Mentor Graphics Reports Fiscal Second Quarter Results
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MENTOR GRAPHICS CORPORATION
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UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
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(In thousands, except earnings per share data)
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Three Months Ended July 31,
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Six Months Ended July 31,
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2014
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2013
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2014
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2013
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Revenues:
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System and software
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$
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149,480
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$
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150,203
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$
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297,709
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$
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273,487
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Service and support
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110,753
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103,013
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214,675
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206,244
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Total revenues
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260,233
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253,216
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512,384
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479,731
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Cost of revenues: (1)
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System and software
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16,185
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15,236
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43,156
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24,135
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Service and support
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30,903
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28,909
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60,014
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58,984
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Amortization of purchased technology
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1,841
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712
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3,202
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1,919
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Total cost of revenues
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48,929
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44,857
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106,372
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85,038
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Gross profit
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211,304
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208,359
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406,012
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394,693
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Operating expenses:
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Research and development (2)
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87,542
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80,307
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171,993
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160,024
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Marketing and selling (3)
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82,305
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79,811
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166,939
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158,918
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General and administration (4)
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19,473
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17,198
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37,155
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33,535
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Equity in earnings of Frontline (5)
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(2,062
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(950
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(3,441
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(1,347
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Amortization of intangible assets (6)
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2,026
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1,556
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3,776
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3,210
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Special charges (7)
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5,108
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3,859
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11,034
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7,882
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Total operating expenses
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194,392
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181,781
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387,456
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362,222
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Operating income
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16,912
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26,578
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18,556
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32,471
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Other income (expense), net (8)
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(104
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(272
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(362
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(1,231
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Interest expense (9)
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(4,807
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(4,897
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(9,392
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(9,682
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Income before income tax
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12,001
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21,409
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8,802
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21,558
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Income tax benefit (10)
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(1,768
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(2,338
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(1,942
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(1,770
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Net income
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13,769
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23,747
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10,744
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23,328
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Less: Loss attributable to noncontrolling interest (11)
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(403
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(235
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(877
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(859
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Net income attributable to Mentor Graphics
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shareholders
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$
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14,172
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$
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23,982
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$
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11,621
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$
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24,187
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Net income per share attributable to Mentor Graphics
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shareholders:
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Basic a
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$
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0.13
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$
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0.19
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$
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0.12
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$
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0.20
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Diluted a
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$
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0.13
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$
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0.19
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$
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0.11
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$
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0.19
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Weighted average number of shares outstanding:
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Basic
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113,868
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112,988
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114,396
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112,851
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Diluted
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116,551
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116,295
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116,960
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116,014
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a We have increased (decreased) the numerator of our basic
and diluted earnings per share calculation for the adjustment of the
noncontrolling interest with redemption feature to its calculated
redemption value, recorded directly to retained earnings, as follows:
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$
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895
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$
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(2,349
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$
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1,562
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$
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(1,881
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