Mentor Graphics Corp, citing slower-than-expected sales due to the consolidation of its channels last quarter, has warned that revenue and earnings for the second quarter will come in substantially below expectations. The Wilsonville, Oregon-based electronic design software house says it now expects to book revenue of $120m and earnings before charges of about $0.09 per share for the quarter, when analysts surveyed by First Call were looking for a profit of $0.14.
In the year-ago quarter, the company earned $4.3m, or $0.07, on revenue of $119.2m. Despite the top line shortfall, Mentor says overall product bookings for the quarter rose roughly 20% year- over-year as North American software bookings rose about 40%. News of the disappointing results came in the same week that Mentor filed a patent infringement suit against former takeover target Quickturn Design Systems Inc.
