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Mentor Graphics Corporation today announced financial results for the company’s fiscal third quarter ended October 31, 2015. The company reported revenues of $291 million, non-GAAP earnings per share of $0.28, and GAAP earnings per share of $0.12.
“Mentor achieved third-quarter guided results,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “Active evaluations of Mentor’s Veloce emulator increased in the third quarter, but the time required for completion of evaluations also increased. This, along with semiconductor industry consolidations, is having a negative impact on our business. However, demand for EDA software for system design, particularly in the transportation industry, remains robust. Embedded electronics in automotive and aerospace applications continues to show rapid growth.”
During the quarter Mentor Graphics acquired all remaining outstanding shares of its majority-owned subsidiary, Calypto Design Systems, Inc. Mentor also announced its new Tessent® ScanPro product, which achieves significant compression of test data volume and thereby reduces the cost and time required to test an integrated circuit. The company also introduced support for 25G, 50G and 100G Ethernet in the Veloce® VirtuaLAB environment, for emulation of leading-edge networking and other massive Ethernet-based designs.
Mentor announced two automotive offerings during the quarter. The Mentor Automotive Safety-Certifiable Digital Instrument Cluster solution displays safety-critical driver information simultaneously with rich 3D graphics on a single instrument cluster display. This enables compliance with safety standards without pushing up hardware or safety certification costs. The Mentor Automotive Connected OS™ software platform provides faster integration and connectivity with car network communication frameworks and consumer electronic devices.
“Semiconductor consolidation and delays in emulator decisions are now having an adverse impact on our ability to close business,” said Gregory K. Hinckley, president of Mentor Graphics. “Because we recognize revenue upfront on product sales, changes in market outlook and demand are reflected in real time in Mentor’s results. Nevertheless, with appropriate scaling of the business and continued attention to expenses, we expect to deliver FY16 non-GAAP operating margins consistent with our strategic objective.”
For the fourth quarter of fiscal 2016, the company expects revenues of about $336 million, non-GAAP earnings per share of about $0.47 and GAAP earnings per share of approximately $0.32. For the full year fiscal 2016, the company expects revenues of about $1.18 billion, non-GAAP earnings per share of about $1.40, and GAAP earnings per share of approximately $0.63.
The company announced a quarterly dividend of $0.055 per share. The dividend is payable on January 4, 2016 to shareholders of record at the close of business on December 15, 2015.
About Mentor Graphics
Mentor Graphics Corporation 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 electronic, semiconductor and systems companies. Established in 1981, the company reported revenues in the last fiscal year in excess of $1.24 billion. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777.