Net Income for nominal Q3 2010 jumped into the black at $15.256 million compared to a net loss of $27.034 million for nominal Q3 2009, and a net loss of $14.2 million in sequential Q2 2010. Despite the black ink of Q3 2010, for nine months YTD the company remains in red ink to the tune of some $22 million, although it was deeper in $61 million of red ink after nine months last year.
GAAP earnings per share in nominal Q3 2010 were $0.14, vs. a loss of $0.28 per share in Q3 2009, and a loss of $0.13 per share in sequential Q2 2010. (The company's earnings per share guidance for Q3 2010 three months ago was for $0.08 a share).
“The strength of our (2010) third quarter was broad-based with bookings up 60% over the year ago quarter,” said Dr. Walden C. Rhines, CEO and chairman of Mentor Graphics. “Our strategy of focusing on areas of differentiation rewarded us this quarter with strong growth in emulation, printed circuit board design software, design for test, physical verification and a number of our newer system-oriented products like automotive networking. Our diversification also helped drive the business with over 30% of new customers coming from non-traditional segments. We remain confident that our strategy will continue to drive earnings growth for the company.”
During the quarter, the company launched new analysis capability in the FloTHERM® thermal analysis tool, which allows designers to easily find and correct bottlenecks in heat flow in a design. (This capability was featured in the December 13, 2010 EDA WEEKLY ONE YEAR LATER column).
The company's embedded software division released Mentor Embedded ReadyStart™ Platform, a new easy-to-use platform for rapid development of embedded systems, and a version of the Inflexion Platform™ graphical user interface for the Android™ platform. Additionally, the embedded market analyst firm VisionMobile reported that Mentor's Nucleus® real-time operating system is the market leader in handsets with over 2.3 billion copies shipped.
“The third quarter was a record on revenue, bookings and product book-to-bill,” said Gregory K. Hinckley, president of Mentor Graphics. “Despite some headwinds from currency and product mix, we are confident that this momentum will continue into the fourth quarter. As a result, we are raising guidance.”
For the fiscal fourth quarter, the company expects revenue of about $293 million, and GAAP earnings per share of about $0.40. For the full fiscal year 2011 ending January 31, 2011 the company sees revenue in the range of $900 million, and GAAP earnings per share of approximately $0.19.
Mentor Graphics self description
Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics, semiconductor and systems companies. Established in 1981, the company reported revenues over the last 12 months of about $850 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.
Chart courtesy of Yahoo Finance
Mentor Graphics News Item
On December 23, 2010 Mentor Graphics Corporation (NASDAQ:MENT) announced that the Calibre® InRoute ™ , Catapult® C , and FloTHERM ® products were selected for EDN magazine's Hot 100 for 2010. The Hot 100 is EDN's list of "the products and technologies that in 2010 heated up the electronics world and grabbed the attention of our editors and our readers."
Olympus-SoC and Calibre Speed IC Physical Design Closure
The Calibre InRoute platform allows designers to natively invoke Calibre tools within the Olympus-SoC™ place and route system to achieve true manufacturing closure during physical design. The Calibre InRoute product automatically detects and fixes design rule checking (DRC) violations and performs design for manufacturing (DFM) enhancements while optimizing for area, timing, power and signal integrity. The full power of the Olympus-SoC and Calibre platforms together improve design quality, eliminate late-stage surprises, and significantly reduce time to closure.
FloTHERM 9 Addresses Thermal Bottlenecks
Version nine of the FloTHERM 3D CFD (computational fluid dynamics) software for electronics cooling applications includes patent-pending technology, including a bottleneck field that shows areas in a design where a heat path is being congested as it attempts to flow from high junction temperature points to ambient. Design changes to these bottlenecks can help solve the heat flow problem. The Shortcut field highlights areas where the addition of a simple element to the design will provide a new effective heat flow path to ambient temperature. As a result, instead of experimenting with trial and error solutions, engineers can achieve a better solution significantly faster.
This capability was highlighted in the December 13, 2010 EDA WEEKLY feature ONE YEAR LATER.
Mentor Adds SystemC Support to Catapult C
The Catapult C Synthesis tool added SystemC synthesis, expanding the Catapult C tool's full-chip synthesis capabilities. This complements the Catapult C tool's existing untimed ANSI C++ support for algorithmic, control logic, and low-power synthesis capabilities by expanding its full-chip synthesis application scope through the addition of SystemC synthesis for efficient handling of specific SoC needs such as complex bus interfaces, SoC interconnect and TLM2.0-based ESL flows.
EDN.com is a comprehensive information source for the EOEM (electronics original equipment manufacturer) segment, providing in-depth technical information for electronics design engineers and news and strategic business insight for executives.
On December 1, 2010 Synopsys, Inc. (NASDAQ: SNPS) reported results for its fourth FISCAL quarter and fiscal year 2010, both ending Saturday October 30, 2010. Synopsys' fourth fiscal quarter is our nominal Q3 2010.
Speaking shortly after the December 1, 2010 earnings release, Synopsys Senior Account Director Diane Hayward summarized the results as follows: “In short, Synopsys reported a strong end to its fiscal year and is entering fiscal 2011 with an excellent outlook. The company has good technical and customer momentum, and despite the recession, has increased market share, achieved revenue growth, continued with strong R&D investments and delivered new products. It will continue its efforts to explore M&A that broadens its total addressable market and move forward with a financial objective to achieve high-single digit EPS growth.“
For nominal Q3 2010, Synopsys reported revenue of $375.5 million, of $18.5 million above its top-of-the-range guidance number of $357 million, and up 11% compared to $338.3 million year-over-year for nominal Q3 2009. Sequentially, Q3 2010 revenue was 11.4% over nominal Q2 2010 revenue of $336.9 million.