Tuesday, November 11, 2008

Mentor Graphics Slashes Guidance

Wilsonville, Oregon-based Mentor Graphics, a maker of chip design software, said this morning that it is reducing the firm's outlook for the second half of the fiscal year. The firm said it now expects revenues of about $185M for the firm's fiscal third quarter, and a GAAP loss of approximately $0.80 per share, and revenues of approximately $270M for its fiscal fourth quarter, and GAPP EPS of $0.60. The firm blamed the reduced estimates on slow contract renewals of its customers; the firm said that its customers had been negotiating renewals a quarter or two before expiration, but are now waiting until the contracts are closer to expiration to renew.