Mentor Graphics Beats Estimates

Updated from 5:22 p.m. EDT

SAN FRANCISCO -- Mentor Graphics(MENT Quote - Cramer on MENT - Stock Picks) blew past analysts' second-quarter earnings expectations and lifted guidance higher for the full year.

The Wilsonville, Ore., software developer said second-quarter revenue rose 15% to $205.7 million. Analysts polled by Thomson Financial were expecting revenue of $200.2 million.

The maker of semiconductor design tools said it earned $2.4 million, or 3 cents a share, reversing a loss of $448,000 in the same period of 2006.

Excluding items, EPS was 15 cents, beating analysts' expectations of 9 cents.

Shares of Mentor were recently up 68 cents, or 5.4%, to $13.17.

The company took a charge of $4.1 million in the latest quarter for in-process research-and-development related to the acquisition of Sierra Design Automation during the quarter.

The weak yen and strong euro cost the company approximately 5 cents a share in foreign exchange, said Chairman and Chief Executive Walden Rhines.

The company said third-quarter EPS before items would be 10 cents on revenue of $200 million. Analysts were expecting EPS of 16 cents on revenue of $205.3 million.

But the company raised full-year revenue guidance to $860 million, from $844 million, and projected EPS, less items, of $1.02. Analysts were anticipating EPS of 99 cents on revenue of $856 million.

For fiscal 2009, the company gave preliminary guidance for revenue of $920 million and EPS, excluding items, of $1.22.

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