Shares in Mentor Graphics Corp leapt by 37% to $11.06 yesterday after the Wilsonville, Oregon-based provider of electronic and semiconductor design software and services, forecast record revenues of $148m for the fourth quarter. The company said product revenues for the three months to December 31, 1998 increased by more than 35%, and both orders and gross margins hit record levels. Mentor said that fourth quarter earnings per share should exceed First Call estimates of $0.17, prior to special charges relating to two acquisitions and the relocation of the company’s distribution facility. The boom in revenues and leap in its share price comes at a handy time for Mentor as it is currently engaged in a bidding war with Cadence Design Systems Inc for Quickturn Design Systems Inc (CI No 3,569). Ironically, success in the battle for Quickturn is the one shadow hanging over Mentor as analysts fear a successful takeover will dilute earnings in the first three quarters of this year.
