SAN FRANCISCOActivist investor Carl Icahn disclosed owning nearly 7 percent of EDA vendor Mentor Graphics Corp., requested a meeting with the company's management and said its shares are undervalued, it was widely reported Friday (May 28).
Mentor Friday issued a disappointing earnings announcement, saying sales slipped on a sequential and year-to-year basis.
Multiple reports cited a regulatory filing made by Icahn on May 17. Icahn is a well known investor who often spares with management at the firms in which he has holdings, pushing for mergers, sales and new directions.
Mentor (Wilsonville, Ore.) on Friday reported first quarter sales of $180.6 million, down 24 percent from the previous period and down 7 percent from the year-ago quarter. Sales for the quarter fell short of consensus analyst expectations, which called for the company to post sales of about $182 million, according to Yahoo Finance.
Mentor posted a net loss in accordance with generally accepted accounting principles of $23 million, or 22 cents per share, compared to a GAAP net loss of $13 million in the year ago quarter. In the fourth quarter of 2009 Mentor posted a GAAP net income of $39.4 million.
Gregory Hinckley, Mentor's president, said through a statement that the first quarter marked the fifth consecutive quarter in which Mentor beat or met its own guidance.
For its fiscal second quarter, which ends July 31, Mentor said it expects sales to be about $180 million, short of the more than $192 million that consensus analyst expectations called for. For the full fiscal year, Mentor said it expects revenue to be about $870 million, with GAAP earnings per share of 10 to 15 cents.