> "I hope for a settlement which gets both companies back to investing
>  in R&D rather than in legal fees.  It's noticeable that recently
>  Magma's R&D expenditure has been dropping while their 'cost of sales'
>  has been increasing."
>
>      - from http://www.deepchip.com/wiretap/060602.html


From: Milan Lazich <milan=user domain=magma-da spot gone>

Hi, John,

I enjoy your new Wiretaps.  A recent submission on the Magma-Synopsys
litigation said that our R&D spending dropped while our cost of sales has
been increasing.  We're glad to see your readers looking at these items,
but in this case the facts are backward.

First, about the R&D investment: Magma's investment in R&D has actually
consistently INCREASED.  The chart below shows Magma's quarterly revenue
and R&D investment from the third calendar quarter of 2002 through our most
recent reported quarter.  You can see upward trends for both.

     

In fact, if you compare the R&D investment by Magma and Synopsys over that
time you'll see Magma's R&D spending was up 170 percent, while Synopsys' was
up only about 24 percent over the comparable period.

As for Cost of Sales ... yep, it's going up.  That's because our SALES are
going up.  There's a direct correlation between the two, and at Magma we're
pleased they both continue to grow.

This data comes from public financial statements, so you and your readers
can feel free to do the analysis.  Thanks.

    - Milan Lazich
      Magma DA                                   Santa Clara, CA