Mentor Graphics posts better-than-expected adjusted 2Q profit, shares jump 11 percent
By APFriday, August 21, 2009
Mentor Graphics 2Q results top estimates
WILSONVILLE, Ore. — Mentor Graphics Corp., which makes electronics-testing software, on Thursday reported a wider second-quarter loss but adjusted results and sales topped Wall Street expectations by a wide margin.
Shares jumped $1.08, or 13.6 percent, to $9 in extended trading, having closed earlier up 14 cents at $7.92 before the earnings report.
Chairman and CEO Walden C. Rhines said the company saw sequential gains in consulting and distributor bookings, “both signs we take as indicators of an improving customer environment.”
The company lost $21.3 million, or 22 cents per share, in the quarter ended July 31, compared with a loss of $18 million, or 19 cents per share, year ago.
But excluding items related to research and development, interest expenses and cost of revenue, it would have earned 2 cents per share, compared with a loss of 2 cents per share a year earlier.
Revenue totaled $182.6 million, nearly flat with $182.4 million a year ago.
Analysts surveyed by Thomson Reuters expected the company to lose 10 cents per share on just $165.8 million in sales.
