Mentor Graphics reports prelim fiscal Q1 results

WILSONVILLE, USA: Mentor Graphics Corp. reported preliminary results for its fiscal first quarter ended April 30, 2011. The company announced that it expects fiscal first quarter results to exceed prior revenues guidance with revenues of about $230 million, up over 25 percent from the prior fiscal first quarter ended April 30, 2010.

Non-GAAP earnings are expected to be in the range of $.18 to $.20 per share. The company expects a GAAP loss in the range of $.02 to $.06 per share driven primarily by non-cash charges associated with the retirement of the company’s previous convertible debt. For the prior fiscal year first quarter the company reported revenues of $180.6 million, a non-GAAP loss per share of $.02 and a GAAP loss per share of $.22. Bookings in the quarter grew about 7 percent over the prior fiscal first quarter.

“Our strategy is working. The momentum in our business from our last fiscal year continued into the first quarter with strong growth in revenues and bookings. We also achieved a non-GAAP operating margin of about 14 percent, and a GAAP operating margin of approximately 8 percent for the fiscal first quarter,” said Walden C. Rhines chairman and CEO of Mentor Graphics. “The strength of our first quarter gives us further confidence in our outlook for this fiscal year.”

For a reconciliation of GAAP to non-GAAP guidance, see “Discussion of Non-GAAP Financial Measures” below. These results are preliminary and subject to adjustment during the accounting close process. In particular, the preliminary GAAP income tax provision embedded in these results includes a number of assumptions subject to change in the normal course of the close process.

The company will report full fiscal first quarter results on May 27, 2011, before market open.