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
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.
is due to report earnings Wednesday after the bell.