CORRECTING AND REPLACING Mentor Graphics Reports Record Revenue For Fourth Quarter.Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by Business Wire WILSONVILLE Wilsonville is the name of several communities in the United States of America:
In BW5926 issued Jan. 27, 2004: Third graph graph, figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers. , should read: Book-to-bill was greater than one, though less than expected as a very large deal that booked in the fourth quarter was amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and then rebooked in the first quarter of 2004 (sted: Book-to-bill was greater than one, though less than expected as a very large deal that booked in the fourth quarter has been requested to be amended. The transaction is expected to be rebooked in the first quarter of 2004. The corrected release reads: MENTOR GRAPHICS Mentor Graphics, Inc (NASDAQ: MENT) is a US-based multinational corporation dealing in electronic design automation (EDA) for electrical engineering and electronics, as of 2004, ranked third in the EDA industry it helped create. REPORTS RECORD REVENUE FOR FOURTH QUARTER Mentor Graphics Corporation (Nasdaq:MENT) today announced fourth quarter earnings before goodwill and special charges of $.30 per share on record revenue of $202 million. Earnings on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis were $.18 per share. Revenue climbed 12% from the fourth quarter of 2002. Software bookings rose over 15%, while total bookings climbed 5%. "Mentor's strength in new products continued to outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. softness in overall electronic design automation spending," said Walden Walden Thoreau’s classic; advocates a return to nature. [Am. Lit.: Van Doren, 208] See : Pastoralism C. Rhines, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Mentor Graphics. "The drive to smaller process geometries has accelerated the industry adoption of Mentor's Calibre calibre see caliber. product family, with particular strength in resolution enhancement technology
Resolution enhancement technology (RET) is a form of image processing technology used to manipulate dot characteristics popular among laser printer and inkjet printer (RET ret v. ret·ted, ret·ting, rets v.tr. To moisten or soak (flax, for example) in order to soften and separate the fibers by partial rotting. v.intr. To become so moistened or soaked. ). During the quarter, Mentor Mentor, in Greek mythology Mentor (mĕn`tər, –tôr'), in Greek mythology, friend of Odysseus and tutor of Telemachus. received an order for Calibre RET that was the largest single product order in company history." Book-to-bill was greater than one, though less than expected as a very large deal that booked in the fourth quarter was amended, and then rebooked in the first quarter of 2004. Mentor saw a sharp sequential One after the other in some consecutive order such as by name or number. rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in support revenue in the fourth quarter. Though still lower than the year ago quarter, customers reinstated lapsed LEGACY, LAPSED. A legacy is said to be lapsed or extinguished, when the legatee dies before the testator, or before the condition upon which the legacy is given has been performed, or before the time at which it is directed to vest in interest has arrived. Bac. Ab. Legacy, E; Com. Dig. support contracts at record levels. Mentor Graphics sees its support reinstatements as a positive indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. for the industry. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma gross margin was 85% as foreign exchange effects and emulation (architecture) emulation - When one system performs in exactly the same way as another, though perhaps not at the same speed. A typical example would be emulation of one computer by (a program running on) another. reserves offset the benefit of higher revenue. Gross margin on a GAAP basis was 84%. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. exceeded guidance as exceptional performance in the Calibre product line triggered non-recurring engineering Non-recurring engineering (NRE) refers to the one-time cost of researching, designing, and testing a new product. When budgeting for a project, NRE must be considered in order to analyze if a new product will be profitable. incentive payments. Additionally, foreign exchange negatively impacted operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. as the majority of Mentor's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. revenue contracts are dollar denominated, while international expenses are in local currencies. During the quarter, Mentor Graphics launched the ModelSim (simulation) Modelsim - A simulation tool for programming VLSI ASICs, FPGAs, CPLDs, and SoCs. Manual by Arnd Riebartsch. 5.8 tool as part of its Scalable Verification See verify. verification - The process of determining whether or not the products of a given phase in the life-cycle fulfil a set of established requirements. Environment. The new release features the industry's broadest language support including the first commercial version of System Verilog An HDL (hardware description language) used to design electronic systems at the component, board and system level. Developed by Phil Morby at Gateway Design Automation, it was introduced in 1985 along with Verilog-XL, a logic simulator. , the first full implementation of Verilog 2001, native support for System C, assertion (programming) assertion - 1. An expression which, if false, indicates an error. Assertions are used for debugging by catching can't happen errors. 2. In logic programming, a new fact or rule added to the database by the program at run time. support through the Property Specification Language 1.0 and VHDL (VHSIC Hardware Description Language) A hardware description language (HDL) used to design electronic systems at the component, board and system level. VHDL allows models to be developed at a very high level of abstraction. . "Nine product families set annual bookings records in 2003," said Gregory K. Hinckley, president of Mentor Graphics. "This strength offset continued weakness in emulation, consulting and FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. . Printed circuit board performance did not match the extraordinarily strong fourth quarter of 2002 when bookings grew 85%." During the year, Mentor's innovative new test product TestKompress continued its strong ramp, reaching 16 customers by end of the year. The PADS PADS PPPoE (Point-to-Point Protocol Over Ethernet) Active Discovery Session-Confirmation PADS Public Action to Deliver Shelter PADS Parallel And Distributed Simulation PADS People And Dogs Society (UK Charity) ready-to-use PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. design solution hit its stride with orders up nearly 70% for the fourth quarter. The breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of the Calibre Design-to-Silicon platform continued to widen wid·en tr. & intr.v. wid·ened, wid·en·ing, wid·ens To make or become wide or wider. wid  en·er n. as Mentor's
extraction extraction /ex·trac·tion/ (eks-trak´shun)1. the process or act of pulling or drawing out. 2. the preparation of an extract. bookings more than doubled during the year. During the quarter, the company won 350 new customers. By geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. , North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. bookings were up 5%, Japan was up 30%, PacRim was flat and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). was down 10%. Special charges were largely a result
of further reserves for abandoned facilities.About Mentor Graphics Mentor Graphics Corporation (Nasdaq:MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" and award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" support for the world's most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $675 million and employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,700 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon Wilsonville is a city in Clackamas County, Oregon, United States. The population was 13,991 at the 2000 census, and as of 2005 was estimated to be 16,510.[1] Geography Wilsonville is located at (45.306805, -122. 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. 95131-2314. World Wide Web site: http://www.mentor.com/. Mentor Graphics, Calibre, ModelSim, TestKompress and PADS are registered trademarks of Mentor Graphics Corporation. In the calculation of earnings, gross margin and operating expenses before amortization of acquired intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and special charges, Mentor Graphics excludes amortization of acquired intangibles and write-offs of in-process R&D from acquisitions. Also excluded are non-operating and non-recurring items classified as special charges such as restructure expenses and asset impairments. These excluded items are generally infrequent in·fre·quent adj. 1. Not occurring regularly; occasional or rare: an infrequent guest. 2. , less predictable and are often non-cash in nature. Mentor Graphics believes that excluding these items provides investors with a representation of its core performance, and a pro forma base line for assessing the future earnings potential of Mentor Graphics. These pro forma measures should be assessed in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with GAAP earnings measures for a more complete understanding of the Company's results. Since pro forma measures exclude certain items, differences in earnings from GAAP can be significant; Mentor Graphics management evaluates its performance under both measures for a complete understanding of its results. Investors are encouraged to review both measures for their evaluations and consider the GAAP earnings measures as the most complete measure of Mentor Graphics' overall performance. Statements in this press release regarding the Company's outlook for future periods constitute "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the following: (i) the Company's ability to continue selling products and services during the continuing slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the electronics industry; (ii) the Company's ability to manage expenses during the current slowdown in the electronics industry; (iii) changes in accounting or reporting rules or interpretations, changes in the tax environment worldwide, limitations on repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of earnings, licensing and intellectual property rights protection; (iv) effects of the increasing volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of foreign currency fluctuations on the Company's business and operating results; (v) the Company's ability to successfully offer products and services that compete in the highly competitive and dynamic EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. industry including the risk that the Company's technology, products or inventory become obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. ; (vi) the overall instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability of diverse economies, including changes in regional or worldwide economic or political conditions, government trade restrictions A trade restriction is an artificial restriction on the trade of goods between two countries. It is the result of protectionism. However, the term is not uncontroversial since what one part may see as a trade restriction another may see as a way to protect consumers from inferior, , or war in the Middle East or elsewhere (vii) the Company's ability to successfully integrate and manage its recent and future acquisitions, and (viii) effects of unanticipated shifts in product mix on gross margin and unanticipated shifts in geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. mix on the overall tax rate, all as may be discussed in more detail under the heading "Factors That May Affect Future Results and Financial Condition" in the Company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. or Form 10-Q Form 10-Q See 10-Q. . Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. In addition, statements regarding outlook do not reflect potential impacts of mergers or acquisitions that have not been announced or closed as of the time the statements are made. Mentor Graphics disclaims any obligation to update any such factors or to publicly announce the results of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any of the forward-looking statements to reflect future events or developments.
MENTOR GRAPHICS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except earnings per share data-Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
2003 2002 2003 2002
-------- -------- ---------- --------
Revenues:
System and software $128,680 $106,105 $ 394,449 $321,994
Service and support 73,229 74,011 281,219 274,185
-------- -------- ---------- --------
Total revenues 201,909 180,116 675,668 596,179
-------- -------- ---------- --------
Cost of revenues:
System and software 7,180 5,770 22,721 27,665
Service and support 22,749 21,658 84,554 82,831
Amortization of purchased
technology 2,625 2,215 9,422 6,688
-------- -------- ---------- --------
Total cost of
revenues 32,554 29,643 116,697 117,184
-------- -------- ---------- --------
Gross margin 169,355 150,473 558,971 478,995
-------- -------- ---------- --------
Operating expenses:
Research and development 51,434 45,188 184,797 164,228
Marketing and selling 69,492 60,505 245,170 218,963
General and administration 21,830 19,893 75,984 72,491
Amortization of intangible
assets 908 859 3,883 2,255
Emulation litigation
settlement - - 20,264 -
Special charges 7,809 8,244 15,980 34,884
-------- -------- ---------- --------
Total operating
expenses 151,473 134,689 546,078 492,821
-------- -------- ---------- --------
Operating income (loss) 17,882 15,784 12,893 (13,826)
Other income, net 952 989 5,460 6,905
Interest expense (4,725) (3,988) (17,224) (11,696)
-------- -------- ---------- --------
Income (loss) before
income taxes 14,109 12,785 1,129 (18,617)
Income tax expense (benefit) 1,059 (5,875) (6,804) (4,303)
-------- -------- ---------- --------
Net income
(loss) $ 13,050 $ 18,660 $ 7,933 $(14,314)
======== ======== ========== ========
Net income (loss) per
share:
Basic $ .19 $ .28 $ .12 $ (.22)
======== ======== ========== ========
Diluted $ .18 $ .28 $ .11 $ (.22)
======== ======== ========== ========
Weighted average number
of shares outstanding:
Basic 68,056 66,453 67,680 65,766
======== ======== ========== ========
Diluted 71,066 67,577 70,464 65,766
======== ======== ========== ========
MENTOR GRAPHICS CORPORATION
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except percentages and earnings per
share data-Unaudited)
Three Months Ended December 31, 2003
GAAP Adjustments Pro Forma
--------------------------------
Revenues:
System and software $128,680 $ - $128,680
Service and support 73,229 - 73,229
-------- --------- --------
Total revenues 201,909 - 201,909
-------- --------- --------
Cost of revenues:
System and software 7,180 - 7,180
Service and support 22,749 - 22,749
Amortization of purchased technology 2,625 (2,625)(1) -
-------- --------- --------
Total cost of revenues 32,554 (2,625) 29,929
-------- --------- --------
Gross margin 169,355 2,625 171,980
-------- --------- --------
Gross margin percentage 83.9% 85.2%
-------- --------
Operating expenses:
Research and development 51,434 - 51,434
Marketing and selling 69,492 - 69,492
General and administration 21,830 - 21,830
Amortization of intangible assets 908 (908)(1) -
Special charges 7,809 (7,809)(2) -
-------- --------- --------
Total operating
expenses 151,473 (8,717) 142,756
-------- --------- --------
Operating income 17,882 11,342 29,224
Other income, net 952 - 952
Interest expense (4,725) - (4,725)
-------- --------- --------
Income before income taxes 14,109 11,342 25,451
Income tax expense 1,059 3,268 (3) 4,327
-------- --------- --------
Net income $ 13,050 $ 8,074 $ 21,124
======== ========= ========
Net income per share:
Basic $ .19 $ .31
======== ========
Diluted $ .18 $ .30
======== ========
Weighted average number of
shares outstanding:
Basic 68,056 68,056
======== ========
Diluted 71,066 71,066
======== ========
(1) Non-cash amortization of intangible assets.
(2) Merger, acquisition, restructuring and other charges.
(3) EBG income tax expense calculation differs from the GAAP
calculation as it assumes a normalized effective tax rate based on
multiple years of historical and forecast future earnings.
MENTOR GRAPHICS CORPORATION
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except percentages and earnings per
share data-Unaudited)
Three Months Ended December 31, 2002
GAAP Adjustments Pro Forma
--------------------------------
Revenues:
System and software $106,105 $ - $106,105
Service and support 74,011 - 74,011
-------- --------- --------
Total revenues 180,116 - 180,116
-------- --------- --------
Cost of revenues:
System and software 5,770 - 5,770
Service and support 21,658 - 21,658
Amortization of purchased technology 2,215 (2,215)(1) -
-------- --------- --------
Total cost of revenues 29,643 (2,215) 27,428
-------- --------- --------
Gross margin 150,473 2,215 152,688
-------- --------- --------
Gross margin percentage 83.5% 84.8%
-------- --------
Operating expenses:
Research and development 45,188 - 45,188
Marketing and selling 60,505 - 60,505
General and administration 19,893 - 19,893
Amortization of intangible assets 859 (859)(1) -
Special charges 8,244 (8,244)(2) -
-------- --------- --------
Total operating
expenses 134,689 (9,103) 125,586
-------- --------- --------
Operating income 15,784 11,318 27,102
Other income, net 989 - 989
Interest expense (3,988) - (3,988)
-------- --------- --------
Income before income taxes 12,785 11,318 24,103
Income tax expense (benefit) (5,875) 10,695 (3) 4,820
-------- --------- --------
Net income $ 18,660 $ 623 $ 19,283
======== ========= ========
Net income per share:
Basic $ .28 $ .29
======== ========
Diluted $ .28 $ .29
======== ========
Weighted average number of
shares outstanding:
Basic 66,453 66,453
======== ========
Diluted 67,577 67,577
======== ========
(1) Non-cash amortization of intangible assets.
(2) Merger, acquisition, restructuring and other charges.
(3) EBG income tax expense calculation differs from the GAAP
calculation as it assumes a normalized effective tax rate based on
multiple years of historical and forecast future earnings.
MENTOR GRAPHICS CORPORATION
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except percentages and earnings per
share data-Unaudited)
Twelve Months Ended December 31, 2003
GAAP Adjustments Pro Forma
------------------------------------
Revenues:
System and software $ 394,449 $ - $ 394,449
Service and support 281,219 - 281,219
---------- ---------- ----------
Total revenues 675,668 - 675,668
---------- ---------- ----------
Cost of revenues:
System and software 22,721 - 22,721
Service and support 84,554 - 84,554
Amortization of purchased
technology 9,422 (9,422)(1) -
---------- ---------- ----------
Total cost of
revenues 116,697 (9,422) 107,275
---------- ---------- ----------
Gross margin 558,971 9,422 568,393
---------- ---------- ----------
Gross margin
percentage 82.7% 84.1%
---------- ----------
Operating expenses:
Research and development 184,797 - 184,797
Marketing and selling 245,170 - 245,170
General and administration 75,984 - 75,984
Amortization of intangible
assets 3,883 (3,883)(1) -
Emulation litigation
settlement 20,264 (20,264) -
Special charges 15,980 (15,980)(2) -
---------- ---------- ----------
Total operating
expenses 546,078 (40,127) 505,951
---------- ---------- ----------
Operating income 12,893 49,549 62,442
Other income, net 5,460 - 5,460
Interest expense (17,224) - (17,224)
---------- ---------- ----------
Income before income taxes 1,129 49,549 50,678
Income tax expense (benefit) (6,804) 15,419 (3) 8,615
---------- ---------- ----------
Net income $ 7,933 $ 34,130 $ 42,063
========== ========== ==========
Net income per share:
Basic $ .12 $ .62
========== ==========
Diluted $ .11 $ .60
========== ==========
Weighted average number of
shares outstanding:
Basic 67,680 67,680
========== ==========
Diluted 70,464 70,464
========== ==========
(1) Non-cash amortization of intangible assets.
(2) Merger, acquisition, restructuring and other charges.
(3) EBG income tax expense calculation differs from the GAAP
calculation as it assumes a normalized effective tax rate based on
multiple years of historical and forecast future earnings.
MENTOR GRAPHICS CORPORATION
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except percentages and earnings per
share data-Unaudited)
Twelve Months Ended December 31, 2002
GAAP Adjustments Pro Forma
----------------------------------
Revenues:
System and software $321,994 $ - $ 321,994
Service and support 274,185 - 274,185
-------- ---------- ----------
Total revenues 596,179 - 596,179
-------- ---------- ----------
Cost of revenues:
System and software 27,665 - 27,665
Service and support 82,831 - 82,831
Amortization of purchased
technology 6,688 (6,688)(1) -
-------- ---------- ----------
Total cost of
revenues 117,184 (6,688) 110,496
-------- ---------- ----------
Gross margin 478,995 6,688 485,683
-------- ---------- ----------
Gross margin
percentage 80.3% 81.5%
-------- ----------
Operating expenses:
Research and development 164,228 - 164,228
Marketing and selling 218,963 - 218,963
General and administration 72,491 - 72,491
Amortization of intangible assets 2,255 (2,255)(1) -
Special charges 34,884 (34,884)(2) -
-------- ---------- ----------
Total operating
expenses 492,821 (37,139) 455,682
-------- ---------- ----------
Operating income (loss) (13,826) 43,827 30,001
Other income, net 6,905 - 6,905
Interest expense (11,696) - (11,696)
-------- ---------- ----------
Income (loss) before income
taxes (18,617) 43,827 25,210
Income tax expense (benefit) (4,303) 9,345 (3) 5,042
-------- ---------- ----------
Net income (loss) $(14,314)$ 34,482 $ 20,168
======== ========== ==========
Net income (loss) per share:
Basic $ (.22) $ .31
======== ==========
Diluted (4) $ (.22) $ .30
======== ==========
Weighted average number of
shares outstanding:
Basic 65,766 65,766
======== ==========
Diluted 65,766 67,724
======== ==========
(1) Non-cash amortization of intangible assets.
(2) Merger, acquisition, restructuring and other charges.
(3) EBG income tax expense calculation differs from the GAAP
calculation as it assumes a normalized effective tax rate based on
multiple years of historical and forecast future earnings.
(4) Common stock equivalents related to stock options and warrants
are anti-dilutive in a net loss period and therefore are not included
in diluted net loss per share for the twelve months ended December 31,
2002.
MENTOR GRAPHICS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands - Unaudited)
As of As of
December December
31, 2003 31, 2002
----------------------------------------------------------------------
Assets
Current assets:
Cash and short-term investments $ 71,324 $ 38,826
Trade accounts receivable, net 104,043 77,960
Term receivables, short-term 119,627 81,697
Prepaid expenses and other 27,164 24,884
Deferred income taxes 18,787 16,827
-------- --------
Total current assets 340,945 240,194
Property, plant and equipment, net 91,350 90,259
Term receivables, long-term 98,207 78,431
Intangibles, net 326,281 342,171
Other assets 83,905 53,793
-------- --------
Total assets $940,688 $804,848
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings $ 6,910 $ 17,670
Accounts payable 18,105 17,110
Income taxes payable 35,122 40,784
Accrued payroll and related liabilities 80,484 51,250
Accrued liabilities 37,719 45,233
Deferred revenue 74,662 72,902
-------- --------
Total current liabilities 253,002 244,949
Long-term notes payable 286,768 177,685
Other long-term liabilities 23,161 19,275
-------- --------
Total liabilities 562,931 441,909
-------- --------
Minority Interest 3,391 3,219
Stockholders' equity:
Common stock 294,180 297,995
Deferred compensation (2,601) (4,761)
Retained earnings 57,800 49,867
Accumulated other comprehensive income 24,987 16,619
-------- --------
Total stockholders' equity 374,366 359,720
-------- --------
Total liabilities and stockholders' equity $940,688 $804,848
======== ========
MENTOR GRAPHICS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands - Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-----------------------------------------
2003 2002 2003 2002
--------- --------- --------- ----------
Operating Cash Flows:
Net income (loss) $ 13,050 $ 18,660 $ 7,933 $ (14,314)
Depreciation and
amortization 5,752 15,898 41,850 37,811
Other adjustments to
reconcile operating
cash (4,008) 16,510 (6,591) 35,517
Changes in working
capital (23,031) (59,065) (57,823) (63,530)
--------- --------- --------- ----------
Net cash used in operating
activities (8,237) (7,997) (14,631) (4,516)
Net cash used in investing
activities (12,386) (7,676) (37,575) (280,597)
Net cash provided by
financing activities 2,643 503 84,641 195,715
Effect of exchange rate
changes on cash
And cash equivalents 202 (62) 929 338
--------- --------- --------- ----------
Net change in cash and cash
equivalents (17,778) (15,232) 33,364 (89,060)
Cash and cash equivalents at
beginning of
period 86,111 50,201 34,969 124,029
--------- --------- --------- ----------
Cash and cash equivalents at
end of period $ 68,333 $ 34,969 $ 68,333 $ 34,969
========= ========= ========= ==========
MENTOR GRAPHICS CORPORATION
SUPPLEMENTAL FINANCIAL AND OTHER INFORMATION
(In thousands, except for percentages and
days sales outstanding-Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Geographic Revenue:
Americas $ 104,280 $ 95,871 $ 331,307 $ 305,542
51.7% 53.2% 49.0% 51.3%
Europe $ 55,277 $ 49,803 $ 188,657 $ 157,679
27.4% 27.7% 27.9% 26.4%
Japan $ 26,146 $ 20,202 $ 100,737 $ 81,757
12.9% 11.2% 14.9% 13.7%
Pac Rim $ 16,206 $ 14,240 $ 54,967 $ 51,201
Other Data: 8.0% 7.9% 8.2% 8.6%
Capital expenditures $ 9,189 $ 6,396 $ 23,532 $ 20,409
Days sales outstanding 100 80 100 80
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