Magma Beats Revenue and Earnings Guidance for Second Quarter, Reports Revenue of $36.5 Million

-------- -------- -------- --------
Gross profit 24,106 41,519 57,518 79,090
-------- -------- -------- --------

Operating expenses:
Research and
development
19,047 18,355 39,180 37,025
In-process
research and
development -- 656 -- 656
Sales and
marketing 15,474 18,645 32,277 35,547
General and
administrative 6,743 7,533 13,695 15,867
Amortization of
intangible
assets 838 2,039 2,282 4,066
Restructuring
charge 3,307 -- 5,327 291
-------- -------- -------- --------
Total operating
expenses 45,409 47,228 92,761 93,452
-------- -------- -------- --------
(21,303) (5,709) (35,243) (14,362)
-------- -------- -------- --------

Other income (expense):

Interest income 193 489 379 948
Interest expense (692) (599) (1,313) (1,256)
Other income
(expense), net (974) 796 (1,070) 69
-------- -------- -------- --------
Total other
income,
(expense) net (1,473) 686 (2,004) (239)
-------- -------- -------- --------
Net loss before
income taxes (22,776) (5,023) (37,247) (14,601)
Provision for
income taxes 3,130 1,372 3,569 3,063
-------- -------- -------- --------
Net loss $(25,906) $ (6,395) $(40,816) $(17,664)
======== ======== ======== ========
Net loss per
share - basic
and diluted $
(0.59) $ (0.16) $ (0.94) $ (0.45)
======== ======== ======== ========
Shares used in
calculation:
Basic and diluted 43,908 39,919 43,647 39,383
======== ======== ======== ========


Reconciliation of Second Quarter GAAP and
Non-GAAP Financial Results

Statement of Operations Reconciliation
(in thousands)

Three Months Ended Six Months Ended
Nov. 2, Sept. 30, Nov. 2, Sept. 30,
2008 2007 2008 2007

GAAP net loss $(25,906) $ (6,395) $(40,816) $(17,664)
Cost of license revenue
Amortization of
developed technology 4,804 4,089 9,457 9,301
Acquisition-related
and other expenses --

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