Mentor Graphics Provides Outlook
Business Editors, Hi-Tech Writers
WILSONVILLE, Ore.--(BUSINESS WIRE)--July 26, 2001--Mentor Graphics
Corporation (Nasdaq: MENT) today reported second quarter 2001 earnings
and provided the outlook for the third quarter and full year 2001, and
provided an initial outlook for 2002.
An archive copy of the webcast of the conference call is available
on the Mentor website at: www.mentor.com/investor_relations. The
webcast will be available until July 30, 2001.
Outlook for Third Quarter 2001
Mentor expects revenues in the range of $135 million. Gross margin
is expected to be approximately 78 percent. Operating expenses are
expected to be flat sequentially. Other income and expense is expected
to be roughly a half million dollar expense. Amortization of goodwill
included in operating expenses is expected to be about $2 million for
the quarter. The tax rate should remain at 20 percent.
Outlook for Calendar 2001
Revenues are expected in the range of $620 million. Gross margin
should remain approximately 80 percent for the year. Operating
expenses are estimated to increase $10 to $12 million sequentially in
the fourth quarter, due to a seasonal increase in commissions and
other incentives typically incurred in that quarter. Other income and
expense is expected to be an expense of about a half million dollar
expense for the full year. Amortization of goodwill included in
operating expenses is expected to total $8 million for the year. The
tax rate should remain steady at 20 percent through the year.
Outlook for Calendar 2002
Revenues are expected in the $700 million range. Gross margin
should run approximately 80 percent for the year. Operating expenses
are estimated to increase about 7% over 2001 levels. Other income and
expense is expected to be an expense of about $8 million dollar
expense for the full year, as litigation against Cadence Design
systems goes to trial. Amortization of goodwill included in operating
expenses is expected to total $8 million for the year. The tax rate
should remain steady at 20 percent through the year.
About Mentor Graphics
Mentor Graphics Corporation (Nasdaq: MENT) is a world leader in
electronic hardware and software design solutions, providing products,
consulting services and award-winning support for the world's most
successful electronics and semiconductor companies. Established in
1981, the company reported revenues over the last 12 months of more
than $600 million and employs approximately 2,975 people worldwide.
Corporate headquarters are located at 8005 S.W. Boeckman Road,
Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are
located at 1001 Ridder Park Drive, San Jose, California 95131-2314.
World Wide Web site: www.mentor.com. |
