Subject:
Mentor Graphics Reports 15 Percent Revenue Growth for the 1997 Third
Quarter
Date:
Fri, 31 Oct 1997 05:23:20 -0800 (PST)
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News Alert from PR Newswire via Quote.com
Topic: Mentor Graphics Corp
Quote.com News Item #4404715
Headline: Mentor Graphics Reports 15 Percent Revenue Growth for the 1997 Third
Quarter
======================================================================
Call Mentor Graphics Fax-On-Demand Hotline at 800-546-4628 for the Latest
Financial Information
WILSONVILLE, Ore., Oct. 31 /PRNewswire/ -- Mentor Graphics Corporation
(NASDAQ:MENT) today reported third quarter 1997 total revenue, of
$116,006,000 and net income of $1,901,000 ($0.03 per share). As a result of
the company's continuing patent litigation previously announced, net income,
for the quarter included onetime inventory charges and other one-time costs
which reduced earnings by $0.02 cents per share after tax. Revenue in the
third quarter of 1996 was $100,793,000 with net income of $74,000 ($0.00 per
share). In the third quarter of 1996, Mentor Graphics recognized a one-time
merger-related charge of $2,830,000 in connection with an acquisition closed
during that quarter. Excluding this one-time charge, net income for the
quarter was $2,904,000 ($0.04 per share).
Revenue for the first nine months of 1997 was $332,203,000 with a net loss
of $22,516,000. During the first quarter of 1997 Mentor Graphics recognized
special and other one-time, charges amounting to $18,400,000 after tax.
Excluding all one-time items, net loss for the first nine months of 1997 was
$0.05 per share after tax.
"In the third quarter, Mentor Graphics achieved 15 percent year over year
revenue growth on the strength of our new products," said Walden C. Rhines,
President and Chief Executive Officer. "We are looking forward to continued
competitive success for our system verification tools and intellectual
property products in the coming quarters."
Mentor Graphics' new products continued to show solid gains in the third
quarter. "Our Calibre/xCalibre products had a string of competitive wins at
Fujitisu, Chartered Semiconductor, ASPEC, SGS Thompson, and others," Dr.
Rhines said. "Further, due to our unique deep submicron verification
capabilities, Mentor Graphics has been selected for the Fabless Semiconductor
Association's 0.25 micron Standard Process Qualification test chip project.
Calibre/xCalibre is a key player in this project to qualify the next wave of
foundry process technologies. To date, these victories span the gamut from
systems companies, ASIC vendors, fabless semiconductor and library companies
and are strong evidence that our Calibre/xCalibre products are becoming
integral in the chip design process and are, emerging as the verification
standard for deep submicron design."
During the third quarter, Mentor Graphics also made important progress
with new embedded software and printed circuit board design products. The
company announced the shipment of the X-RAY Debugger and the VRTX Real-Time
operating system for Windows NT. This is the first time Mentor Graphics has
delivered embedded software products on Windows NT. As a result, orders for
embedded software products have rebounded strongly from the second quarter of
1997. Orders for these new products more than offset declines in Mentor
Graphics' older Unix based embedded software products. Mentor Graphics also
announced its world leading printed circuit board design tools will ship on
the Windows NT platform. This means circuit board designers will now have
access to the most comprehensive PCB solution on the platform of their choice.
More importantly, our NT implementation is such that our customers' investment
in existing libraries, training and design methodology is preserved the
product operates in a mixed environment which means customers may choose the
pace at which they adopt the NT platform."
Dr. Rhines continued: "In the area of Hardware/Software Co-Verification,
we once again had a record quarter for our Seamless CVE product. This product
allows hardware and software designers to simultaneously de-bug software and
hardware designs with substantial improvements in design productivity. We won
all 12 competitions we participated in this quarter, continuing our winning
streak from the second quarter. Recognizing this extraordinary competitive
success, Dataquest has named Mentor Graphics as the world leading provider of
co-verification software. According to Dataquest, Mentor Graphics has
captured more, than 80 percent of the co-verification market since its debut
in August 1996."
Turning to other areas of strength during the quarter, Dr. Rhines added:
"Our Galileo and Leonardo products for FPGA design had record bookings and
revenue for the third quarter. Galileo and Leonardo are products from our
Exemplar subsidiary. And finally, our ModelSim HDL Simulator and our Renoir
HDL Graphical entry products also had strong bookings and revenues. With
these strong new product successes, we remain committed to our goals of
returning the company to superior revenue growth and profitability through
continued introduction and growth of new products to solve the challenges
posed by system verification and deep submicron design."
This press release contains forward-looking statements. While these
statements reflect our best current judgment, they are subject to risks and
uncertainties that could cause actual results to vary. A discussion of risk
factors can be, found in our recent 10-K, 10-Q's and Annual Reports.
Mentor Graphics Corporation is the 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 $452,964,000 and
employs approximately 2,550 people worldwide. Company headquarters are
located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World
Wide Web site: mentorg.com.
MENTOR GRAPHICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except net income (loss) per share)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
System and software $ 58,190 $ 47,849 $ 170,067 $ 174,876
Service and support 57,816 52,944 162,136 152,249
Total revenues 116,006 100,793 332,203 327,125
Cost of revenues:
System and software 13,312 8,878 43,319 30,103
Service and support 25,052 22,981 80,542 68,706
Total cost of revenues 38,364 31,859 123,861 98,809
Gross margin 77,642 68,934 208,342 228,316
Operating expenses:
Research and development 28,780 21,364 82,960 66,593
Marketing and selling 36,612 34,935 113,464 105,406
General and administration 11,191 9,869 31,612 29,850
Special charges 0 0 8,560 0
Merger and acquisition
related charges 0 2,830 0 19,663
Total expenses 76,583 68,998 236,596 221,512
Operating income (loss) 1,059 (64) (28,254) 6,804
Other income, net 1,077 938 2,954 2,577
Income (loss) before
income taxes 2,136 874 (25,300) 9,381
Provision (benefit) for
income taxes 235 800 (2,784) 3,010
Net income (loss) $ 1,901 $ 74 $ (22,516) $ 6,371
Net income (loss) per common
and common equivalent
share $ 0.03 $ 0.00 $ (0.35) $ 0.10
Weighted average number of
common and common
equivalent shares
outstanding 65,956 65,002 64,901 65,301
MENTOR GRAPHICS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
As of As of
Sept. 30, 1997 December 31, 1996
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $ 141,107 $ 197,079
Trade accounts receivable, net 101,059 108,957
Other receivables 6,791 6,697
Prepaid expenses and other 23,592 25,459
Total current assets 272,549 338,192
Property, plant and equipment, net 107,486 102,253
Cash and investments, long-term 0 30,000
Other assets, net 25,663 42,914
Total $ 405,698 $ 513,359
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 0 $ 9,055
Accounts payable 9,872 15,003
Income taxes payable 13,536 19,598
Accrued and other liabilities 51,274 61,623
Deferred revenue 31,762 32,065
Total current liabilities 106,444 137,344
Long-term debt 145 52,441
Other long-term deferrals 3,491 3,934
Total liabilities 110,080 193,719
Stockholders' equity:
Common stock 298,808 297,756
Retained earnings (deficit) (12,730) 9,786
Foreign currency translation adjustment 9,540 12,098
Total stockholders' equity 295,618 319,640
Total $ 405,698 $ 513,359
SOURCE Mentor Graphics Corporation
-0- 10/31/97
/CONTACT: Gregory Hinckley, COO & CFO, 503-685-4833, or Dennis Weldon,
Treasurer, 503-685-1462, or Alex Williams, Corp. Communications, 503-685-1340,
all of Mentor Graphics Corp.; or Eileen Drake, Public Relations of KVO Inc.,
503-221-1551, for Mentor Graphics Corp./
/Web site: mentorg.com |
