Mentor Graphics Provides Outlook
WILSONVILLE, Ore.--(BUSINESS WIRE)--April 25, 2002--Mentor
Graphics Corporation (Nasdaq: MENT - news) today reported first quarter 2002
earnings and provided the outlook for the second quarter, and the
calendar year 2002.
These projections reflect the acquisitions of IKOS and Accelerated
Technology, and exclude any effects of the pending acquisition of
Innoveda announced this week, amortization of intangibles and special
charges.
An archive copy of the webcast of the conference call is available
on the Mentor website at: www.mentor.com/investor_relations. The
webcast will be available until April 30, 2002.
Outlook for Second Quarter 2002
Mentor expects revenues of about $153 million. Gross margin is
expected to be between 82 and 83 percent. Operating expenses are
expected to increase about 13 percent sequentially. Other income and
expense is expected to be roughly $1 million of income. The tax rate
should remain at 20 percent.
Outlook for Calendar 2002
Revenues are expected in the $665 million range. Gross margin
should run approximately 83 percent for the year. Operating expenses
are estimated to increase about 13% over 2001 levels due, in part, to
recording litigation expense as an operating expense in 2002. Other
income and expense is expected to be an income of about $5 million
for the full year. The tax rate should remain steady at 20 percent
through the year.
About Mentor Graphics
Mentor Graphics Corporation (Nasdaq: MENT - news) is a world leader in
electronic hardware and software design solutions, providing products,
consulting services and award-winning support for the world's most
successful electronics and semiconductor companies. Established in
1981, the company reported revenues over the last 12 months of about
$600 million and employs approximately 3,500 people worldwide.
Corporate headquarters are located at 8005 S.W. Boeckman Road,
Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are
located at 1001 Ridder Park Drive, San Jose, California 95131-2314.
World Wide Web site: www.mentor.com.
Mentor Graphics is a registered trademark of Mentor Graphics
Corporation. All other company or product names are the registered
trademarks or trademarks of their respective owners.
Certain statements contained in the press release constitute
"forward-looking" statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or achievements
of the Company or industry results to be materially different from any
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
following: (i) the Company's ability to successfully offer products
and services that compete in the highly competitive and dynamic EDA
industry including the risk that the company's technology, products or
inventory become obsolete; (ii) the company's ability to continue
selling products and services during the current very severe slowdown
in the electronics industry, particularly in the telecommunications
and semiconductor segments; (iii) the company's ability to manage
expenses during the slowdown in the electronics industry; (iv) the
overall instability of diverse economies, including changes in
regional or worldwide economic or political conditions, government
trade restrictions, changes in accounting or reporting rules or
interpretations, changes in the tax environment worldwide, limitations
on repatriation of earnings, licensing and intellectual property
rights protection; (v) the completion of customer contracts and the
terms of delivery of software, hardware and other services; (vi) the
Company's ability to successfully integrate and manage its recent and
future acquisitions; (vii) possible adverse impact from the Company's
emulation litigation with Cadence Design Systems or other third
parties; and (viii) effects of the increasing volatility of foreign
currency fluctuations on the Company's business and operating results.
Given these uncertainties, prospective investors are cautioned not to
place undue reliance on such forward-looking statements. Mentor
Graphics disclaims any obligation to update any such factors or to
publicly announce the results of any revisions to any of the
forward-looking statements to reflect future events or developments.
Contact:
Mentor Graphics
Ry Schwark, 503/685-1462, ry_schwark@mentor.com
Dennis Weldon, 503/685-1462, dennis_weldon@mentor.com
