MENTOR GRAPHICS CORPORATION |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except earnings per share data) | ||||||||||||||||||
Three Months Ended January 31, | Twelve Months Ended January 31, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Revenues: | ||||||||||||||||||
System and software | $ | 226,267 | $ | 220,046 | $ | 681,881 | $ | 631,549 | ||||||||||
Service and support | 104,971 | 100,309 | 406,846 | 383,089 | ||||||||||||||
Total revenues | 331,238 | 320,355 | 1,088,727 | 1,014,638 | ||||||||||||||
Cost of revenues: (1) | ||||||||||||||||||
System and software | 14,984 | 13,737 | 64,280 | 54,972 | ||||||||||||||
Service and support | 30,775 | 29,014 | 117,609 | 108,690 | ||||||||||||||
Amortization of purchased technology | 1,709 | 1,924 | 7,801 | 9,796 | ||||||||||||||
Total cost of revenues | 47,468 | 44,675 | 189,690 | 173,458 | ||||||||||||||
Gross margin | 283,770 | 275,680 | 899,037 | 841,180 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development (2) | 93,751 | 90,180 | 313,962 | 310,758 | ||||||||||||||
Marketing and selling (3) | 95,160 | 89,890 | 338,653 | 326,608 | ||||||||||||||
General and administration (4) | 20,016 | 22,756 | 74,324 | 74,811 | ||||||||||||||
Equity in earnings of Frontline (5) | (134 | ) | (246 | ) | (1,764 | ) | (2,268 | ) | ||||||||||
Amortization of intangible assets (6) | 1,368 | 1,544 | 5,915 | 5,905 | ||||||||||||||
Special charges (7) | 2,514 | 5,786 | 6,314 | 13,174 | ||||||||||||||
Total operating expenses | 212,675 | 209,910 | 737,404 | 728,988 | ||||||||||||||
Operating income | 71,095 | 65,770 | 161,633 | 112,192 | ||||||||||||||
Other income (expense), net (8) | (1,193 | ) | (314 | ) | (1,432 | ) | 1,576 | |||||||||||
Interest expense (9) | (4,883 | ) | (4,755 | ) | (18,866 | ) | (31,444 | ) | ||||||||||
Income before income tax | 65,019 | 60,701 | 141,335 | 82,324 | ||||||||||||||
Income tax expense (benefit) (10) | 3,536 | 3,366 | 2,701 | (1,063 | ) | |||||||||||||
Net income | 61,483 | 57,335 | 138,634 | 83,387 | ||||||||||||||
Less: Loss attributable to noncontrolling interest (11) | (263 | ) | (485 | ) | (102 | ) | (485 | ) | ||||||||||
Net income attributable to Mentor Graphics shareholders |
$ | 61,746 | $ | 57,820 | $ | 138,736 | $ | 83,872 | ||||||||||
Net income per share attributable to Mentor Graphics shareholders: |
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Basic | $ | 0.55 | $ | 0.53 | $ | 1.25 | $ | 0.76 | ||||||||||
Diluted (a) | $ | 0.49 | $ | 0.52 | $ | 1.17 | $ | 0.74 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||
Basic | 112,623 | 109,290 | 110,998 | 110,138 | ||||||||||||||
Diluted | 115,167 | 112,122 | 114,017 | 112,915 | ||||||||||||||
Refer to following page for a description of footnotes. | ||||||||||||||||||
(a) We have reduced the numerator of our diluted earnings per share calculation by $5,272 for both the three and twelve months ended January 31, 2013 for the accumulated adjustment of the noncontrolling interest with redemption feature to its calculated redemption value at January 31, 2013, recorded directly to retained earnings. |