Mentor Graphics reported earnings of 12 cents a share in the third quarter on revenue of $117.9 million, up from
3 cents a share in the same period of 1997. Product revenue increased
10.6 percent, for a second consecutive quarter of double-digit growth. Gross
margin reached 75.1 percent, a record level for Mentor Graphics.
"Product revenue growth now places us as the second fastest growing of the
EDA companies, nearly doubling the product revenue growth of
our next nearest competitor," said Gregory K. Hinckley, Mentor's chief
operating officer. "Worldwide product bookings again surged, up 20 percent
year-over-year for the third quarter. U.S. bookings were particularly strong,
up nearly 40 percent."
Revenue for the quarter was up $1.9 million from the third quarter of
1997. New product order growth was nearly 45 percent, making Mentor less
dependent on older products, which now represent only about 25 percent of
orders, the Wilsonville, Ore., company said.
"We successfully called the next major growth market, verification, and our
numbers are bearing us out," said Walden Rhines, CEO of Mentor
Graphics. "Orders for our digital simulation product are up over 100 percent from
a year ago."
Verification products continued to lead Mentor's growth, and emulation
revenue growth more than doubled. Physical verification and extraction
products continued to be strong, winning 16 and seven new accounts,
respectively, in the quarter, Rhines said.