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Wilsonville, Ore. — Mentor Graphics Corp. announces that its fourth quarter 2003 bookings and revenues had achieved record levels, with revenues in excess of the $190 million previously projected by the company.
Bookings and revenues were particularly driven by strength in its Calibre product line. Calibre bookings for physical verification, extraction and resolution enhancement technology more than tripled for the quarter compared to the same period a year ago and grew more than 60 percent for the entire year. Book-to-bill was significantly greater than 1.
The company noted that fourth quarter earnings before special charges and amortization of intangibles (EBG) continue to be projected to be approximately 30 cents per share, because operating expenses were adversely affected by both the strength of the euro and significant incentive payments to Calibre engineers triggered by the extraordinary performance of the Calibre product line. Incentive payments of similar magnitude are unlikely to occur in the future absent repeated extraordinary performance by the Calibre product line.
For the full year 2004, assuming the continuation of euro/dollar conversion rates at current levels, Mentor Graphics continues to forecast EBG of about 80 cents per share and GAAP earnings, including the impact of amortization of intangibles, of about 50 cents per share. GAAP earnings may be affected by the resolution of certain tax issues that could reduce the effective tax rate, such as that described in the preceding paragraph.
The company emphasized that the foregoing results are preliminary and are subject to adjustments upon final closing of financial results and completion of the annual audit by independent accountants. Mentor Graphics will release fourth quarter and full year 2003 results after the close of the market on Tuesday, January 27, 2004.
Mentor Graphics Corp. is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics and semiconductor companies. For more information, visit www.mentor.com.