WILSONVILLE, OR -- Mentor Graphics reported second-quarter net loss of $14.3 million, a 33% improvement from a year ago.

For the second quarter ended July 31, the electronics design software company reported revenues of $187.9 million, up 2.9% year-over-year. The results beat company guidance by $8 million.

During the quarter, annualized revenue from renewal contracts in Mentor's top 10 accounts grew 45% sequentially, up from 25% each of the previous two quarters. Consulting and training revenues were up 30% and 70% respectively, year-over-year, aided by $2.5 million in services revenue from the Valor acquisition. Revenue from transportation products nearly doubled year-over-year, and bookings nearly tripled, said Dr. Wally Rhines, CEO and chairman. The gross margin was 83%.

Printed circuit board design software sales made up 30% of the quarter's revenues, or $56.4 million, up from $45.7 million sequentially.

The company book-to-bill and backlogs set second-quarter records. Bookings were up 2% overall, as product were basically flat and services rose 10%. Integrated systems design, which includes Valor PCB manufacturing products, was up 10%. New and emerging bookings were up 50%, the company said.

"Semiconductor markets continue to improve, with revenues at an all-time high, and industry analysts forecasting continued growth,” Rhines said. “Our solid results across all core EDA product lines reflected that."

Mentor did not break out I have to believe that it is picking up some just based on the reports of some companies. The dynamic we have talked about that we have seen in recoveries from

Mentor raised its third-quarter guidance to $220 million, and pegged its fourth-quarter sales at $290 million, saying that its acquisitions of Flomerics and Valor were paying off. For fiscal 2011, the company now expects revenues of approximately $880 million, up $10 million from previous guidance.

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