WILSONVILLE, OR -- Mentor Graphics Corp. posted a quarterly loss, citing economic uncertainty and the delay in contract renewal by customers.

Revenue for the fiscal third quarter ending October 31, 2008 was $184.9 million, down from $190.5 million for the same period in 2007. The GAAP loss was $0.85 per share.

"The current economic outlook has delayed the typical contract renewal pattern we had been seeing. Customers are now more typically waiting until the quarter of contract expiration to renew. One of the consequences of this pattern is that we see greater strength going into fiscal 2010," said Walden C. Rhines, chairman and CEO of Mentor Graphics. "Even in this tougher environment, renewals in our top ten contracts in the quarter increased 35% over their previous contract value primarily due to adoption of new capabilities, like design for manufacturing, that were just emerging three years ago when the contracts were created."