Mentor Graphics Cuts Guidance as Business Slows
Mentor Graphics (MENT) this morning said slowing customer activity has reduced the outlook for the second half of its fiscal year. For FY Q3 ended Oct. 31, the company now sees revenue of $185 million with a non-GAAP loss of five cents a share. Street expectations had been for revenue of $215.1 million and profits of 15 cents a share.
For the fiscal fourth quarter ending Jan. 31, the provider of chip design software sees revenue of $270 million and non-GAAP profits of 55 cents a share. The Street had been looking for $318.6 million and 93 cents.
In a statement, CEO Walden Rhines said that customers had historically negotiated contracts one-to-two quarters before expiration of their contracts.