Mentor Graphics Corporation (NASDAQ:MENT) today 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 of
Mentor Graphics. “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 of Mentor Graphics. “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.
Dividend
The company announces a second quarter dividend of $0.045 per
share on outstanding common stock. The dividend is payable on July
1, 2013 to shareholders of record as of the close of business on
June 10, 2013.
Fiscal Year Definition
Mentor Graphics’ fiscal year runs from February 1 to January 31.
The fiscal year is dated by the calendar year in which the fiscal
year ends. As a result, the first three fiscal quarters of any
fiscal year will be dated with the next calendar year, rather than
the current calendar year.
Discussion of Non-GAAP Financial Measures
Mentor Graphics’ management evaluates and makes operating
decisions using various performance measures. In addition to our
GAAP results, we also consider adjusted gross profit, operating
income, net income, and earnings per share which we refer to as
non-GAAP gross profit, operating income, net income, and earnings
per share, respectively. These non-GAAP measures are derived from
the revenues of our product, maintenance, and services business
operations and the costs directly related to the generation of
those revenues, such as cost of revenue, research and development,
sales and marketing, and general and administrative expenses, that
management considers in evaluating our ongoing core operating
performance. These non-GAAP measures exclude amortization of
intangible assets, special charges, equity plan-related
compensation expenses, interest expense associated with the
amortization of original issuance debt discount on convertible
debt, the equity in earnings or losses of unconsolidated entities
(except Frontline PCB Solutions Limited Partnership (Frontline)),
and the impact on basic and diluted earnings per share of changes
in the calculated redemption value of noncontrolling interests,
which management does not consider reflective of our core operating
business.
Management excludes from our non-GAAP measures certain recurring
items to facilitate its review of the comparability of our core
operating performance on a period-to-period basis because such
items are not related to our ongoing core operating performance as
viewed by management. Management considers our core operating
performance to be that which can be affected by our managers in any
particular period through their management of the resources that
affect our underlying revenue and profit generating operations
during that period. Management uses this view of our operating
performance for purposes of comparison with our business plan and
individual operating budgets and allocation of resources.
Additionally, when evaluating potential acquisitions, management
excludes the items described above from its consideration of target
performance and valuation. More specifically, management adjusts
for the excluded items for the following reasons:
- Identified intangible assets consist
primarily of purchased technology, backlog, trade names, and
customer relationships. Amortization charges for our intangible
assets can vary in frequency and amount due to the timing and
magnitude of acquisition transactions. We consider our operating
results without these charges when evaluating our core performance
due to the variability. Generally, the most significant impact to
inter-period comparability of our net income is in the first twelve
months following an acquisition.
- Special charges primarily consist of
restructuring costs incurred for employee terminations, including
severance and benefits, driven by modifications of business
strategy or business emphasis. Special charges may also include
expenses incurred related to potential acquisitions, excess
facility costs, and asset-related charges. Special charges are
incurred based on the particular facts and circumstances of
acquisition and restructuring decisions and can vary in size and
frequency. These charges are excluded as they are not ordinarily
included in our annual operating plan and related budget due to the
unpredictability of economic trends and the rapidly changing
technology and competitive environment in our industry. We
therefore exclude them when evaluating our managers' performance
internally.
- Equity plan-related compensation
expenses represent the fair value of all share-based payments to
employees, including grants of employee stock options and
restricted stock units, and purchases made as a result of the
employee stock purchase plan. We do not consider equity
plan-related compensation expense in evaluating our managers’
performance internally or our core operations in any given
period.
- Interest expense attributable to
amortization of the original issuance debt discount on convertible
debt is excluded. Management does not consider this charge as a
part of our core operating performance. We do not consider the
amortization of the original issuance debt discount on convertible
debt to be a direct cost of operations.
- Equity in earnings or losses of
unconsolidated entities represents our equity in the net income
(loss) of common stock investments accounted for under the equity
method. The carrying amounts of our investments are adjusted for
our share of earnings or losses of the investee. We report our
equity in the earnings or losses of investments in other income
(expense), net (with the exception of our investment in Frontline
as discussed below). The amounts are excluded from our non-GAAP
results as we do not control the results of operations for the
investments and we do not participate in regular and periodic
operating activities; therefore, management does not consider these
investments as a part of our core operating performance.
- The Company maintains a 50% interest in
Frontline, a joint venture. We report our equity in the earnings or
losses of Frontline within operating income. Although we do not
exert control, we actively participate in regular and periodic
activities such as budgeting, business planning, marketing and
direction of research and development projects. Accordingly, we do
not exclude our share of Frontline’s earnings or losses from our
non-GAAP results as management considers the joint venture to be
core to our operating performance.
- Income tax expense is adjusted by the
amount of additional tax expense or benefit that we would accrue if
we used non-GAAP results instead of GAAP results in the calculation
of our tax liability, taking into consideration our long-term tax
structure. We use a normalized effective tax rate of 17%, which
reflects the weighted average tax rate applicable under the various
jurisdictions in which we operate. This non-GAAP tax rate
eliminates the effects of non-recurring and period specific items
which are often attributable to acquisition decisions and can vary
in size and frequency and considers our U.S. loss carryforwards
that have not been previously benefited. This rate is subject to
change over time for various reasons, including changes in the
geographic business mix and changes in statutory tax rates. Our
GAAP tax rate for the three months ended April 30, 2013 is 381%
after consideration of period specific items. Without period
specific items of $0.4 million, our GAAP tax rate is 140%. Our full
fiscal year 2014 GAAP tax rate, inclusive of period specific items,
is projected to be 13%. The GAAP tax rate considers certain
mandatory and other non-scalable tax costs which may adversely or
beneficially affect our tax rate depending upon our level of
profitability in various jurisdictions.
- Our agreement with the owners of
noncontrolling interests in one of our subsidiaries gives them a
right to require us to purchase their interests at a future date
for a price based on a formula defined in the agreement. Under
GAAP, increases (or decreases to the extent they offset previous
increases) in the calculated redemption value of the noncontrolling
interests are recorded directly to retained earnings and therefore
do not affect net income. However, as required by GAAP, these
amounts are applied to increase or decrease the numerator in the
calculation of basic and diluted earnings per share. Management
does not consider fluctuations in the calculated redemption value
of noncontrolling interests to be relevant to our core operating
performance.
In certain instances our GAAP results of operations may not be
profitable when our corresponding non-GAAP results are profitable
or vice versa. The number of shares on which our non-GAAP earnings
per share is calculated may therefore differ from the GAAP
presentation due to the anti-dilutive effect of stock options,
restricted stock units, and employee stock purchase plan shares in
a loss situation.
Non-GAAP gross profit, operating income, net income, and
earnings per share are supplemental measures of our performance
that are not presented in accordance with GAAP. Moreover, they
should not be considered as an alternative to any performance
measure derived in accordance with GAAP, or as an alternative to
cash flow from operating activities as a measure of our liquidity.
We present non-GAAP gross profit, operating income, net income, and
earnings per share because we consider them to be important
supplemental measures of our operating performance and
profitability trends, and because we believe they give investors
useful information on period-to-period performance as evaluated by
management. Non-GAAP net income also facilitates comparison with
other companies in our industry, which use similar financial
measures to supplement their GAAP results. Non-GAAP net income has
limitations as an analytical tool, and therefore should not be
considered in isolation or as a substitute for analysis of our
results as reported under GAAP. In the future we expect to continue
to incur expenses similar to the non-GAAP adjustments described
above and exclusion of these items in our non-GAAP presentation
should not be construed as an inference that these costs are
unusual, infrequent or non-recurring. Some of the limitations in
relying on non-GAAP net income are:
- Amortization of intangible assets
represents the loss in value as the technology in our industry
evolves, is advanced, or is replaced over time. The expense
associated with this loss in value is not included in the non-GAAP
net income presentation and therefore does not reflect the full
economic effect of the ongoing cost of maintaining our current
technological position in our competitive industry, which is
addressed through our research and development program.
- We regularly evaluate our business to
determine whether any operations should be eliminated or curtailed
and engage in acquisition and assimilation activities as part of
our ongoing business. We therefore will continue to experience
special charges on a regular basis. These costs also directly
impact our available funds.
- Our stock incentive and stock purchase
plans are important components of our incentive compensation
arrangements and will be reflected as expenses in our GAAP
results.
- Our income tax expense will be
ultimately based on our GAAP taxable income and actual tax rates in
effect, which often differ significantly from the 17% rate assumed
in our non-GAAP presentation. In addition, if we have a GAAP loss
and non-GAAP net income, our non-GAAP results will not reflect any
projected GAAP tax benefits. Similarly, in the event we were to
have GAAP net income and a non-GAAP loss, our GAAP tax expense
would be replaced by a credit in our non-GAAP presentation.
- Other companies, including other
companies in our industry, calculate non-GAAP net income
differently than we do, limiting its usefulness as a comparative
measure.
About Mentor Graphics
Mentor Graphics Corporation 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 electronic, semiconductor and systems companies.
Established in 1981, the company reported revenues in the last
fiscal year of about $1,090 million. Corporate headquarters are
located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777.
World Wide Web site: http://www.mentor.com/.
(Mentor Graphics, FloTHERM and Capital are registered trademarks
and Sourcery is a trademark of Mentor Graphics Corporation. All
other company and/or product names are the trademarks and/or
registered trademarks of their respective owners.)
Statements in this press release regarding the company’s
guidance for future periods constitute “forward-looking” statements
based on current expectations within the meaning of the Securities
Exchange Act of 1934. 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) weakness in the United States or international
economies; (ii) the company’s ability to successfully offer
products and services that compete in the highly competitive EDA
industry, including the risk of obsolescence for our hardware
products; (iii) product bundling or discounting of products
and services by competitors, which could force the company to lower
its prices or offer other more favorable terms to customers; (iv)
effects of the volatility of foreign currency fluctuations on the
company’s business and operating results; (v) changes in accounting
or reporting rules or interpretations; (vi) the impact of tax
audits by the IRS or other taxing authorities, or changes in the
tax laws, regulations or enforcement practices where the company
does business; (vii) effects of unanticipated shifts in
product mix on gross margin; and (viii) effects of customer
seasonal purchasing patterns and the timing of significant orders
which may negatively or positively impact the company’s quarterly
results of operations; all as may be discussed in more detail under
the heading “Risk Factors” in the company’s most recent Form 10-K
or Form 10-Q. Given these uncertainties, prospective investors are
cautioned not to place undue reliance on such forward-looking
statements. In addition, statements regarding guidance do not
reflect potential impacts of mergers or acquisitions that have not
been announced or closed as of the time the statements are made.
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.
MENTOR GRAPHICS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share data)
Three Months Ended April 30, 2013 2012
Revenues: System and software $ 123,284 $ 149,356 Service
and support 103,231 98,562 Total
revenues 226,515 247,918
Cost of
revenues: (1) System and software 8,899 14,790 Service and
support 30,075 28,414 Amortization of purchased technology
1,207 2,179 Total cost of revenues
40,181 45,383 Gross profit 186,334
202,535
Operating expenses: Research
and development (2) 79,717 71,046 Marketing and selling (3) 79,107
79,752 General and administration (4) 18,277 16,649 Equity in
earnings of Frontline (5) (397 ) (587 ) Amortization of intangible
assets (6) 1,654 1,706 Special charges (7) 2,083
1,147 Total operating expenses 180,441
169,713
Operating income 5,893 32,822 Other
income (expense), net (8) (959 ) 83 Interest expense (9)
(4,785 ) (4,594 ) Income before income tax 149 28,311 Income
tax expense (10) 568 781 Net income
(loss) (419 ) 27,530 Less: Loss attributable to noncontrolling
interest (11) (624 ) (652 )
Net income attributable to Mentor Graphics
shareholders
$ 205 $ 28,182
Net income per share attributable to
Mentor Graphics shareholders:
Basic (a) $ 0.01 $ 0.26 Diluted (a) $ 0.01 $
0.25 Weighted average number of shares outstanding: Basic
112,711 109,907 Diluted 115,751
113,243 (a) We have increased the
numerator of our basic and diluted earnings per share calculation
by $468 for the three months ended April 30, 2013 for the
adjustment to decrease the noncontrolling interest with redemption
feature to its calculated redemption value at April 30, 2013,
recorded directly to retained earnings. Refer to following
page for a description of footnotes.
MENTOR GRAPHICS
CORPORATION
FOOTNOTES TO
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In thousands)
Listed below are the items included in net
income that management excludes in computing the non-GAAP financial
measures referred to in the text of this press release. Items are
further described under "Discussion of Non-GAAP Financial
Measures."
Three Months Ended April 30, 2013
2012 (1) Cost of revenues: Equity plan-related
compensation $ 460 $ 319 Amortization of purchased technology
1,207 2,179 $ 1,667 $ 2,498
(2) Research and development: Equity
plan-related compensation $ 2,610 $ 2,117
(3) Marketing and selling: Equity plan-related compensation
$ 1,882 $ 1,549
(4) General and
administration: Equity plan-related compensation $ 1,614
$ 1,162
(5) Equity in earnings of Frontline:
Amortization of purchased technology and
other identified intangible assets
$ 737 $ 1,242
(6) Amortization of
intangible assets: Amortization of other identified intangible
assets $ 1,654 $ 1,706
(7) Special
charges: Rebalance, restructuring, and other costs $ 2,083
$ 1,147
(8) Other income (expense),
net: Net income of unconsolidated entities $ (51 ) $ (13 )
(9) Interest expense: Amortization of original
issuance debt discount $ 1,391 $ 1,295
(10)
Income tax expense: Non-GAAP income tax effects $ (1,767 ) $
(6,191 )
(11) Loss attributable to noncontrolling
interest: Amortization of intangible assets, equity-plan
related compensation, and income tax effects $ (393 ) $ (269 )
MENTOR GRAPHICS
CORPORATION
UNAUDITED
RECONCILIATION OF NON-GAAP ADJUSTMENTS
(In thousands, except earnings per share data)
Three Months Ended April 30, 2013 2012 GAAP
net income attributable to Mentor Graphics shareholders $ 205 $
28,182 Non-GAAP adjustments: Equity plan-related compensation: (1)
Cost of revenues 460 319 Research and development 2,610 2,117
Marketing and selling 1,882 1,549 General and administration 1,614
1,162 Acquisition - related items: Amortization of purchased assets
Cost of revenues (2) 1,207 2,179 Frontline purchased technology and
intangible assets (3) 737 1,242 Amortization of intangible assets
(4) 1,654 1,706 Special charges (5) 2,083 1,147 Other income
(expense), net (6) (51 ) (13 ) Interest expense (7) 1,391 1,295
Non-GAAP income tax effects (8) (1,767 ) (6,191 ) Noncontrolling
interest (9) (393 ) (269 ) Total of non-GAAP
adjustments 11,427 6,243 Non-GAAP net
income attributable to Mentor Graphics shareholders $ 11,632
$ 34,425 GAAP and Non-GAAP weighted average shares
(diluted) 115,751 113,243 Net
income per share attributable to Mentor Graphics shareholders: GAAP
(diluted) $ 0.01 $ 0.25 Noncontrolling interest adjustment (10)
(0.01 ) - Non-GAAP adjustments detailed above 0.10
0.05 Non-GAAP (diluted) $ 0.10 $ 0.30
(1) Equity plan-related compensation expense is the
fair value of all share-based payments to employees for stock
options and restricted stock units, and purchases made as a result
of the employee stock purchase plans.
(2) Amount represents
amortization of purchased technology resulting from acquisitions.
Purchased intangible assets are amortized over two to five years.
(3) Amount represents amortization of purchased technology
and other identified intangible assets identified as part of the
fair value of the Frontline P.C.B. Solutions Limited Partnership
(Frontline) investment. The purchased technology will be amortized
over three years, other identified intangible assets will be
amortized over three to four years, and are reflected in the income
statement in the equity in earnings of Frontline. This expense is
the same type as being adjusted for in note (2) above and (4)
below.
(4) Other identified intangible assets are amortized
to operating expense over two to five years. Other identified
intangible assets include trade names, customer relationships, and
backlog which are the result of acquisition transactions.
(5) Three months ended April 30, 2013: Special charges
consist of (i) $2,079 of costs incurred for employee rebalances
which includes severance benefits, notice pay, and outplacement
services and (ii) $4 in other adjustments. Three months ended April
30, 2012: Special charges consist of (i) $988 of costs incurred for
employee rebalances which includes severance benefits, notice pay,
and outplacement services and (ii) $159 in other adjustments.
(6) Amount represents income on investment accounted for
under the equity method of accounting.
(7) Amount represents
the amortization of original issuance debt discount.
(8)
Non-GAAP income tax expense adjustment reflects the application of
our assumed normalized effective 17% tax rate, instead of our GAAP
tax rate, to our non-GAAP pre-tax income.
(9) Adjustment for
the impact of amortization of intangible assets, equity
plan-related compensation, and income tax expense on noncontrolling
interest.
(10) The numerator of our GAAP basic and diluted
earnings per share calculation was increased by $468 for the three
months ended April 30, 2013 for the adjustment to decrease the
noncontrolling interest with redemption feature to its calculated
redemption value at April 30, 2013, recorded directly to retained
earnings.
MENTOR GRAPHICS
CORPORATION
UNAUDITED
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES
(In thousands, except percentages)
Three
Months Ended April 30, 2013 2012 GAAP gross
profit $ 186,334 $ 202,535 Reconciling items to non-GAAP gross
profit: Equity plan-related compensation 460 319 Amortization of
purchased technology 1,207 2,179
Non-GAAP gross profit $ 188,001 $ 205,033
Three Months Ended April 30, 2013 2012
GAAP gross profit as a percent of total revenues 82.3 % 81.7 %
Non-GAAP adjustments detailed above 0.7 % 1.0 %
Non-GAAP gross profit as a percent of total revenues 83.0 %
82.7 %
Three Months Ended April 30,
2013 2012 GAAP operating expenses $ 180,441 $ 169,713
Reconciling items to non-GAAP operating expenses: Equity
plan-related compensation (6,106 ) (4,828 )
Amortization of Frontline purchased
technology and other identified intangible assets
(737 ) (1,242 ) Amortization of other identified intangible assets
(1,654 ) (1,706 ) Special charges (2,083 ) (1,147 )
Non-GAAP operating expenses $ 169,861 $ 160,790
Three Months Ended April 30, 2013
2012 GAAP operating income $ 5,893 $ 32,822 Reconciling
items to non-GAAP operating income: Equity plan-related
compensation 6,566 5,147 Amortization of purchased technology 1,207
2,179
Amortization of Frontline purchased
technology and other identified intangible assets
737 1,242 Amortization of other identified intangible assets 1,654
1,706 Special Charges 2,083 1,147
Non-GAAP operating income $ 18,140 $ 44,243
Three Months Ended April 30, 2013 2012
GAAP operating income as a percent of total revenues 2.6 % 13.2 %
Non-GAAP adjustments detailed above 5.4 % 4.6 %
Non-GAAP operating income as a percent of total revenues 8.0
% 17.8 %
Three Months Ended April 30,
2013 2012 GAAP other income (expense), net and
interest expense $ (5,744 ) $ (4,511 )
Reconciling items to non-GAAP other income
(expense), net and interest expense:
Equity in earnings of unconsolidated entities (51 ) (13 )
Amortization of original issuance debt discount 1,391
1,295 Non-GAAP other income (expense), net and
interest expense $ (4,404 ) $ (3,229 )
MENTOR GRAPHICS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, January
31, 2013 2013 Assets Current
assets: Cash, cash equivalents and short-term investments $
206,213 $ 223,783 Trade accounts receivable, net 125,969 178,351
Term receivables, short-term 241,420 233,894 Prepaid expenses and
other 61,785 53,951 Deferred income taxes 9,538
14,973 Total current assets 644,925 704,952
Property,
plant, and equipment, net 160,192 162,402
Term receivables,
long-term 228,425 250,497
Goodwill and intangible assets,
net 557,432 557,770
Other assets 72,298
69,663 Total assets $ 1,663,272 $ 1,745,284
Liabilities and Stockholders' Equity Current
liabilities: Short-term borrowings $ 1,060 $ 5,964 Accounts
payable 14,753 20,906 Income taxes payable 4,238 9,180 Accrued
payroll and related liabilities 56,502 101,354 Accrued and other
liabilities 36,729 40,662 Deferred revenue 234,041
233,759 Total current liabilities 347,323 411,825
Long-term notes payable 219,937 218,546
Deferred revenue,
long-term 16,064 17,755
Other long-term liabilities
48,406 50,981 Total liabilities 631,730
699,107
Noncontrolling interest with redemption
feature 11,649 12,698
Stockholders' equity:
Common stock 807,080 810,902 Retained earnings 192,787 197,178
Accumulated other comprehensive income 20,026 25,399
Total stockholders' equity 1,019,893 1,033,479
Total liabilities and stockholders' equity $ 1,663,272 $ 1,745,284
MENTOR GRAPHICS
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL
INFORMATION
(In thousands, except days sales outstanding)
Three Months Ended April 30, 2013 2012
Operating activities Net income (loss) $ (419 ) $ 27,530
Depreciation and amortization 13,344 13,813 Other adjustments to
reconcile: Operating cash 10,810 6,700 Changes in working capital
(11,608 ) (41,898 ) Net cash provided by
operating activities 12,127 6,145
Investing
activities Net cash used in investing activities (15,158 )
(12,057 )
Financing activities Net cash used in
financing activities (21,408 ) (4,234 ) Effect of exchange
rate changes on cash and cash equivalents (964 )
(1,542 ) Net change in cash and cash equivalents (25,403 )
(11,688 ) Cash and cash equivalents at beginning of period
223,783 146,499 Cash and cash
equivalents at end of period (a) $ 198,380 $ 134,811
Other data: Capital expenditures $
4,410 $ 11,604 Days sales outstanding 146
129 (a) The condensed
consolidated balance sheet at April 30, 2013 includes $7,833 of
short-term investments in the "Cash, cash equivalents, and
short-term investments" line item. $7,833 should be deducted from
that line item to reconcile to the amount of "Cash and cash
equivalents at end of period" presented in this statement for the
three months ended April 30, 2013.
MENTOR GRAPHICS
CORPORATION
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP
EARNINGS PER
SHARE
The following table reconciles management's
estimates of the specific items excluded from GAAP in the
calculation of estimated non-GAAP net income per share for Q2'14
and fiscal year 2014.
Estimated Estimated
Q2'14 FY'14 Diluted GAAP net income per share $ 0.14
$ 1.33 Non-GAAP Adjustments: Amortization of purchased intangible
assets (1) - 0.03 Amortization of other identified intangible
assets (2) 0.02 0.06 Equity plan-related compensation (3) 0.06 0.25
Other income (expense), net and interest expense (4) 0.01 0.05
Non-GAAP income tax effects (5) (0.06 ) (0.18 ) Non-controlling
interest (6) - (0.01 ) Special Charges (7) -
0.02 Non-GAAP net income per share $ 0.17 $ 1.55
(1) Excludes amortization of purchased
intangible assets resulting from acquisitions. Purchased intangible
assets are amortized over two to five years.
(2) Excludes
amortization of other identified intangible assets including trade
names, customer relationships, and backlog resulting from
acquisition transactions. Other identified intangible assets are
amortized over two to five years. This line item also excludes
amortization of purchased intangible assets identified as part of
the fair value of the Frontline P.C.B. Solutions Limited
Partnership investment. The purchased technology will be amortized
over three years and other identified intangible assets will be
amortized over three to four years.
(3) Excludes equity
plan-related compensation expense for the fair value of all
share-based payments to employees for stock options and restricted
stock units, and purchases made as a result of the employee stock
purchase plans.
(4) Excludes income (loss) on investment
accounted for under the equity method of accounting, and
amortization of original issuance debt discount.
(5)
Non-GAAP income tax expense adjustment reflects the application of
our assumed normalized effective 17% tax rate, instead of our GAAP
tax rate, to our non-GAAP pre-tax income.
(6) Adjustment for
the impact of amortization of intangible assets, equity
plan-related compensation, and income tax expense on noncontrolling
interest.
(7) Excludes special charges consisting primarily
of costs incurred for employee rebalances (which includes severance
benefits, notice pay and outplacement services), facility closures,
and acquisition costs.
MENTOR GRAPHICS
CORPORATION
UNAUDITED
SUPPLEMENTAL BOOKINGS AND REVENUE INFORMATION
(Rounded to nearest 5%)
2014
2013 2012 Product Category Bookings (a)
Q1 Q1 Q2 Q3
Q4 Year Q1 Q2
Q3 Q4 Year IC DESIGN TO SILICON
60% 35% 25% 30% 35% 30% 20% 25% 60% 40% 40% SCALABLE VERIFICATION
15% 15% 30% 20% 25% 25% 35% 30% 15% 35% 30% INTEGRATED SYSTEMS
DESIGN 10% 25% 25% 25% 25% 25% 25% 25% 15% 15% 15% NEW &
EMERGING MARKETS 5% 5% 10% 15% 5% 10% 5% 10% 5% 5% 5% SERVICES /
OTHER 10% 20% 10% 10% 10% 10% 15%
10% 5% 5% 10%
Total 100% 100%
100% 100% 100% 100% 100% 100%
100% 100% 100%
2014 2013
2012 Product Category Revenue (b) Q1 Q1
Q2 Q3 Q4
Year Q1 Q2 Q3
Q4 Year IC DESIGN TO SILICON 35% 40% 35% 25%
35% 35% 40% 25% 40% 45% 40% SCALABLE VERIFICATION 20% 25% 25% 30%
30% 25% 25% 30% 25% 25% 25% INTEGRATED SYSTEMS DESIGN 30% 20% 25%
25% 20% 25% 20% 25% 25% 20% 20% NEW & EMERGING MARKETS 5% 5% 5%
10% 5% 5% 5% 10% 5% 5% 5% SERVICES / OTHER 10% 10% 10%
10% 10% 10% 10% 10% 5% 5%
10%
Total 100% 100% 100% 100%
100% 100% 100% 100% 100% 100%
100%
2014 2013 2012 Bookings by
Geography Q1 Q1 Q2 Q3
Q4 Year Q1 Q2
Q3 Q4 Year North America
35% 35% 40% 50% 35% 40% 45% 45% 40% 50% 45% Europe 10% 20% 35% 20%
30% 25% 20% 30% 15% 25% 20% Japan 10% 10% 5% 5% 10% 10% 15% 5% 5%
10% 10% Pac Rim 45% 35% 20% 25% 25% 25%
20% 20% 40% 15% 25%
Total 100% 100% 100% 100%
100% 100% 100% 100% 100% 100%
100%
2014 2013 2012 Revenue
by Geography Q1 Q1 Q2
Q3 Q4 Year Q1
Q2 Q3 Q4 Year
North America 45% 50% 45% 50% 40% 45% 40% 50% 45% 35% 40% Europe
20% 20% 20% 20% 30% 25% 25% 20% 25% 25% 25% Japan 10% 10% 15% 10%
10% 10% 15% 10% 10% 5% 10% Pac Rim 25% 20% 20% 20%
20% 20% 20% 20% 20% 35%
25%
Total 100% 100% 100% 100% 100%
100% 100% 100% 100% 100% 100%
2014 2013 2012 Bookings by Business
Model (c) Q1 Q1 Q2 Q3
Q4 Year Q1 Q2
Q3 Q4 Year Perpetual 15%
25% 20% 20% 15% 20% 40% 20% 15% 25% 20% Term Ratable 10% 25% 15%
10% 5% 10% 20% 10% 5% 5% 10% Term Up Front 75% 50% 65%
70% 80% 70% 40% 70% 80%
70% 70%
Total 100% 100% 100% 100%
100% 100% 100% 100% 100% 100%
100%
2014 2013 2012 Revenue
by Business Model (c) Q1 Q1 Q2
Q3 Q4 Year Q1
Q2 Q3 Q4
Year Perpetual 20% 20% 25% 25% 15% 20% 30% 25% 15% 15% 20%
Term Ratable 10% 10% 10% 10% 5% 10% 10% 10% 10% 5% 10% Term Up
Front 70% 70% 65% 65% 80% 70% 60%
65% 75% 80% 70%
Total 100% 100%
100% 100% 100% 100% 100% 100%
100% 100% 100% (a) Product
Category Bookings excludes support bookings for all sub-flow
categories. (b) Product Category Revenue includes support revenue
for each sub-flow category as appropriate. (c) Bookings and Revenue
by Business Model are System and Software only (excludes finance
fee).
Mentor Graphics Corp. (NASDAQ:MENT)
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Mentor Graphics Corp. (NASDAQ:MENT)
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부터 7월(7) 2023 으로 7월(7) 2024