Mentor Graphics

Mentor Graphics Reports Revenues of $155 Million; Earnings per Share of $.30 for Fourth Quarter 1999 as Orders and Backlog Reach Record Levels

WILSONVILLE, Ore. (ots-PRNewswire) - Mentor Graphics Corporation (Nasdaq: MENT) today announced revenues for the fourth quarter of 1999 of $155 million. Earnings-per-diluted-share were $.30, before special charges and a $.02 operating loss incurred by VeriBest(R), a company acquired in November of 1999. Earnings-per-share grew over 40% compared to the fourth quarter of 1998 when Mentor Graphics(R) reported earnings, before special charges, of $.21 on revenues of $145 million. "We performed well, with strong order growth in our core businesses this quarter. Orders for system-on-chip verification tools doubled year over year, and printed circuit board system design tools, FPGA design tools, and physical verification and analysis tools all had strong double-digit growth," said Walden C. Rhines, president and CEO of Mentor Graphics. "We set new records for revenue and operating earnings before special charges, and built strong momentum as we enter the year 2000. Encouragingly, the strength we saw in the business was across all regions and all major product lines. We're looking forward to accelerating growth this year." Mentor Graphics also built record backlog for the quarter. Software backlog was up 30% over the year ago quarter paced by product order growth for the quarter which was up over 20%. Gross margin hit 80% for the first time in company history. Special charges of $17 million for the quarter related principally to the acquisition and integration of VeriBest. Earnings, after charges, were $.08 per-diluted-share. "Our HDL division came back strongly in the fourth quarter, as our channel re-alignment earlier in the year began to pay off with increased sales of our FPGA Advantage(TM) suite," said Gregory K. Hinckley, CFO and COO of Mentor Graphics. "Additionally, the integration of our acquisition of VeriBest has proceeded well. We're seeing strong interest from customers for the superior printed circuit board solutions that result from combining our market leading board system design solutions with complementary technology gained in the VeriBest acquisition. The quarter beat our own expectations, and we're excited with our prospects in 2000." Mentor Graphics Corporation is a world leader in electronic hardware and software design solutions, providing products and consulting services for the world's largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of over $500 million and employs approximately 2,700 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com. FPGA Advantage is a trademark of Mentor Graphics Corporation. Certain statements contained in the press release constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: (i) the Company's ability to successfully offer products and services that compete in the highly competitive and dynamic EDA industry including the risk that the company's technology, products or inventory become obsolete; (ii) effects of the increasing volatility of foreign currency fluctuations on the Company's business and operating results; (iii) the overall instability of Asian or other economies, including changes in regional or worldwide economic or political conditions, government trade restrictions, limitations on repatriation of earnings, licensing and intellectual property rights protection; (iv) the timing of completion of customer contracts and the terms of delivery of software, hardware and other services and (v) the Company's ability to recruit and retain necessary personnel to research and develop, market, sell and service products. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. Mentor Graphics disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements to reflect future events or developments. MENTOR GRAPHICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Twelve MonthsEnded December 31, December 31, (Unaudited) 1999 1998 1999 1998 Revenues: System and software $96,704 $90,998 $295,325 $277,396 Service and support 58,269 54,337 215,809 212,997 Total revenues 154,973 145,335 511,134 490,393 Cost of revenues: System and software 8,795 6,063 29,726 26,536 Service and support 22,580 24,244 88,328 96,961 Total cost of revenues 31,375 30,307 118,054 123,497 Gross margin 123,598 115,028 393,080 366,896 Operating expenses: Research and development 32,464 31,218 118,848 117,853 Marketing and selling 51,356 51,776 172,622 169,034 General and administration 12,637 13,023 47,134 45,825 Special charges 16,765 19,135 38,596 29,442 Total operating expenses 113,222 115,152 377,200 362,154 Operating income (loss)10,376 (124) 15,880 4,742 Other loss, net 3,891 1,205 13,011 4,721 Income (loss) before income taxes 6,485 (1,329) 2,869 21 Income tax expense 1,430 243 635 540 Net income (loss) $5,055 $(1,572) $2,234 $(519) Net income (loss) per share: Basic $.08 $(.02) $.03 $(.01) Diluted $.08 $(.02) $.03 $(.01) Weighted average number of shares outstanding: Basic 64,181 65,667 65,629 65,165 Diluted 64,827 65,667 66,324 65,165 MENTOR GRAPHICS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) As of As of Dec 31, 1999 Dec 31, 1998 Assets Current assets: Cash and short-term investments $133,187 $137,585 Trade accounts receivable, net 71,042 90,597 Term receivables, short-term 54,375 44,362 Other receivables 6,440 7,575 Prepaid expenses and other 14,921 23,503 Deferred income taxes 10,954 10,937 Total current assets 290,919 314,559 Property, plant and equipment, net 83,970 95,214 Term receivables, long-term 31,695 27,315 Other assets, net 42,755 27,035 Total assets $449,339 $464,123 Liabilities and Stockholders' Equity Current liabilities: Short-term borrowings $-- $24,000 Accounts payable 9,979 10,101 Income taxes payable 22,599 20,408 Accrued payroll and related liabilities 41,628 41,958 Accrued liabilities 37,085 33,295 Deferred revenue 46,425 36,484 Total current liabilities 157,716 166,246 Other long-term deferrals 1,221 1,425 Total liabilities 158,937 167,671 Minority interest 1,622 1,170 Stockholders' equity: Common stock 289,478 303,352 Accumulated deficit (20,362) (22,246) Accumulated other comprehensive income 19,664 14,176 Total stockholders' equity 288,780 295,282 Total liabilities and stockholders' equity $449,339 $464,123 CONTACT: Ryerson Schwark, Public and Investor Relations, ry_schwark@mentor.com, or Dennis Weldon, Treasurer, dennis_weldon@mentor.com, both of Mentor Graphics Corporation, 503-685-1462. ots Original Text Service: Mentor Graphics Corporation Internet: http://www.newsaktuell.de Contact: Ryerson Schwark, Public and Investor Relations, ry_schwark@mentor.com, or Dennis Weldon, Treasurer, dennis_weldon@mentor.com, both of Mentor Graphics Corporation, 503-685-1462 Web site: http://www.mentor.com Original-Content von: Mentor Graphics, übermittelt durch news aktuell

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