Mentor Graphics Q3 profit beats, outlook misses

CALIFORNIA, USA: Chip-design software maker Mentor Graphics Corp posted better-than-expected quarterly results, helped by higher bookings, but forecast a fourth-quarter profit below market expectations.

For the current quarter, Mentor Graphics, which competes with Synopsys Inc and Cadence Design Systems Inc, forecast adjusted earnings of 50 cents a share, excluding special items, on revenue of $316 million.

Analysts, on average, were expecting earnings of 53 cents a share on revenue of $315.9 million, according to Thomson Reuters I/B/E/S.

The company posted a third-quarter profit of $24.1 million, or 22 cents a share, compared with $15.3 million, or 14 cents a share, last year.

Revenue rose 5 percent to $250.5 million.

Excluding special items, the company earned 25 cents a share.

Analysts, on average, had expected earnings of 21 cents a share, excluding special items, on revenue of $244.9 million.

Bookings for the third quarter rose more than 20 percent from year ago.

Shares of the company closed at $11.41 on Thursday on Nasdaq.