Mentor Graphics Announces Revenues of $123M; Product
Revenue Growth Rate Hits 25%
Wednesday April 28, 4:44 pm Eastern Time
Company Press Release
SOURCE: Mentor Graphics Corporation
WILSONVILLE, Ore., April 28 /PRNewswire/ -- Mentor Graphics Corporation (Nasdaq: MENT - news) today announced first quarter revenue was $123 million, up 13.5% from the first quarter of 1998, and earnings-per-share was $.07, before special charges. The product growth rate year-over-year for the quarter rose to 25%, making Mentor Graphics the fastest growing major electronic design automation company on total, as well as product revenue.
''Competitive wins across the business continue to drive our product revenue growth,'' said Walden C. Rhines, president and CEO of Mentor Graphics.''Our investment in next generation tools like the Calibre® physical verification solution is paying off with strong market-share gains, as we reap the benefit of the strong industry growth in deep sub-micron. Similarly, our IC Station® product bookings more than doubled as competitors' older products did not meet the need for leading-edge custom design acceleration tools that allow designers to quickly and efficiently trouble-shoot key areas of deep-submicron designs where traditional place-and-route tools fail.''
Earnings-per-share after special charges was a loss of $.13. Special charges related primarily to the completion of our acquisition of the minority equity position in Exemplar Logic, Quickturn Design Systems acquisition related expenses, and the restructure of some businesses. Total gross margin for the quarter was 75.7%, a first quarter record for Mentor Graphics.
''The market is healthy and vibrant, and we remain bullish on the state of our business,'' said Gregory K. Hinckley, CFO and COO of Mentor Graphics. ''North America remained strong, and we saw a resurgence in Asia. Additionally, Y2K issues seem to have helped us as customers consolidated their established flows in preparation for the new millennium. Our BoardStation® product took significant share in the printed circuit board market with bookings up over 100% year-on-year.''
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 2,600 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: mentor.com. Investor Relations 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 industries 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; and (iv) the Company's ability to recruit and retain necessary personnel to research and develop, market, sell and service products. 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.
NOTE: IC Station, Boardstation, Calibre and Mentor Graphics are registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.
CONTACT: Ryerson E. Schwark, Public and Investor Relations, 503-685-1660 or ry_schwark@mentor.com, or Dennis M. Weldon, Treasurer,
503-685-1462 or dennis_weldon@mentor.com, both of Mentor Graphics Corporation.
MENTOR GRAPHICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended March 31, 1999 1998
Revenues:
System and software $72,740 $58,206
Service and support 49,833 49,802
Total revenues 122,573 108,008
Cost of revenues:
System and software 7,446 6,256
Service and support 22,382 24,547
Total cost of revenues 29,828 30,803
Gross margin 92,745 77,205
Operating expenses:
Research and development 28,869 28,405
Marketing and selling 42,315 38,954
General and administration 12,896 10,505
Special charges 16,575 5,775
Total operating expenses 100,655 83,639
Operating loss (7,910) (6,434)
Other loss, net (2,821) (3,123)
Loss before income taxes (10,731) (9,557)
Income tax benefit (2,361) (2,103)
Net loss $(8,370) $(7,454)
Net loss per share:
Basic $(.13) $(.12)
Diluted $(.13) $(.12)
Weighted average number of shares outstanding:
Basic 66,213 64,582
Diluted 66,213 64,582
MENTOR GRAPHICS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
As of As of
March 31, 1999 Dec 31, 1998
(Unaudited)
Assets
Current assets:
Cash and short-term investments $95,985 $137,585
Trade accounts receivable, net 124,013 125,844
Other receivables 7,172 7,575
Prepaid expenses and other 17,317 23,503
Deferred income taxes 10,813 10,937
Total current assets 255,300 305,444
Property, plant and equipment, net 92,009 95,214
Term receivables, long-term 50,266 36,430
Other assets, net 27,763 27,035
Total assets $425,338 $464,123
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings -- 24,000
Accounts payable 6,233 10,101
Income taxes payable 17,694 20,408
Accrued payroll and related liabilities 24,659 41,958
Accrued liabilities 39,374 33,295
Deferred revenue 46,390 36,484
Total current liabilities 134,350 166,246
Other long-term deferrals 1,608 1,425
Total liabilities 135,958 167,671
Minority interest 1,154 1,170
Stockholders' equity:
Common stock 305,845 303,352
Accumulated deficit (30,617) (22,246)
Accumulated other comprehensive income 12,998 14,176
Total stockholders' equity 288,226 295,282
Total liabilities and
stockholders' equity $425,338 $464,123
SOURCE: Mentor Graphics Corporation |
