Mentor Graphics Reports 7.3% Growth in Annual Revenues


MENTOR GRAPHICS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share data)

			Three Months Ended January 31,						Twelve Months Ended January 31,
				2013			2012			2013			2012
Revenues:
	System and software		$	226,267		$	220,046		$	681,881		$	631,549
	Service and support			104,971			100,309			406,846			383,089
		Total revenues		331,238			320,355			1,088,727			1,014,638
Cost of revenues: (1)
	System and software			14,984			13,737			64,280			54,972
	Service and support			30,775			29,014			117,609			108,690
	Amortization of purchased technology			1,709			1,924			7,801			9,796
		Total cost of revenues		47,468			44,675			189,690			173,458
		Gross margin		283,770			275,680			899,037			841,180
Operating expenses:
	Research and development (2)			93,751			90,180			313,962			310,758
	Marketing and selling (3)			95,160			89,890			338,653			326,608
	General and administration (4)			20,016			22,756			74,324			74,811
	Equity in earnings of Frontline (5)			(134	)		(246	)		(1,764	)		(2,268	)
	Amortization of intangible assets (6)			1,368			1,544			5,915			5,905
	Special charges (7)			2,514			5,786			6,314			13,174
		Total operating expenses		212,675			209,910			737,404			728,988
Operating income				71,095			65,770			161,633			112,192
	Other income (expense), net (8)			(1,193	)		(314	)		(1,432	)		1,576
	Interest expense (9)			(4,883	)		(4,755	)		(18,866	)		(31,444	)
	Income before income tax			65,019			60,701			141,335			82,324
	Income tax expense (benefit) (10)			3,536			3,366			2,701			(1,063	)
		Net income		61,483			57,335			138,634			83,387
	Less: Loss attributable to noncontrolling interest (11)			(263	)		(485	)		(102	)		(485	)
		Net income attributable to Mentor Graphics shareholders	$	61,746		$	57,820		$	138,736		$	83,872
	Net income per share attributable to Mentor Graphics shareholders:
		Basic	$	0.55		$	0.53		$	1.25		$	0.76
		Diluted (a)	$	0.49		$	0.52		$	1.17		$	0.74
	Weighted average number of shares outstanding:
		Basic		112,623			109,290			110,998			110,138
		Diluted		115,167			112,122			114,017			112,915

	Refer to following page for a description of footnotes.

	(a) We have reduced the numerator of our diluted earnings per share calculation by $5,272 for both the three and twelve months ended January 31, 2013 for the accumulated adjustment of the noncontrolling interest with redemption feature to its calculated redemption value at January 31, 2013, recorded directly to retained earnings.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 Next Page »