Mentor Graphics Corp. Earnings Cheat Sheet: Beats Estimates with a Swing Up

Mentor Graphics Corporation (NASDAQ:MENT) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Mentor Graphics Corporation supplies electronic design automation systems – computer software & emulation systems used to automate the design, analysis & testing of electronic hardware & embedded systems software in electronic systems & components.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Mentor Graphics Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $4.3 million (4 cents per diluted share) in the quarter. Mentor Graphics Corporation had a net loss of $14.2 million or a loss 13 cents per share in the year earlier quarter.

Revenue: Rose 13.7% to $213.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MENT reported adjusted net income of 11 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 7 cents per share. Analysts were expecting revenue of $210 million.

Quoting Management: “Second quarter bookings were a record by a significant margin, up 25% from the previous record for a second quarter. Earnings per share were well ahead of guidance, further increasing our confidence in our outlook for the year,” said Walden C. Rhines, chairman and CEO of Mentor Graphics Corporation. “Systems business was a key driver of strength in the quarter. Traditional PCB design software bookings were up nearly a third and bookings in new and emerging products, led by the Capital electrical systems design software, nearly tripled. Scalable verification, which is used by both systems and IC customers, had bookings growth of 60%.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 9 cents in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 27.4% to $230 million in the first quarter. The figure rose 29.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 26.3% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Synopsys, Inc. (NASDAQ:SNPS), Cadence Design Systems, Inc. (NASDAQ:CDNS), Magma Design Automation, Inc. (NASDAQ:LAVA), ANSYS, Inc. (NASDAQ:ANSS), PDF Solutions, Inc. (NASDAQ:PDFS), Autodesk, Inc. (NASDAQ:ADSK), National Instruments Corp (NASDAQ:NATI), Parametric Technology (NASDAQ:PMTC), Tessera Technologies, Inc. (NASDAQ:TSRA), and Intl. Business Machines Corp. (NYSE:IBM).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)