SAN FRANCISCO -- Shares of Mentor Graphics (MENT) plunged Monday after the company said it would miss analysts' third-quarter estimates and suffer a loss for the period.

The stock was recently off $2.20, or 14.4%, to $13.07.

The Wilsonville, Ore.-based developer of semiconductor software tools said EPS, excluding items, will be below break-even, as opposed to previously projected earnings of 10 cents a share.

Revenue will be $185 million, vs. previous guidance issued in August for $200 million, according to Mentor.

Analysts were expecting EPS, excluding items, of 11 cents and revenue of $201.4 million, according to Thomson Financial.

Revenue fell short of guidance when "unique circumstances" on several large bookings caused revenue to lag bookings by a quarter, according to Chairman and CEO Walden Rhines. "Because we see this revenue deferred by only a quarter, Mentor reaffirms its fiscal 2008 and 2009 outlook."

"Mentor's bookings for the quarter were strong and consistent with the assumptions underlying our previous guidance," he said.

For full fiscal 2008, the company expects revenue of $860 million and EPS, excluding items, of $1.02. Analysts were expecting revenue of $859.2 million.

The stock was down $2.37, or 15.5%, to $12.89 in recent trading.