WILSONVILLE, USA: Mentor Graphics Corp. announced financial results for the company’s fiscal first quarter ended April 30, 2011. The company reported revenues of $230 million, non-GAAP earnings per share of $.20, and a GAAP loss per share of $.02. The GAAP loss was driven primarily by non-cash charges associated with retirement of convertible debt.
“Our strategy of leveraging our strength in design automation into adjacent markets is working,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “The company reported record revenues for a first quarter as our New and Emerging product category delivered strong growth. In addition, our Integrated Systems Design product category continued to strengthen with year-on-year bookings up 45 percent. Leading indicators of the business remain strong with services and new customers both up sharply.”
During the quarter, the company refinanced a convertible debt offering, reducing annual cash interest expense, increasing conversion price, and reducing dilution. The company also announced a new four-year $125 million revolving credit facility. During the quarter, the company unveiled its 3D integrated circuit (IC) strategy and released test products designed to support 3D IC. The company extended its Calibre product line with the Calibre RealTime platform which allows IC designers to optimize their designs while immediately verifying the manufacturability of the chip. The Mentor Embedded Sourcery CodeBench won best software product of the show at the recent Embedded Systems Conference.
“We are well on track to achieve our full year goal of a non-GAAP operating margin of 15% of revenues,” said Gregory K. Hinckley, president of Mentor Graphics. “Looking forward, we will extend our cost-cutting efforts with further consolidations of facilities and IT, while we continue to raise the bar on commission and variable compensation expense to further align rewards with increasing shareholder value.”
For the second quarter, the company expects revenues of about $210 million, non-GAAP earnings per share of about $.05, and a GAAP loss per share of approximately $.05. For the full year, the company now expects revenues of about $1,004 million, non-GAAP earnings per share of approximately $1.01 and GAAP earnings per share of about $.67.