WILSONVILLE, Ore., February 28, 2008 –Mentor Graphics Corporation (NASDAQ: MENT) today announced fiscal 2008 fourth quarter revenue of $284.8 million, and annual revenue of $879.7 million. On a GAAP basis, fiscal 2008 fourth quarter earnings per share were $.39 and $.32 for the full year. On a non-GAAP basis, earnings per share for fiscal 2008 fourth quarter were $.72, and $1.00 for the full year.
“Mentor’s focus on building number one positions in the market has enabled it to continue to thrive and helped drive our record fourth quarter revenue and earnings,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “Our Olympus place and route solution received orders from 8 of the top 20 semiconductor manufacturers, while bookings from automotive customers climbed 25% to become about 10% of total bookings for the company.”
During the quarter, Mentor Graphics and Cadence Design Systems delivered the Open Verification Methodology (OVM) to accelerate adoption of SystemVerilog methodologies. Mentor’s Veloce® emulator was picked as one of the Hot 100 products of 2007 by EDN magazine. Mentor’s Catapult C® Synthesis productwas selected as part of Fujitsu’s Electronic System Level (ESL) reference flow. The company launched a multi-corner multi-mode signal integrity analysis tool as part of its Olympus™-SoC product line. The Japanese semiconductor consortium STARC validated an ESL reference flow featuring the Catapult C Synthesis product. The company also hosted its 6th annual Integrated Electrical Solutions Forum in Detroit with representatives from all of North America’s automotive OEMs and tier 1 suppliers.
“The company executed well in fiscal 2008, and we are positioned to continue to outperform the market in fiscal 2009,” said Gregory K. Hinckley, president of Mentor Graphics. “Additionally, we have tightened our focus on cost controls, and have taken a number of actions, including shuttering our IP division, to provide a more competitive cost basis going forward.”
Interest income resulting from the discount of long term accounts receivables has been historically reported as a component of Other income, net in the Consolidated Statement of Operations. Since the significance of the sale of term licenses that result in long term receivables has been increasing we have reclassified the interest income from Other income, net to Finance Revenue included as a component of Total Revenues in the Consolidated Statement of Operations. Along with the change in the classification of interest income, we have also reclassified the net gain or loss on the sale of long term receivables from Other income to General and Administration, and Other expense. The reclassifications have been made to the presentation of the prior years’ Consolidated Statements of Operations to conform to current year’s presentation. For the fourth quarter of fiscal 2008, the net adjustment to revenue was $4.3 million and for the year, it was $16.7 million. Net Income was unaffected.
For fiscal year 2009, the company expects revenue growth of about 4% to about $915 million, and Non-GAAP earnings per share growth between 5% and 10% to $1.05 to $1.10. GAAP earnings per share is expected to range between $.65 and $.70.
For the first quarter, revenue is expected to be about $170 million with GAAP earnings per share a loss of about $.15 and Non-GAAP earnings per share a loss of about $.10.
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