They sure did! Blowout earnings! Consensus was 9c. They beat it handsomely! The guy on Barron's was right! Stock is a winner! Up in afterhours too! Up nearly $ 2 for the day!
Monday May 1, 4:15 pm Eastern Time
Company Press Release
SOURCE: Mentor Graphics Corporation
Mentor Graphics Announces EPS More Than Doubles to $.16 on Revenues of $128M; Orders Up 15% With Record Backlog
WILSONVILLE, Ore., May 1 /PRNewswire/ -- Mentor Graphics Corporation (Nasdaq: MENT - news) today announced first quarter 2000 revenues of $128.1 million, and earnings-per-diluted-share of $.16, exceeding First Call© analyst consensus estimates of $.09. Backlog reached record levels for a first quarter. Gross margin performance at 79.1% added approximately $.05 to earnings-per-share above First Call consensus estimates. An earlier reported gain on a land sale was significantly offset by other non-operating costs. Bookings were strong, up over 15% over the year ago quarter.
``We continue to see strength across our business as customers move to the next generation design tools we offer,'' said Walden C. Rhines, president and CEO of Mentor Graphics©. ``We are executing our strategy. We are building on our leadership in key markets to offer our customers more complete integrated solutions in board system design, deep-submicron physical verification and analysis, HDL and FPGA design, and system-on-chip design and verification.''
In the quarter, Mentor also signed a major, three-year deal for FPGA design tools with Altera Corporation. With this agreement, Mentor has agreements to provide FPGA design tools to all of the world's major FPGA vendors.
The company launched many new products and enhancements during the quarter including: Celaro(TM) emulator partitioning, 64-bit and system-on-chip Design-for-Test tools, Modelsim© Linux server farm features, MachPA(TM) for power analysis, linked FPGA and printed circuit board design tools, Web-based IP cores for FPGA design, Exemplar(TM) FPGA Synthesis enhancements, IC Station© design visualization tools, and system-on-chip design kits. Additionally, the current quarter saw the launch of several more tools and enhancements, the advanced placement tool TeraPlace(TM), a next-generation high-performance formal verification product, FormalPro(TM) and further enhancements to the market-leading Calibre© physical verification product line.
``Our execution continues to yield good results for us,'' said Gregory K. Hinckley, COO and CFO of Mentor Graphics. ``Backlog is the highest ever for a first quarter, and the backlog quality is excellent. Our focus on business execution helped us boost margins, which resulted in our strong earnings. Particular improvements were seen in our emulation and consulting lines of business. We see improved prospects this year. Additionally, we repurchased 2.5 million shares during the quarter.''
Mentor Graphics Corporation is a world leader in electronic hardware and software design solutions, providing products and consulting services for the world's largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of over $500 million and employs approximately 2,700 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: mentor.com.
Certain statements contained in the press release constitute ``forward-looking'' statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: (i) the Company's ability to successfully offer products and services that compete in the highly competitive and dynamic EDA industry including the risk that the company's technology, products or inventory become obsolete; (ii) effects of the increasing volatility of foreign currency fluctuations on the Company's business and operating results; (iii) the overall instability of Asian or other economies, including changes in regional or worldwide economic or political conditions, government trade restrictions, limitations on repatriation of earnings, licensing and intellectual property rights protection; (iv) the timing of completion of customer contracts and the terms of delivery of software, hardware and other services and (v) the Company's ability to recruit and retain necessary personnel to research and develop, market, sell and service products and (vi) possible adverse impact from the Company's litigation with Cadence Design Systems or other third parties. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. Mentor Graphics disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements to reflect future events or developments.
MENTOR GRAPHICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended March 31, 2000 1999
Revenues:
System and software $72,639 $72,740
Service and support 55,495 49,833
Total revenues 128,134 122,573
Cost of revenues:
System and software 5,329 7,446
Service and support 21,444 22,382
Total cost of revenues 26,773 29,828
Gross margin 101,361 92,745
Operating expenses:
Research and development 30,009 28,869
Marketing and selling 44,773 42,315
General and administration 12,930 12,896
Special charges -- 16,575
Total operating expenses 87,712 100,655
Operating income (loss) 13,649 (7,910)
Other loss, net (268) (2,821)
Income (loss) before
income taxes 13,381 (10,731)
Income tax expense (benefit) 2,944 (2,361)
Net income (loss) $10,437 $(8,370)
Net income (loss) per share:
Basic $.16 $(.13)
Diluted $.16 $(.13)
Weighted average number
of shares outstanding:
Basic 64,124 66,213
Diluted 66,781 66,213
MENTOR GRAPHICS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
As of As of
March 31, 2000 Dec 31, 1999
(Unaudited)
Assets
Current assets:
Cash and short-term investments $100,139 $133,187
Trade accounts receivable, net 65,374 71,042
Term receivables, short-term 61,319 54,375
Other receivables 5,799 6,440
Prepaid expenses and other 20,570 14,921
Deferred income taxes 10,889 10,954
Total current assets 264,090 290,919
Property, plant and equipment, net 79,573 83,970
Term receivables, long-term 29,616 31,695
Other assets, net 40,577 42,755
Total assets $413,856 $449,339
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 7,071 9,979
Income taxes payable 23,354 22,599
Accrued payroll and
related liabilities 27,602 41,628
Accrued liabilities 32,392 37,085
Deferred revenue 57,272 46,425
Total current liabilities 147,691 157,716
Other long-term deferrals 1,165 1,221
Total liabilities 148,856 158,937
Minority interest 1,696 1,622
Stockholders' equity:
Common stock 256,659 289,478
Accumulated deficit (9,925) (20,362)
Accumulated other
comprehensive income 16,570 19,664
Total stockholders' equity 263,304 288,780
Total liabilities and
stockholders' equity $413,856 $449,339
CONTACT: Ryerson Schwark, Public and Investor Relations, 503-685-1660, or ry_schwark@mentor.com, or Dennis Weldon, Treasurer, 503-685-1462, or dennis_weldon@mentor.com, both of Mentor Graphics Corporation.
SOURCE: Mentor Graphics Corporation |
