Mentor Graphics Q2 Profit Rises - Update

(RTTNews) - Mentor Graphics Corp. (MENT) Thursday reported an increase in profit for the second-quarter as the chip-design software provider's revenues grew on higher demand for its products, as chip-makers compete to develop smaller and more efficient chips.

System and software revenues grew to $150.2 million from $140.0 million last year, while service and support climbed to $103.0 million from $100.9 million last year.

Mentor Graphics provides electronic design automation software and hardware tools for designing and testing of complex electronic systems. Revenue growth was driven largely by strong demand among chip makers for its software tools.

Wilsonville, Oregon-based Mentor Graphics second-quarter profit rose to $24.0 million or $0.19 per share from $18.2 million or $0.16 per share last year.

Adjusted earnings for the quarter rose to $0.26 per share from $0.22 per share last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $253.2 million from $240.8 million last year. Analysts expected revenues of $244.90 million for the second quarter.

Looking forward to the third quarter, the company expect earnings of about $0.11 per share, adjusted earnings of around $0.19 per share and revenues of about $260 million. Analysts currently expect earnings of $0.19 per share on revenues of $251.57 million for the quarter.

For the fiscal year 2014, the company currently projects earnings of about $1.31 per share, down from its prior estimate of $1.33 per share. Adjusted earnings is now expected to be $1.59 per share, up from its prior outlook of $1.55 per share. The company maintained its revenue guidance for the full year of $1.155 billion.

Analysts currently expect earnings of $1.56 per share on revenues of $1.16 billion for the full year.

MENT closed Thursday at $21.29, up $0.32 or 1.53%, on the Nasdaq.