LONDON — Mentor Graphics Corp. (Wilsonville, Ore.) made a loss of $17.2 million on revenue of $182.4 million in the second quarter ended July 31.
"We predicted a tough environment this year, and we continue to see it. Despite this, the company performed better than our guidance for the quarter," said Gregory Hinckley, president of Mentor Graphics. "We saw some bright spots in our newer products with Calibre DFM and automotive both performing quite well. Additionally, consulting was up 25 percent over last year. I view increased bookings in consulting as a leading indicator of an improving business climate. Lastly, our cost-saving initiatives are on track to meet or exceed our goals."
For fiscal 2009, the company continues to expect revenue growth of about 4 percent to $915 million. For fiscal third quarter, the company expects revenue of about $220 million and GAAP earnings of $0.03 - $0.08 compared to a GAAP loss of $0.19 in the second fiscal quarter.
"Mentor Graphics continues to execute against its plan in an environment which remains challenging," said Wally Rhines, chairman and CEO of Mentor Graphics. "Our young and innovative product portfolio has enabled Mentor Graphics to continue to perform as customers adopt new process nodes. Customer adoption of leading-edge physical place and route technology at 45nm is accelerating, and is rapidly expanding Mentor's base of Olympus-SoC users."
During the quarter, the company unveiled its sub-45nm integrated circuit (IC) implementation strategy, blending Calibre design for manufacturing, Olympus-SoC place and route, design for test and yield learning solutions. The company's inFact intelligent testbench software was updated to allow it to automatically scale across a server farm of up to 1000 CPUs.
The company made two acquisitions in the quarter. It acquired substantially all of the assets of Ponte Solutions to extend the company's Calibre DFM product line. The company also acquired Flomerics, a provider of thermal simulation and analysis tools.
Related articles:
A different kind of day at Cadence
Mentor takes control of Flomerics
Cadence reports poor results, stock drops to 13-year low
