):
Interest income		45			186
Interest expense		(1,157	)		(984	)
Other income (expense), net		(450	)		(96	)
Total other income, (expense) net		(1,562	)		(894	)
Net loss before income taxes		(3,916	)		(14,834	)
Provision for (benefit from) income taxes		396			440
Net loss	$	(4,312	)	$	(15,274	)
Net loss per share – basic and diluted	$	(0.09	)	$	(0.35	)
Shares used in calculation: Basic and diluted		47,863			43,385