Mentor Graphics Corp. (MENT, Financial) filed Quarterly Report for the period ended 2009-10-31.
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 $814.6 million; its shares were traded at around $8.3 with a P/E ratio of 39.5 and P/S ratio of 1. Mentor Graphics Corp. had an annual average earning growth of 6.1% over the past 5 years.
Amortization of purchased technology to System and software cost of revenues was $3.1 million for the three months ended October 31, 2009 and $9.0 million for the nine months ended October 31, 2009 compared to $3.8 million for the three months ended October 31, 2008 and $9.0 million for the nine months ended October 31, 2008. We amortize purchased technology costs over two to five years. The decrease in amortization for the three months ended October 31, 2009 was primarily due to certain purchased technology being fully amortized during fiscal 2009.
Service and support gross margin percent increased for the three months ended October 31, 2009 compared to the three months ended October 31, 2008 primarily due to cost reductions of $2.9 million, including reductions in outside service costs and headcount-related costs. These improvements to costs were partially offset by the impact of lower revenues of $4.7 million.
Service and support gross margin percent increased for the nine months ended October 31, 2009 compared to the nine months ended October 31, 2008 primarily due to cost reductions of $10.6 million, including reductions in outside service costs, headcount-related costs, travel costs, and favorable foreign currency movements. These improvements to costs were partially offset by the impact of lower revenues of $16.5 million.
Research and development expenses decreased by $0.9 million for the three months ended October 31, 2009 compared to the three months ended October 31, 2008, and by $6.4 million for the nine months ended October 31, 2009 compared to the nine months ended October 31, 2008. The components of these decreases are summarized as follows (in millions):
Read the The complete ReportMENT is in the portfolios of Private Capital of Private Capital Management, Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
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 $814.6 million; its shares were traded at around $8.3 with a P/E ratio of 39.5 and P/S ratio of 1. Mentor Graphics Corp. had an annual average earning growth of 6.1% over the past 5 years.
Highlight of Business Operations:
Foreign currency had an overall favorable impact of $2.2 million on our revenues during the three months ended October 31, 2009 compared to the three months ended October 31, 2008, primarily as a result of the strengthening of the Japanese yen against the U.S. dollar, partially offset by the weakening of the euro and British pound against the U.S. dollar. Foreign currency had an overall negative impact of $1.2 million on our revenues during the nine months ended October 31, 2009 compared to the nine months ended October 31, 2008, primarily as a result of a weakening of the euro and British pound against the U.S. dollar, partially offset by the strengthening of the Japanese yen against the U.S. dollar.Amortization of purchased technology to System and software cost of revenues was $3.1 million for the three months ended October 31, 2009 and $9.0 million for the nine months ended October 31, 2009 compared to $3.8 million for the three months ended October 31, 2008 and $9.0 million for the nine months ended October 31, 2008. We amortize purchased technology costs over two to five years. The decrease in amortization for the three months ended October 31, 2009 was primarily due to certain purchased technology being fully amortized during fiscal 2009.
Service and support gross margin percent increased for the three months ended October 31, 2009 compared to the three months ended October 31, 2008 primarily due to cost reductions of $2.9 million, including reductions in outside service costs and headcount-related costs. These improvements to costs were partially offset by the impact of lower revenues of $4.7 million.
Service and support gross margin percent increased for the nine months ended October 31, 2009 compared to the nine months ended October 31, 2008 primarily due to cost reductions of $10.6 million, including reductions in outside service costs, headcount-related costs, travel costs, and favorable foreign currency movements. These improvements to costs were partially offset by the impact of lower revenues of $16.5 million.
Research and development expenses decreased by $0.9 million for the three months ended October 31, 2009 compared to the three months ended October 31, 2008, and by $6.4 million for the nine months ended October 31, 2009 compared to the nine months ended October 31, 2008. The components of these decreases are summarized as follows (in millions):
Read the The complete ReportMENT is in the portfolios of Private Capital of Private Capital Management, Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
