Mentor Graphics Reports Fiscal 4th Quarter Results [Manufacturing Close - Up]

(Manufacturing Close - Up Via Acquire Media NewsEdge) Mentor Graphics Corp. announced financial results for the company's fiscal fourth quarter and year ended January 31.

In a release on February 28, the company reported revenues of $331.2 million, non-GAAP earnings per share of $.58, and GAAP earnings per share of $.49. For the full fiscal year, revenues were $1,088.7 million, non-GAAP earnings per share were a record $1.42, and GAAP earnings per share were $1.17.

"The fourth quarter was our sixteenth quarter in a row of exceeding non-GAAP earnings guidance. It capped a year in which Mentor Graphics achieved all-time records in revenue, operating margin and non-GAAP earnings per share," said Walden C. Rhines, chairman and CEO of Mentor Graphics. "Like our peers in EDA, we continue to benefit from semiconductor retooling requirements driven by advanced design activity. Also like some others in our industry, our business benefits from the growth of the market for system- level design, which is outpacing the market for chip design software." In fiscal year 2013 revenue grew 7.3 percent while non-GAAP and GAAP earnings per share grew 26 percent and 58 percent respectively. Non-GAAP and GAAP operating margins for the year were all-time records at 19.3 percent and 14.8 percent respectively. For the full fiscal year, non-GAAP operating expense was up 2.0 percent and up 1.2 percent on a GAAP basis.

"The company delivered record operating results in fiscal 2013, primarily as a result of continued expense control," said Gregory K. Hinckley, president of Mentor Graphics. "We solidly exceeded our non- GAAP operating margin target in fiscal 2013 and on a GAAP basis our margins are among the best in technical software. In recent years we have successfully balanced our investment in product and market development and the sales channel while delivering continuous improvement in operating results." During the fourth quarter the company announced two products related to printed circuit board design: the next-generation PADS flow, with enhancements to interactive routing, improved usability and Chinese language support; and the newest release of the HyperLynx product for high-speed design and analysis. Another announcement this quarter was the Tessent IJTAG solution, which allows designers to reuse existing test, monitoring and debugging logic embedded in IP blocks. With the new T3Ster DynTIM Tester technology, the company launched a new method of measuring thermal characteristics of interface materials. The company also introduced a hardware emulation solution for testing ARM Cortex-A9 MPCore processor-based System-on-Chip (SoC) designs using Veloce emulators.

During the quarter the company also announced that Tesla Motors, a company focused on the production of electric automobiles, has standardized on the Capital toolset for their electrical systems design. India-based Mahindra & Mahindra, a global tractor manufacturer, also standardized on the Capital products for design, engineering and analysis in their tractor and automotive divisions.

Share Repurchase In the fourth quarter of fiscal year 2013 the company used $14 million to repurchase 825 thousand shares at an average price of $16.85. During fiscal year 2013 the company repurchased 2.2 million shares for $34 million at an average cost of $15.11 per share. The company has repurchased $124 million of Mentor Graphics stock over the past two fiscal years and has $76 million available under its current share repurchase program.

Outlook For the full fiscal year 2014, the company expects revenues of about $1.155 billion, non-GAAP earnings per share of about $1.53, and GAAP earnings per share of approximately $1.41. For the first quarter of fiscal 2014, the company expects revenues of about $225 million, non-GAAP earnings per share of about $.05, and GAAP earnings per share that are approximately break-even.

Fiscal Year Definition Mentor Graphics' fiscal year runs from February 1 to January 31. The fiscal year is dated by the calendar year in which the fiscal year ends. As a result, the first three fiscal quarters of any fiscal year will be dated with the next calendar year, rather than the current calendar year.

Mentor Graphics Corp. is a company focused on electronic hardware and software design solutions.

More Information: http://www.mentor.com ((Comments on this story may be sent to newsdesk@closeupmedia.com)) (c) 2013 ProQuest Information and Learning Company; All Rights Reserved.

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