Mentor Graphics

Mentor Graphics Announces EPS of $.17 Up From $.09 a Year Ago, On Revenues of $138.1M

Wilsonville, Ore. (ots-PRNewswire) - Mentor Graphics Corporation (Nasdaq: MENT) today announced second quarter 2000 revenues of $138.1 million, and earnings-per-diluted-share of $.17, before one-time charges. Earnings-per-share nearly doubled over the year ago quarter. Bookings and backlog were again strong, backlog setting another all-time record. Product backlog was up over 50% from the year ago quarter, while product bookings were up 25% over second quarter a year ago. "Our leadership in the exploding communications market, wireless in particular, has fueled our strong product growth," said Walden C. Rhines, president and CEO of Mentor Graphics(R). "The wireless market is one of the first electronics markets to begin to tackle the challenges of the convergence of Internet, consumer and communications systems. Customers building these next-generation products face some of the toughest design and time-to-market pressures anywhere in the electronics industry. We believe our leadership, as evidenced by our success in wireless design, will extend to other markets as they too begin to face these same design challenges." Earnings-per-diluted-share in the second quarter 2000, after one-time charges and amortization, were $.09 versus break-even for the same quarter a year ago. Current quarter charges were acquisition related. During the quarter, Mentor acquired Escalade Corporation and Descon Informationssysteme GmbH. Gross margin of 78.7% was helped by strengthening services and emulation margins. "This quarter we began to receive unexpected multi-million dollar orders from customers, a sign of significant product momentum," said Gregory K. Hinckley, CFO and COO of Mentor Graphics. "More significantly, our success this quarter was driven by a broadening of our customer base as we made our numbers on many, smaller deals. The strength in our results was across all areas of business, and we're pleased that we continue to exceed street expectations." 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 2,600 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: . NOTE: Mentor Graphics is a registered 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 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 Six Months Ended June 30, June 30, 2000 1999 2000 1999 Revenues: System and software $78,015 $66,670 $150,654 $139,410 Service and support 60,037 52,837 115,532 102,670 Total revenues 138,052 119,507 266,186 242,080 Cost of revenues: System and software 7,518 6,968 12,847 14,414 Service and support 21,879 21,960 43,323 44,342 Total cost of revenues 29,397 28,928 56,170 58,756 Gross margin 108,655 90,579 210,016 183,324 Operating expenses: Research and development 31,159 27,687 61,168 56,556 Marketing and selling 48,961 41,465 93,734 83,780 General and administration 12,182 10,890 25,112 23,786 Special charges 6,521 5,256 6,521 21,831 Total operating expenses 98,823 85,298 186,535 185,953 Operating income (loss) 9,832 5,281 23,481 (2,629) Other income (expense), net (2,144) (5,687) (2,412) (8,508) Income (loss) before income taxes 7,688 (406) 21,069 (11,137) Income tax expense (benefit) 1,691 (89) 4,635 (2,450) Net income (loss) $5,997 $(317) $16,434 $(8,687) Net income (loss) per share: Basic $.09 $.00 $.26 $(.13) Diluted $.09 $.00 $.25 $(.13) Weighted average number of shares outstanding: Basic 63,400 66,355 63,876 66,225 Diluted 66,254 66,355 66,648 66,225 Pro forma earnings per share information: Diluted net income per share before one-time charges $.17 $.09 $.32 $.16 Diluted net income per share before one-time charges and amortization $.18 $.10 $.36 $.18 MENTOR GRAPHICS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) As of As of June 30, 2000 Dec 31, 1999 (Unaudited) Assets Current assets: Cash and short-term investments $120,723 $133,187 Trade accounts receivable, net 80,951 71,042 Term receivables, short-term 55,888 54,375 Other receivables 4,955 6,440 Prepaid expenses and other 17,806 14,921 Deferred income taxes 10,897 10,954 Total current assets 291,220 290,919 Property, plant and equipment, net 79,427 83,970 Term receivables, long-term 29,362 31,695 Other assets, net 44,610 42,755 Total assets $444,619 $449,339 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 7,533 9,979 Income taxes payable 24,329 22,599 Accrued payroll and related liabilities 34,747 41,628 Accrued liabilities 34,143 37,085 Deferred revenue 61,706 46,425 Total current liabilities 162,458 157,716 Other long-term deferrals 1,216 1,221 Total liabilities 163,674 158,937 Minority interest 1,857 1,622 Stockholders' equity: Common stock 265,552 289,478 Accumulated deficit (3,928) (20,362) Accumulated other comprehensive income 17,464 19,664 Total stockholders' equity 279,088 288,780 Total liabilities and stockholders' equity $444,619 $449,339 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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