CIMdata PLM Industry Summary Online Archive

23 August 2012

Financial News

Mentor Graphics Reports Fiscal Second Quarter Results

Mentor Graphics Corporation today announced financial results for the company’s fiscal second quarter ended July 31, 2012. The company reported revenue of $240.8 million, non-GAAP earnings per share of $.21, and GAAP earnings per share of $.16. During the quarter, the company continued its share buy-back, repurchasing 1.4 million shares for $20 million. Since the first fiscal quarter of 2012, the company has repurchased 8.2 million shares for $110 million.

“Revenues and earnings were an all-time record for a second quarter, and bookings were at the second highest level for any second quarter in company history,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “Like the whole electronic design automation industry, Mentor is benefiting from the transition to 20nm and 28nm which is driving significant design activity and resultant software demand. Additionally, the company’s investments in system design, and non-traditional electronic design automation markets like embedded software, helped produce the strong results in the quarter. We are on track for record revenue and earnings for fiscal year 2013.”

During the quarter, the company announced collaborations with TSMC, GLOBALFOUNDRIES and Samsung in advanced process nodes. Mentor also introduced a GENIVI 2.0-compliant, Linux-based, in-vehicle infotainment solution. The company’s Capital tool suite for transportation electrical systems design was accredited to IBM’s “Ready for IBM Rational” program. Mentor also introduced a unique, general-purpose software solution that combines one dimensional and three-dimensional computational fluid dynamics—the first result from the merged technologies made possible by the recent acquisition of Flowmaster Ltd.

“We are pleased with our performance this quarter, beating our guidance by four cents. With continued focus on cost controls, 55% of incremental year-over-year revenues dropped through to operating income,” said Gregory K. Hinckley, president of Mentor Graphics. “A weak euro, a weak rupee, and a strong yen worked to our advantage. We reaffirm revenue guidance of $1.1 billion and are raising our earnings estimate.”

To view an unabridged version of this press release, visit: http://www.mentor.com/company/news/upload/Q2FY2013-earnings_pdf

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