MENT ( $17 )P/E 19 Earns $.27 per Share on Revenues of $149.5M
WILSONVILLE, Ore.--(BUSINESS WIRE)--July 26, 2001--Mentor Graphics Corporation (Nasdaq:MENT - news) today announced second quarter earnings per share of $.27 on revenues of $149.5M.
Earnings grew over 50% compared to the year ago quarter. For comparison, earnings are shown before goodwill and unusual items.
``Despite the challenging market, our products continued to gain market share. Calibre® Interactive(TM), our newest physical verification tool which was announced in June, won significantly against Cadence's Assura product line. We intend to aggressively move into the cell-based physical verification space and offer customers upgrades to a fully integrated block- and cell-based physical verification environment. During the quarter, Applied Micro Circuits announced its standardization on Calibre for both block- and cell-based physical verification, replacing Cadence tools (See June 4, 2001 announcement). We see a better than $50M dollar opportunity in replacing Cadence in cell-based physical verification. Calibre OPC also won two large orders from leading foundries,'' said Walden C. Rhines, chairman of the board and CEO of Mentor Graphics. ``Furthermore, our new HDL authoring tool for ASICs and FPGAs, HDL Designer Series, grew 50% over the year ago quarter, as customers are finding their existing tools just break at a million gates and they need a more robust solution.''
During the quarter, Gartner Dataquest again reported Mentor Graphics was No. 1 in printed circuit board design software in its annual market share report. Autoactive® RE, Mentor's next-generation tool for routing printed circuit boards, doubled sequentially as more customers moved to replace out-dated routers.
Mentor's customer base continued to grow, registering about 130 new customers in the quarter. Market share and customer growth continued to pull through higher support revenue, which grew more than 20% over the year ago quarter.
``We saw significant business activity at the Design Automation Conference with leads up 25%, while overall attendance was down 20%. We have a portfolio of tools that customers want,'' said Gregory K. Hinckley, president of Mentor Graphics. ``While our overall prospects are as good as they've ever been, we continue to see a lengthened deal cycle. Business is being deferred, however, not lost. Our large deal renewal cycle begins in the fourth quarter, improving our confidence and visibility for the latter half of the year and 2002. We expect to see a positive book-to-bill in the second half of the year.''
During the quarter, Mentor launched remote access services to its Meta emulation products which generated significant customer interest. Meta's emulation offering allows customers in need of advanced verification solutions to access Mentor emulation technology without capital expenditures. Mentor Meta emulation has been in high demand with some US customers moving design activity to Europe to access the technology.
About Mentor Graphics Corporation
Mentor Graphics Corporation (Nasdaq:MENT - news) 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. |
