By Anne Steele
Mentor Graphics Corp., which has agreed to sell itself to Siemens AG, posted much better-than-anticipated results for its latest quarter as the industrial software provider reported strength in its semiconductor and systems accounts.
Shares, which have nearly doubled in value this year, climbed 1.3% after hours to $37.
Chief Executive Walden Rhines said third-quarter revenue and earnings results "solidly exceeded" the company's guidance.
"Book to bill was significantly above one with strength in both semiconductor and system accounts," he said, adding growth of the annual run-rate in the company's top 10 customers was "a strong 60%" in the quarter.
Earlier this month, the Wilsonville, Ore., company agreed to be acquired by Germany's Siemens for $37.25 a share in cash, valuing it around $4 billion.
For the October period, Mentor Graphics posted a profit of $41.8 million, or 37 cents a share, up sharply from $13.9 million, or 12 cents a share, a year earlier. Excluding stock-based compensation and other items, adjusted per-share earnings rose to 50 cents from 28 cents. Revenue climbed 11% to $322.5 million.
Mentor had expected per-share adjusted earnings of 42 cents and revenue of $310 million.
Gross margin expanded to 84.1% from 83.9%.
Mentor's system and software revenue shot up 18% to $198.6 million, while service and support revenue edged 1.7% higher to $123.9 million.
Because of the Siemens deal, Mentor Graphics said it wouldnot provide an outlook for future financial results and withdrew all previous guidance.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
November 22, 2016 17:44 ET (22:44 GMT)
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