Mentor Graphics Tops Estimates - TheStreet

Mentor Graphics Tops Estimates

But revenue slips 13%.
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SAN FRANCISCO -- Fresh from successfully fending off a hostile takeover, Mentor Graphics (MENT) beat second-quarter expectations Thursday, while reaffirming full-year guidance.

Shares were up 98 cents, or 9.3%, to $11.42 in recent trading.

The Wilsonville, Ore., company posted a loss of $17.2 million, or 19 cents a share, vs. a profit of $2.2 million, or 2 cents a share, in the year-ago period.

Excluding special items, Mentor lost 2 cents a share, far exceeding analysts' expectations for a loss of 12 cents a share.

The developer of software tools for semiconductor makers said revenue fell 13% to $182.4 million. Analysts were looking for $174.5 million, according to Thomson Reuters.

Consulting revenue rose 25% over last year, President Gregory Hinckley said in a statement. "I view increased bookings in consulting as a leading indicator of an improving business climate."

Accordingly, the company projected third-quarter revenue of $220 million and EPS, excluding special items, of 15 cents to 20 cents. Analysts were expecting revenue of $215.8 million and EPS of 20 cents. The company reaffirmed prior guidance for full-year revenue of $915 million and EPS, less items, of $1.05 to $1.10.

The stock dropped 26% Friday after rival

Cadence Design Systems

(CDNS) - Get Report

withdrew its bid of $1.6 billion, or $16 a share, for Mentor. In its decision, Cadence cited difficulty in arranging financing.

Mentor noted that the Federal Trade Commission had made a second request for information Friday, which would have extended regulatory review of the potential deal.

Competitor

Synopsys

(SNPS) - Get Report

is due to report earnings Wednesday after the bell.