Mentor Graphics Reports Fiscal First Quarter Results

– Mentor Graphics Corporation (NASDAQ: MENT) today announced results for the fiscal first quarter 2010, ending April 30, 2009. For the quarter, the company reported revenues of $193.8 million, non-GAAP earnings per share of $.09, and a GAAP loss per share of $.14. Bookings for the quarter rose 25% over the prior fiscal first quarter.

“We believe the semiconductor market has stabilized, and that customers who wish to remain competitive will sustain most of their design effort,” said Walden C. Rhines, CEO and chairman of Mentor Graphics. “Mentor’s investments in markets adjacent to traditional EDA helped drive the quarter’s results with 10% of total bookings from transportation companies and 5% from the thermal analysis market. The quarter’s strength was across Mentor’s broad customer base within EDA, spanning both semiconductor and systems companies. Systems companies contributed to a 55% increase in bookings for our Integrated Systems Design division, while semiconductor companies drove a 35% increase in IC Design to Silicon division bookings.”

During the quarter, the company extended its transportation product portfolio with new offerings for AUTOSAR in-vehicle network design and for specialty vehicle electrical wire harness design. Addressing low-power design issues in integrated circuits, the Olympus-SoC™ place and route tool can now help designers save 30% in power versus traditional design techniques and achieve design closure two to three times faster. The Calibre® 3D variability solution allows designers to address the growing problem of thickness variability caused by chemical mechanical polishing (CMP) at advanced nodes. The new FloEFD™ 9.0 product allows mechanical designers to easily analyze thermal effects of products directly from their mechanical design environment. The HyperLynx® power integrity product allows designers of printed circuit boards to better plan their power requirements. In addition, the design-for-test tool TestKompress® won Test and Measurement World’s Test of Time Award, and the RF Design solution, jointly developed with Agilent, won EDN magazine’s Innovation Award for the electronic design automation category.

“Our guidance for the second quarter is the result of a lower renewal portfolio for the quarter, and an expectation that in this environment, customers will not renew early,” said Gregory K. Hinckley, president of Mentor Graphics. “We continue to manage costs aggressively, with a year-on-year decline in the first quarter in non-GAAP total expenses of about $7 million, and expect further reductions in the second quarter.”

Outlook

For the second quarter fiscal 2010, the company has no significant contract renewals scheduled. Given that, the company expects second quarter revenues of about $165 million, a non-GAAP loss per share of about $.10, and a GAAP loss per share of about $.41. The dollar value of contracts expiring in fiscal 2010 is a record; however most of the contracts expire late in the year.

Financial Tables

To download financial tables, click here (pdf)

About Mentor Graphics

Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world’s most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $800 million and employs approximately 4,425 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070- 7777. World Wide Web site: http://www.mentor.com/.