WILSONVILLE, OR -- Mentor Graphics reported fiscal first-quarter sales fell 6.8% year-over-year to $180.6 million.

The net loss of the period end April 30 almost doubled to $23 million.

“While the quarter’s bookings were lower than last year due to the concentration of scheduled renewals in the second half of this year, the renewals that did occur in the first quarter were very strong, growing 25% from their prior contract values for the renewals within our top 10 contracts,” said CEO and chairman Wally Rhines in a press release. “Leading indicators that we have historically tracked were also very positive: support reinstatements grew 70%; our base business, orders less than $1 million typically from smaller customers, grew 20% over the year ago quarter; and consulting and training bookings grew 25% over last year.”

“Despite two sizable acquisitions in the last year, our operating expense is still down on an absolute basis year on year. We expect our continued strong emphasis on cost controls, as well as an improving foreign exchange environment, particularly the euro, positions us well for the year,” said president Greg Hinckley. 

Mentor guided for July quarter sales of $180 million and full fiscal 2011 revenues of $870 million.

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