Mentor Graphics Reports Fiscal Third Quarter Results


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

			Three Months Ended October 31,						Nine Months Ended October 31,
				2014			2013			2014			2013
Revenues:
	System and software		$	178,115		$	170,835		$	475,824		$	444,322
	Service and support			114,568			104,807			329,243			311,051
		Total revenues		292,683			275,642			805,067			755,373
Cost of revenues: (1)
	System and software			11,821			15,947			54,977			40,082
	Service and support			33,670			29,396			93,684			88,380
	Amortization of purchased technology			2,050			729			5,252			2,648
		Total cost of revenues		47,541			46,072			153,913			131,110
		Gross profit		245,142			229,570			651,154			624,263
Operating expenses:
	Research and development (2)			96,269			86,799			268,262			246,823
	Marketing and selling (3)			89,875			85,746			256,814			244,664
	General and administration (4)			19,851			18,917			57,006			52,452
	Equity in earnings of Frontline (5)			(1,184	)		(1,392	)		(4,625	)		(2,739	)
	Amortization of intangible assets (6)			2,233			1,440			6,009			4,650
	Special charges (7)			8,375			4,688			19,409			12,570
		Total operating expenses		215,419			196,198			602,875			558,420
Operating income				29,723			33,372			48,279			65,843
	Other income (expense), net (8)			(381	)		352			(743	)		(879	)
	Interest expense (9)			(4,934	)		(4,967	)		(14,326	)		(14,649	)
	Income before income tax			24,408			28,757			33,210			50,315
	Income tax expense (10)			3,849			3,634			1,907			1,864
		Net income		20,559			25,123			31,303			48,451
	Less: Loss attributable to noncontrolling interest (11)			(471	)		(412	)		(1,348	)		(1,271	)
		Net income attributable to Mentor Graphics
		shareholders	$	21,030		$	25,535		$	32,651		$	49,722
	Net income per share attributable to Mentor Graphics
	shareholders:
		Basic ^a	$	0.18		$	0.21		$	0.30		$	0.40
		Diluted ^a	$	0.18		$	0.20		$	0.29		$	0.39
	Weighted average number of shares outstanding:
		Basic		114,405			113,986			114,399			113,232
		Diluted		116,715			117,078			116,928			116,395

		^a We have increased (decreased) the numerator of our basic and diluted earnings per share calculation for the adjustment of the noncontrolling interest with redemption feature to its calculated redemption value, recorded directly to retained earnings, as follows:


			$	(267	)	$	(2,032	)	$	1,295		$	(3,913	)

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