Mentor Graphics 2nd-quarter loss narrows, helped by growth in service and support revenue

Mentor Graphics 2Q loss narrows

WILSONVILLE, Ore. — Mentor Graphics Corp., which provides electronic hardware and software design products and services, said Thursday that its fiscal second-quarter loss narrowed as service and support revenue grew. The results and its outlook topped analyst expectations.

For the May-July quarter, the company reported a loss of $14.2 million, or 13 cents per share, compared with a loss of $21.3 million, or 22 cents per share, in the year-ago quarter.

When excluding one-time items, the company earned a penny per share. Analysts polled by Thomson Reuters expected an adjusted loss of 4 cents per share.

Revenue rose 3 percent to $187.9 million, helped by a jump in service and support revenue. Analysts expected $180.5 million in revenue.

For the current quarter, Mentor predicted revenue of $220 million on a profit of 8 cents per share, or 15 cents per share on an adjusted basis. Analysts are looking for $212.2 million in revenue and an adjusted profit of 11 cents per share.

For the fiscal year, Mentor expects $880 million in revenue and a profit of 20 cents per share, or 65 cents per share on an adjusted basis. Analysts expect $867.7 million in revenue and an adjusted profit of 64 cents per share.