Printed Circuit Design & Fab Online Magazine - Mentor's Q4 Profits Down 15%

WILSONVILLE, OR – Mentor Graphics Corp. reported fiscal fourth-quarter revenue dropped nearly 15% to $242.6 million, compared to $284.8 million year-over-year. System and software revenues saw a decline of $157.57 million, down from $201.14 million. Service and support revenue rose to $85.07 million, compared to $83.68 million last year.

For the quarter, profits slipped to $31.54 million, compared to $34.89 million in 2007, on a sharp decline in new customers. Non-GAAP income fell to $32.37 million, or $0.35 per share, from $66.42 million, $0.72 per share, in 2007.

First-quarter revenues are forecasted between $200 million and $210 million, and the company is implementing cost-saving measures.

“Given the environment, the company has further strengthened its existing cost control efforts with new reductions in compensation and travel, targeted personnel reductions and strict hiring limits. We will continue to assess our cost envelope as the year unfolds,” said Gregory K. Hinckley, president.