Mentor Graphics Reports Fiscal Third Quarter Results

MENTOR GRAPHICS CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(In thousands, except earnings per share data)
           
 
Three Months Ended October 31, Nine Months Ended October 31,
  2009     2008     2009     2008  
GAAP net loss a $ (27,034 ) $ (78,863 ) $ (61,256 ) $ (122,157 )
Non-GAAP adjustments:
Equity plan-related compensation: (1)
Cost of revenues 349 351 1,318 1,102
Research and development 2,374 2,979 8,879 8,830
Marketing and selling 1,856 2,150 6,784 6,371
General and administration 1,130 1,518 3,995 4,830
System and software cost of revenues (2) - - - 103
Acquisition - related items:
Amortization of purchased assets
Cost of revenues (3) 3,089 3,810 8,965 9,040
Amortization of intangible assets (4) 2,796 3,129 8,554 8,099
In-process research and development (5) - 6,790 - 22,075
Special charges (6) 5,993 2,214 15,890 15,099
Other income, net (7) 170 445 851 1,088
Interest expense a (8) 698 642 1,697 1,885
Income tax effects (9)   13,391     51,128     18,849     29,848  
Total of non-GAAP adjustments   31,846     75,156     75,782     108,370  
Non-GAAP net income (loss) a $ 4,812   $ (3,707 )   $ 14,526   $ (13,787 )  
 
GAAP weighted average shares (diluted) 97,854 92,354 95,636 91,484
Non-GAAP adjustment   2,042     -     656     -  
Non-GAAP weighted average shares (diluted)   99,896     92,354     96,292     91,484  
 
GAAP net loss per share (diluted) a $

(0.28

)

$

(0.85

)

$

(0.64

)

$

(1.34

)

Non-GAAP adjustments detailed above  

0.33

 

   

0.81

 

   

0.79

 

   

1.19

 

 
Non-GAAP net income (loss) per share (diluted) a $

0.05

 

  $

(0.04

)

$

0.15

 

  $

(0.15

)

 
a The three and nine months ended October 31, 2008 presentations have been adjusted for the retrospective adoption of the FASB's convertible debt accounting guidance.
 
                       
(1 ) Equity plan-related compensation expense.
 
(2 ) Amount represents the write-off of prepaid royalty amounts associated with the closure of our Intellectual Property division.
 
(3 ) Amount represents amortization of purchased technology resulting from acquisitions. Purchased intangible assets are amortized over two to five years.
 
(4 ) Other identified intangible assets are amortized to other operating expense over two to five years. Other identified intangible assets include trade names, employment agreements, customer relationships, and deferred compensation which are the result of acquisition transactions.
 
(5 ) Three months ended October 31, 2008 : Write-off of $6,790 for in-process research and development related to the Flomerics acquisition.
Nine months ended October 31, 2008 : Write-off of $8,090 for in-process research and development related to the Ponte and Flomerics acquisitions and $13,985 related to the acquisition of technology which has not yet reached technological feasibility and provided no alternative future uses. The technology is expected to be the basis for a new offering in the Calibre product family once development is completed.
 
(6 ) Three months ended October 31, 2009: Special charges consist of (i) $3,369 of costs incurred for employee rebalances which includes severance benefits, notice pay, and outplacement services, (ii) $1,231 in acquisition costs, (iii) $1,175 in advisory fees, (iv) $159 related to the abandonment of excess leased facility space, and (v) $59 related to a casualty loss.
Three months ended October 31, 2008: Special charges consist of (i) $2,273 in advisory fees, (ii) $350 of costs incurred for employee rebalances consisting of severance benefits, notice pay and outplacement services, and (iii) $(409) related to leased facilities.
Nine months ended October 31, 2009: Special charges consist of (i) $8,996 of costs incurred for employee rebalances which includes severance benefits, notice pay, and outplacement services, (ii) $3,525 in advisory fees, (iii) $983 related to the abandonment of excess leased facility space, (iv) $1,769 in acquisition costs, (v) $566 related to a casualty loss, and (vi) $51 in other costs.
Nine months ended October 31, 2008: Special charges consist of (i) $9,194 of costs incurred for employee rebalances which includes severance benefits, notice pay, and outplacement services, (ii) $3,345 in advisory fees, (iii) $2,547 related to the abandonment of excess leased facility space, and (iv) $13 in fixed asset write-offs related to the closure of our Intellectual Property Division.
 
(7 ) Three months ended October 31, 2009 : Loss of $170 on investment accounted for under the equity method of accounting.
Three months ended October 31, 2008 : Loss of $445 on investment accounted for under the equity method of accounting.
Nine months ended October 31, 2009 : Other income, net consists of (i) loss of $738 on investment accounted for under the equity method of accounting and (ii) an impairment of $113 for an investment accounted for under the cost method.
Nine months ended October 31, 2008 : Loss of $1,088 on investment accounted for under the equity method of accounting.
 
(8 ) Three months ended October 31, 2009 : $698 in amortization of original issuance debt discount.
Three months ended October 31, 2008 : $642 in amortization of original issuance debt discount.
Nine months ended October 31, 2009 : $2,051 in amortization of original issuance debt discount and $(354) in discounts and unamortized debt costs related to a partial redemption of the $110.0M convertible debt.

Nine months ended October 31, 2008 : $1,885 in amortization of original issuance debt discount.

 

(9 ) Non-GAAP income tax expense adjustment reflects the application of our assumed normalized effective 17% tax rate, instead of our GAAP tax rate, to our non-GAAP pre-tax income.
 

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12  Next Page »



Review Article Be the first to review this article

SolidCAM: SolidCAM SEE IT LIVE

Featured Video
Jobs
System Designer/Engineer for Bluewater at Southfield, MI
Director of Process Engineering. for Tekni-Plex at Toledo, OH
Mechanical Design Engineer 3 for KLA-Tencor at Milpitas, CA
Sr Mechanical Design Engineer for Medtronic at mounds view, MN
Geospatial Systems Administrator for BAE Systems Intelligence & Security at arnold, MO
Senior Mechanical Engineer for BAE Systems Intelligence & Security at Arlington, VA
Upcoming Events
Formlabs LA 3D Printing Roadshow at Munky King Lost Angeles CA - Feb 8 - 9, 2018
ESPRIT World 2018 at Indianapolis Marriott Downtown 350 West Maryland Street Indianapolis IN - Jun 11 - 15, 2018
HxGN LIVE 2018 at The Venetian Las Vegas NV - Jun 12 - 15, 2018
IMTS2018 International Manufacturing Tech Show at McCormick Place Chicago IL - Sep 10 - 15, 2018
Tebis



Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise