note 3

Notes To Consolidated Statements

NOTE 3: ACQUISITION

In April 1995, the Company acquired NeoCAD, Inc. (NeoCAD), a private company engaged in the design, development and sale of FPGA software design tools for programmable electronic technologies, for $35 million in cash. The transaction was treated as a purchase for accounting purposes; accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values. NeoCAD's financial results from the date of acquisition are included in the Company's consolidated financial results. The excess of the purchase price over the fair values of liabilities assumed, net of tangible assets acquired, was allocated to in-process technology ($19.4 million), developed technology ($15.7 million) and the assembled workforce ($0.7 million). The amount of in-process technology was written-off as a non-recurring item during fiscal 1996. The developed technology and assembled workforce assets are being amortized over six and two years, respectively. In fiscal 1997, the Company recorded amortization of $2.6 million and $0.4 million relating to the developed technology and assembled workforce assets, respectively, for a total amortization to date of $5.2 million and $.7 million, respectively.

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