Mentor Graphics Corporation has announced financial results for the company’s fiscal first quarter ended April 30, 2013. The company reported revenues of $226.5 million, non-GAAP earnings per share of $0.10, and GAAP earnings per share of $0.01.
“Sales force execution and strong customer demand produced an all-time bookings record for a first quarter. Strength was evident in the IC design to silicon, scalable verification, driven by emulation demand, and new and emerging product categories. The year is off to a great start and Q2 is already showing continued bookings strength,” said Walden C. Rhines, chairman and CEO. “During the quarter we initiated a $0.045 quarterly dividend. This has been well received by our shareholders.”
“Mentor’s business was exceptional in the first quarter, with bookings more than doubling year over year,” said Gregory K. Hinckley, president. “First quarter non-GAAP earnings per share of $0.10 were double our guidance and represented the 17th consecutive quarter of exceeding non-GAAP guidance. Earnings benefited from continuous rigorous attention to operating expenses and a higher margin for our hardware business.”
During the first quarter the company announced the purchase of automotive assets of MontaVista, LLC, which establishes Mentor Graphics as the number one commercial provider of Linux-based, automotive in-vehicle infotainment solutions. Mentor also announced the FloTHERM® XT product, the industry’s first electronics cooling simulation solution that integrates both mechanical and electronic design automation from conceptual through detailed design.
The company introduced the Embedded Sourcery™ CodeBench Virtual Edition product. This allows software developers to remain in their native development environment while they optimize software on virtual prototypes and emulation platforms, before and after first silicon. Also in the quarter, Mentor Graphics and Mercedes-Benz Trucks announced that the Capital® electrical systems software suite was successfully deployed in the development of Daimler’s flagship heavy truck.
Outlook
For the second quarter of fiscal 2014, the company expects revenues of about $245 million, non-GAAP earnings per share of about $0.17, and GAAP earnings per share that are approximately $0.14. For the full fiscal year 2014, the company expects revenues of about $1.155 billion. The company is forecasting non-GAAP earnings per share of about $1.55, and GAAP earnings per share of approximately $1.33.
Share Repurchase
In the first quarter of fiscal year 2014, the company used $20 million to repurchase 1.2 million shares at an average price of $17.37 per share. The company has repurchased $144 million of Mentor Graphics stock since March 2011 and has $56 million available under the current Board authorized share repurchase program.