Mentor Graphics (MENT) Cuts Guidance

Mentor Graphics (Nasdaq: MENT)) lowers FY09 EPS guidance to around $0.40 versus consensus of $0.97. Mentor Graphics sees FY09 revenue of approximately $815 million versus consensus $897.12 million.

Mentor Graphics sees Q3 revenue to be about $185 million versus consensus of $215.14 million. Sees a Q3 loss of $0.05 versus consensus of $0.15.

“Typically, our customers had been negotiating contract renewals a quarter or two before their expiration,” said Walden C. Rhines, chairman and CEO of Mentor Graphics. “In this economic environment, customers are now waiting until the contracts come closer to expiration to renew. We expect a number of sizeable contracts to renew in the next several quarters, which should lead to a stronger fiscal 2010 than fiscal 2009.”

Mentor Graphics Corporation is a supplier of electronic design automation (EDA) systems.
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