7/22/2002 - Mentor Graphics Corporation (Nasdaq: MENT) today reported second quarter 2002 earnings and provided the outlook for the third quarter, and the balance of calendar year 2002. Outlook expenses exclude amortization of intangibles and special charges.
An archive copy of the webcast of the conference call is available on the Mentor website at: www.mentor.com/investor_relations. The webcast will be available until July 23, 2002.
Outlook for Third Quarter 2002
Mentor expects revenues of about $150 million range. Gross margin is expected to be about 80 percent. Operating expenses should be approximately $120 million. Other income and expense is expected to be about a $2.5 million expense, reflecting added interest expense from our convertible debt and less interest income on lower cash balances. We expect little or no tax expense in the quarter on what are expected to be essentially break-even results.
Outlook for Calendar 2002
For the entire year, revenues are expected to be in the range of $590 to $600 million. Gross margin should run approximately 80 to 81 percent for the year. Operating expense, which includes remaining redundant costs arising from the Innoveda and IKOS acquisitions, should be in the range of $450 to $460 million. Other income and expense is expected to be about a $4 million expense for the full year. We expect to accrue tax in the range of $4 million for the year. Diluted shares outstanding are expected to be 67 million.
About Mentor Graphics
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 and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $600 million and employs approximately 3,700 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site: www.mentor.com
Mentor Graphics is a registered trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.
Statements in this press release regarding the Company's outlook for future periods 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 continue selling products and services during the current very severe slowdown in the electronics industry, particularly in the telecommunications, semiconductor and personal computer segments; (ii) the Company's ability to manage expenses during the current very severe slowdown in the electronics industry; (iii) the Company's ability to successfully integrate and manage its recent and future acquisitions; (iv) the overall instability of diverse economies, including changes in regional or worldwide economic or political conditions, government trade restrictions, changes in accounting or reporting rules or interpretations, changes in the tax environment worldwide, limitations on repatriation of earnings, licensing and intellectual property rights protection; (v) the completion of customer contracts and the terms of delivery of software, hardware and other services; (vi) possible material adverse impact from the Company's emulation litigation with Cadence Design Systems or other third parties; (vii) 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; (viii) effects of the increasing volatility of foreign currency fluctuations on the Company's business and operating results, and (ix) effects of unanticipated shifts in product mix on gross margin and unanticipated shifts in geographic mix on the overall tax rate, all as may be discussed in more detail under the heading "Factors That May Affect Future Results and Financial Condition" in the Company's most recent Form 10-K or Form 10-Q. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. In addition, statements regarding outlook do not reflect potential impacts of mergers or acquisitions that have not been announced or closed as of the time the statements are made. 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.
For more information, please contact:
Previous Page | News by Category | News Search
If you found this page useful, bookmark and share it on: