This excerpt taken from the LAVA 10-Q filed Aug 11, 2006.
Stock-Based Compensation for the Three Months Ended July 3, 2005
During the three months ended July 3, 2005, the Company accounted for its stock-based employee compensation arrangements in accordance with provisions of APB 25 and related guidance. The Company recognized in its Condensed Consolidated Statements of Operations $1.7 million of stock-based compensation expense primarily for the intrinsic value of restricted stock awarded during the three months ended July 3, 2005.
During the three months ended July 3, 2005, the Company complied with the disclosure-only provisions of SFAS No. 123, Accounting for Stock-Based Compensation, as amended. Had compensation cost for the Companys stock-based compensation plan been determined using the Black-Scholes option pricing model at the grant date for awards granted in accordance with the provisions of SFAS 123, the Companys net loss would have been the amounts indicated below (in thousands, except per share amount):
The weighted-average estimated fair value per share at the date of grant for options granted to employees and for share purchase rights granted under the employee stock purchase plans was as follows:
MAGMA DESIGN AUTOMATION, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)
The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model, with the following weighted-average assumptions: