Mentor Graphics

Mentor Graphics Announces EPS More Than Doubles to $.16 on Revenues of $128M
Orders Up 15% With Record Backlog

Wilsonville, Ore. (ots-PRNewswire) - Mentor Graphics Corporation (Nasdaq: MENT) today announced first quarter 2000 revenues of $128.1 million, and earnings-per-diluted-share of $.16, exceeding First Call(R) analyst consensus estimates of $.09. Backlog reached record levels for a first quarter. Gross margin performance at 79.1% added approximately $.05 to earnings-per-share above First Call consensus estimates. An earlier reported gain on a land sale was significantly offset by other non-operating costs. Bookings were strong, up over 15% over the year ago quarter. "We continue to see strength across our business as customers move to the next generation design tools we offer," said Walden C. Rhines, president and CEO of Mentor Graphics(R). "We are executing our strategy. We are building on our leadership in key markets to offer our customers more complete integrated solutions in board system design, deep-submicron physical verification and analysis, HDL and FPGA design, and system-on-chip design and verification." In the quarter, Mentor also signed a major, three-year deal for FPGA design tools with Altera Corporation. With this agreement, Mentor has agreements to provide FPGA design tools to all of the world's major FPGA vendors. The company launched many new products and enhancements during the quarter including: Celaro(TM) emulator partitioning, 64-bit and system-on-chip Design-for-Test tools, Modelsim(R) Linux server farm features, MachPA(TM) for power analysis, linked FPGA and printed circuit board design tools, Web-based IP cores for FPGA design, Exemplar(TM) FPGA Synthesis enhancements, IC Station(R) design visualization tools, and system-on-chip design kits. Additionally, the current quarter saw the launch of several more tools and enhancements, the advanced placement tool TeraPlace(TM), a next-generation high-performance formal verification product, FormalPro(TM) and further enhancements to the market-leading Calibre(R) physical verification product line. "Our execution continues to yield good results for us," said Gregory K. Hinckley, COO and CFO of Mentor Graphics. "Backlog is the highest ever for a first quarter, and the backlog quality is excellent. Our focus on business execution helped us boost margins, which resulted in our strong earnings. Particular improvements were seen in our emulation and consulting lines of business. We see improved prospects this year. Additionally, we repurchased 2.5 million shares during the quarter." 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: 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 and (vi) possible adverse impact from the Company's litigation with Cadence Design Systems or other third parties. 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) (Unaudited) Three months ended March 31, 2000 1999 Revenues: System and software $72,639 $72,740 Service and support 55,495 49,833 Total revenues 128,134 122,573 Cost of revenues: System and software 5,329 7,446 Service and support 21,444 22,382 Total cost of revenues 26,773 29,828 Gross margin 101,361 92,745 Operating expenses: Research and development 30,009 28,869 Marketing and selling 44,773 42,315 General and administration 12,930 12,896 Special charges -- 16,575 Total operating expenses 87,712 100,655 Operating income (loss) 13,649 (7,910) Other loss, net (268) (2,821) Income (loss) before income taxes 13,381 (10,731) Income tax expense (benefit) 2,944 (2,361) Net income (loss) $10,437 $(8,370) Net income (loss) per share: Basic $.16 $(.13) Diluted $.16 $(.13) Weighted average number of shares outstanding: Basic 64,124 66,213 Diluted 66,781 66,213 MENTOR GRAPHICS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) As of As of March 31, 2000 Dec 31, 1999 (Unaudited) Assets Current assets: Cash and short-term investments $100,139 $133,187 Trade accounts receivable, net 65,374 71,042 Term receivables, short-term 61,319 54,375 Other receivables 5,799 6,440 Prepaid expenses and other 20,570 14,921 Deferred income taxes 10,889 10,954 Total current assets 264,090 290,919 Property, plant and equipment, net 79,573 83,970 Term receivables, long-term 29,616 31,695 Other assets, net 40,577 42,755 Total assets $413,856 $449,339 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 7,071 9,979 Income taxes payable 23,354 22,599 Accrued payroll and related liabilities 27,602 41,628 Accrued liabilities 32,392 37,085 Deferred revenue 57,272 46,425 Total current liabilities 147,691 157,716 Other long-term deferrals 1,165 1,221 Total liabilities 148,856 158,937 Minority interest 1,696 1,622 Stockholders' equity: Common stock 256,659 289,478 Accumulated deficit (9,925) (20,362) Accumulated other comprehensive income 16,570 19,664 Total stockholders' equity 263,304 288,780 Total liabilities and stockholders' equity $413,856 $449,339 CONTACT: Ryerson Schwark, Public and Investor Relations, 503-685-1660, or, or Dennis Weldon, Treasurer, 503-685-1462, or, both of Mentor Graphics Corporation. ots Original Text Service: Mentor Graphics Corporation Internet: Contact: Ryerson Schwark, Public and Investor Relations, 503-685-1660, or, or Dennis Weldon, Treasurer, 503-685-1462, or, both of Mentor Graphics Corporation Web site: Original-Content von: Mentor Graphics, übermittelt durch news aktuell

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