SAN FRANCISCO—Mentor Graphics Corp. reported sales and earnings for the quarter ended July 31 that exceeded analysts' expectations, as the company's CEO said Mentor and fellow EDA vendors are benefiting from customers' transition to designing at more advanced nodes.
Walden Rhines, Mentor's chairman and CEO, said the company set all time fiscal second quarter highs in revenue and earnings. Rhines said Mentor is not alone in strong momentum, with the entire EDA industry benefiting from tool sales as customers transition to 28- and 20-nm designs.
"The leading indicators we monitor suggest that not only is the current environment showing record demand but the outlook is strong," Rhines said.
Mentor (Wilsonville, Ore.) reported fiscal second quarter sales of $240.8 million, down 3 percent from the previous quarter and up 13 percent from the year-ago quarter. Mentor reported a net income in accordance with generally accepted accounting principles (GAAP) of $18.2 million, or 21 cents per share, down 35 percent compared with the previous quarter and up 323 percent compared with the year-ago quarter.
Mentor's sales and earnings for the quarter exceeded analysts' expectations.
Mentor said it expects sales to grow to about $265 million in the fiscal third quarter, which closes in October. The company said it expects to report GAAP earnings of about 23 cents per share.
For its fiscal 2013, which closes Jan. 31, Mentor said it continues to expect sales to be about $1.1 billion. The company increased its target for GAAP earnings for the year to about $1.23 from about $1.20.