Mentor Graphics Corp. (MENT) Files Quarterly Report for the Period Ended on 2008-10-31

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Dec 15, 2008
Mentor Graphics Corp. (MENT, Financial) filed Quarterly Report for the period ended 2008-10-31.

MENTOR GRAPHICS CORP. designs manufactures markets and supports electronic design automation (EDA) software for the integrated circuit and systems design markets. The company provides a broad range of EDA tools developed either by the Company or together with third parties to support the entire electronic design process. The Company's software products enable engineers and designers to design analyze place and route and test custom (ASICs) printed circuit boards multichip modules and other electronic systems and subsystems. Mentor Graphics Corp. has a market cap of $549.53 million; its shares were traded at around $5.14 with a P/E ratio of 19.83 and P/S ratio of 0.62. Mentor Graphics Corp. had an annual average earning growth of 6.1% over the past 5 years.


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We perform an analysis on our goodwill balances to test for impairment on an annual basis or whenever events occur that may indicate impairment possibly exists. Goodwill is deemed to be impaired if the carrying value of a reporting unit exceeds its estimated fair value. Long-lived assets and amortizable intangible assets are tested for impairment when events or circumstances arise indicating that their carrying value may not be recoverable. An impairment charge is only deemed to have occurred if the sum of the forecasted undiscounted future cash flows related to the asset are less than the carrying value of the intangible asset we are testing for impairment. If the forecasted cash flows are less than the carrying value, then we must write down the carrying value to its estimated fair value. As of October 31, 2008, we had a goodwill balance of $440 million and intangible assets of $46 million. Going forward, we will continue to review our goodwill and other intangible

As of October 31, 2008, we had $241 million of outstanding indebtedness, which includes $36 million of Floating Rate Convertible Subordinated Debentures (Floating Rate Debentures) due 2023, $165 million of 6.25% Convertible Subordinated Debentures (6.25% Debentures) due 2026, and $40 million in short-term borrowings. This level of indebtedness among other things could:


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