WILSONVILLE, OR -- Mentor Graphics today announced third-quarter revenues of $322.5 million, up 11% from a year ago.

For the period ended Oct. 31, the EDA software company reported a record third-quarter book-to-bill, with bookings up more than 50% from the previous year.

Annualized fee growth for its top 10 renewals was 60% overall, with fees from systems customers growing over 160% and those from IC customers growing 35%. GAAP gross margin was 84.1%, while non-GAAP gross margin was up 340 basis points to 84.9%, Mentor's highest for a third quarter in the past five years. GAAP operating margin was 18%.

“Mentor’s third quarter results solidly exceeded revenue and earnings-per-share guidance,” said Walden C. Rhines, chairman and CEO. “Book to bill was significantly above one with strength in both semiconductor and system accounts. Growth of the annual run-rate in our top 10 customers was a strong 60%.

The big news, of course, was the Nov. 14 announcement that Siemens would acquire Mentor. "Joining forces with Siemens will enable Mentor to achieve the next level of success for our customers and employees,” Rhines added. As a result of the acquisition announcement, the company will not provide an outlook for future financial results and is withdrawing all previously issued financial guidance.

During the quarter Mentor cquired Galaxy Semiconductor, a provider of test data analysis and defect reduction software for the semiconductor industry.

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