SAN FRANCISCOEDA provider Mentor Graphics Corp. said Friday (May 29) that sales for the quarter ended April 30 fell short of the company's guided range. The firm also issued guidance for the current quarter that fell short of analysts' expectations.
Mentor (Wilsonville, Ore.) reported revenue of $193.8 million for the first quarter of the company's fiscal 2010, up 8 percent from $179.2 million in the previous quarter but down 20 percent compared with $242.6 million in the prior quarter. In February, Mentor had guided for revenue of between $200 million and $210 million.
Mentor said it has no significant contract renewals scheduled for the current quarter and expects revenue to slip to $165 million. Analysts had been expecting Mentor's fiscal second quarter sales to be more than $170 million.
"Our guidance for the second quarter is the result of a lower renewal portfolio for the quarter, and an expectation that in this environment, customers will not renew early," said Gregory Hinckley, Mentor president, in a statement.
For the fiscal first quarter, Mentor reported a loss in accordance with generally accepted accounting principles (GAAP) of $13 million, or 14 cents per share. The company had guided for a GAAP net loss of 8 to 13 cents per share.
Mentor narrowed its loss compared to $25 million, or 28 cents per share, in the year-ago period. In the previous quarter, Mentor posted a net income of $31.5 million, or 34 cents per share.
"We believe the semiconductor market has stabilized, and that customers who wish to remain competitive will sustain most of their design effort," said Walden Rhines, Mentor chairman and CEO.
Rhines said Mentor benefited in the fiscal first quarter from investments in markets adjacent to traditional EDA. Ten percent of total booking for the quarter came from transportation companies and 5 percent came from the thermal analysis market, Rhines said.
Mentor said it expects to report a GAAP net loss of 41 cents per share in the fiscal second quarter. The company expects a non-GAAP loss of 10 cents per share, which was also worse than most analysts expected.
Mentor said the dollar value of contracts expiring in fiscal 2010 is a record, but that most of the contracts expire late in the year.