Mentor Graphics

Mentor Graphics Reports Earnings-per-Share of $.22 On Revenues of $141.9M

Wilsonville, Ore. (ots-PRNewswire) - Mentor Graphics Corporation (Nasdaq: MENT) today reported third quarter 2000 earnings-per-diluted-share of $.22 on revenues of $141.9 million, up about 25% from the third quarter of 1999. Earnings-per-diluted-share were up from $.09 in the third quarter a year ago. "Our business grew well in the third quarter, and we saw strength across all product lines and regions," said Walden C. Rhines, president and CEO of Mentor Graphics. "Our leadership in telecommunications and networking design software, particularly wireless, helped fuel our strong performance in the quarter." Backlog continued to grow in the quarter, and reached record levels. Mentor added over one hundred new customers and total bookings grew 66% from the year ago quarter. The business was marked by breadth of interest, with no single customer transactions greater than $5 million in the quarter. Driven by the business strength, gross margin grew to 79.8%. "The growth in our backlog to record levels has increased our comfort going into our traditionally strong fourth quarter," said Gregory K. Hinckley, COO and CFO of Mentor Graphics. "Our book-to-bill for the quarter was significantly greater than 1.0, a first time for a third quarter in Mentor history. Additionally, we anticipate re-purchasing 1.5 million shares during the fourth quarter." The company will issue a separate release today, after the third quarter 2000 results conference call, providing the outlook for the fourth quarter 2000 and the year 2001. Mentor Graphics Corp. 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 more than $525 million and employs approximately 2,600 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Ore. 97070-7777. Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, Calif. 95131-2314. World Wide Web site: 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 Nine Months Ended September 30, September 30, 2000 1999 2000 1999 Revenues: System and software $79,555 $59,211 $230,209 $198,621 Service and support 62,383 54,870 177,915 157,540 Total revenues 141,938 114,081 408,124 356,161 Cost of revenues: System and software 7,057 6,517 19,904 20,931 Service and support 21,643 21,406 64,966 65,748 Total cost of revenues 28,700 27,923 84,870 86,679 Gross margin 113,238 86,158 323,254 269,482 Operating expenses: Research and development 32,119 29,828 93,287 86,384 Marketing and selling 49,546 37,486 143,280 121,266 General and administration 12,705 10,711 37,817 34,497 Special charges -- -- 6,521 21,831 Total operating expenses 94,370 78,025 280,905 263,978 Operating income 18,868 8,133 42,349 5,504 Other income (expense), net 159 (612) (2,253) (9,120) Income (loss) before income taxes 19,027 7,521 40,096 (3,616) Income tax expense (benefit) 4,186 1,655 8,821 (795) Net income (loss) $14,841 $5,866 $31,275 $(2,821) Net income (loss) per share: Basic $.23 $.09 $.49 $(.04) Diluted $.22 $.09 $.47 $(.04) Weighted average number of shares outstanding: Basic 64,202 65,841 63,998 66,042 Diluted 67,651 66,309 67,104 66,042 Pro forma earnings per share information: Diluted net income per share before one-time charges $.22 $.09 $.54 $.25 Diluted net income per share before one-time charges and amortization $.24 $.10 $.59 $.28 MENTOR GRAPHICS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) As of As of Sep 30, 2000 Dec 31, 1999 (Unaudited) Assets Current assets: Cash and short-term investments $149,530 $133,187 Trade accounts receivable, net 64,448 71,042 Term receivables, short-term 66,670 54,375 Prepaid expenses and other 24,491 21,361 Deferred income taxes 10,846 10,954 Total current assets 315,985 290,919 Property, plant and equipment, net 80,519 83,970 Term receivables, long-term 25,047 31,695 Other assets, net 45,403 42,755 Total assets $466,954 $449,339 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $7,549 $9,979 Income taxes payable 27,589 22,599 Accrued payroll and related liabilities 43,609 41,628 Accrued liabilities 28,043 37,085 Deferred revenue 60,205 46,425 Total current liabilities 166,995 157,716 Other long-term deferrals 1,221 1,221 Total liabilities 168,216 158,937 Minority interest 2,341 1,622 Stockholders' equity: Common stock 270,066 289,478 Retained earnings (deficit) 10,913 (20,362) Accumulated other comprehensive income 15,418 19,664 Total stockholders' equity 296,397 288,780 Total liabilities and stockholders' Equity $466,954 $449,339 ots Original Text Service: Mentor Graphics Corporation Internet: Contact: Ry Schwark, Public and Investor Relations,, or Dennis Weldon, Treasurer,, both of Mentor Graphics Corporation, +1-503-685-1462/ Web site: Original-Content von: Mentor Graphics, übermittelt durch news aktuell

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