Mentor Graphics Corporation announced financial results for the company’s fiscal second quarter ended July 31, 2014. The company reported revenues of $260.2 million, non-GAAP earnings per share of $0.23, and GAAP earnings per share of $0.13.
“System design strength, particularly with automotive customers, drove the second quarter with earnings solidly beating guidance,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “The automotive industry is in transition from mechanical to electronic differentiation and the rate of change is accelerating. Electronic content in vehicles is about 40 percent of the cost of a car. This is yielding considerable opportunities for Mentor. Second quarter automotive strength was broad, with orders for wire harness, embedded software and AUTOSAR tools and products.”
During the quarter the company announced two acquisitions: XS Embedded, which has automotive-grade software and hardware to accelerate the start of production, and positions Mentor well to address integration of advanced driver assistance systems, driver information and infotainment; and Nimbic, Inc., whose leading 3D electromagnetic simulation technology enhances the Mentor® IC packaging design portfolio.
During the quarter Mentor also launched the MicRed® Industrial Power Tester 1500A. This new hardware product tests the reliability of power electronic components used in automobiles, trains, power generators and converters, and renewable energy applications such as wind turbines. In addition, the company announced the Questa® PropGen formal-based automated verification solution; and the Xpedition® Data Management product suite, the newest addition to the Xpedition Enterprise platform for PCB systems design. Other announcements covered several emulation solutions that accelerate the verification of high-performance memory products used in mobile multimedia devices and networking infrastructure; and an embedded software solution for multi-core system-on-chip architectures which combine two or more different types of microprocessors or microcontrollers.
“The second quarter was strong for Mentor and as a result we exceeded non-GAAP earnings guidance,” said Gregory K. Hinckley, president of Mentor Graphics. “A four percent revenue upside to guidance, along with continued attention to expense control, drove an over 50 percent beat in earnings per share. Automotive had an exceptional quarter, with record quarterly bookings three times the level of last year and year-to-date bookings already equal to all of fiscal 2014.”
To view an unabridged version of this press release, visit: http://s3.mentor.com/public_documents/news_article/company/news/Q2FY2015-earnings.pdf
