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Mentor Graphics Corporation today announced financial results for the company’s fiscal second quarter ended July 31, 2016. The company reported revenues of $254 million, GAAP earnings per share of $0.03 and non-GAAP earnings per share of $0.15.
“Mentor’s second quarter results exceeded revenue and earnings-per-share guidance,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “Emulation was strong this quarter, as we did business with more than 20 customers including four new logos, and reinforced our lead in networking applications. In addition, automotive products had another strong bookings quarter.”
During the quarter the company launched the MicReD®Power Tester 600A product, which tests thermal reliability of power electronics devices in electric and hybrid vehicles. Mentor also announced a PADS® software-based platform which enables individual engineers and small teams to develop PCB-based systems from concept through manufacturing hand-off. The company also introduced the Tanner™ Calibre One IC verification suite, now providing access to the Calibre® verification tools for Tanner EDA’s user base.
During the quarter Mentor announced that Barefoot Networks, a pioneer in high-performance network switches, used the Veloce emulation platform to verify Barefoot’s fast and fully programmable switch. In automotive news, Lear Corporation deployed Capital® software to address design complexity issues and reduce development times.
“System company renewals were strong in the second quarter, partly offsetting merger and acquisition-related weakness in the semiconductor industry, and we have a large portfolio of system company renewals in the coming quarters,” said Gregory K. Hinckley, president of Mentor Graphics. “Operationally, we continue to maintain rigorous attention to expense control.”
For the third quarter of fiscal 2017, the company expects revenues of about $310 million, GAAP earnings per share of approximately $0.30 and non-GAAP earnings per share of about $0.42. For the full year fiscal 2017, the company reaffirms expected revenues of about $1.215 billion, GAAP earnings per share of approximately $1.19 and non-GAAP earnings per share of about $1.68. Cash flow from operations in fiscal 2017 is expected to be approximately $200 million.
The company announced a quarterly dividend of $0.055 per share. The dividend is payable on September 30, 2016 to shareholders of record at the close of business on September 19, 2016.
Fiscal Year Definition
Mentor Graphics Corporation’s fiscal year runs from February 1 to January 31. The fiscal year is dated by the calendar year in which the fiscal year ends. As a result, the first three fiscal quarters of any fiscal year will be dated with the next calendar year, rather than the current calendar year.
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 of approximately $1.18 billion. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777.