WILSONVILLE, OR – Mentor Graphics reported fiscal third-quarter 2010 revenues of $189.2 million, up 2.3% year-over-year.

The GAAP net loss was 27 million, down from a loss of 78.9 million a year ago.

“During the quarter, we saw positive signs of recovery in the semiconductor market with semiconductor unit shipments and revenue, as well as foundry revenue and utilization, up sharply,” said Wally Rhines, CEO and chairman.

“Embedded software and cabling solutions are both up for the quarter. Strong results from our design-to-silicon platform, including Calibre, Olympus-SoC place and route, and Tessent silicon test products, and a recovery in our emulation business also helped drive results.”

“Despite the continuing challenges of the market, we saw annualized contract values of renewals in our top 10 contracts increase 5% in the quarter,” said president Gregory K. Hinckley.

In October, the firm signed an agreement with Valor Computerized Systems, provider of PCB design manufacturing software solutions.

The firm expects fourth-quarter revenue of about $230 million.