Printed Circuit Design & Fab Online Magazine - Mentor's Q3 Sales Drop 2.2% YOY

WILSONVILLE, OR – Mentor Graphics reported third-quarter revenue fell 2.2% to $186.3 million. The company swung to a net loss of $9.2 million, from earnings of $2.5 million last year.

The company reports that compared to the prior year, bookings were up 10% overall. Year-on-year bookings for the Pacific Rim were up 35%, up 25% for North America, 5% for Japan, and down 15% for Europe.

Contract renewals among the company's 10 largest orders increased 50% over the corresponding prior contract.

In a press statement, Mentor reaffirmed its guidance for fiscal 2008 and 2009. President Gregory K. Hinckley said, "We see mixed economic signals. We see positive forward indicators like venture company funding to fabless semiconductor startups up sharply in the third quarter to the highest level since 2001, our consulting bookings up 50%, training bookings up 95% and new customer logos up 10%. Nonetheless, our actual results highly depend upon the condition of the U.S. economy where risks in recent weeks seem to be growing. If the U.S. economy slows in the fourth quarter, our ability to meet guidance will be challenged."

The company guided for fiscal 2008 revenue of $860 million and fiscal 2009 revenue of $920 million.