Mentor Graphics Reports Fiscal First Quarter Results

MENTOR GRAPHICS CORPORATION
UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages)


		Three Months Ended April 30,
			2014			2013
GAAP gross profit		$	194,708		$	186,334
Reconciling items to non-GAAP gross profit:
Equity plan-related compensation			535			460
Amortization of purchased technology			1,361			1,207
Non-GAAP gross profit		$	196,604		$	188,001


		Three Months Ended April 30,
			2014			2013
GAAP gross profit as a percent of total revenues			77.2	%		82.3	%
Non-GAAP adjustments detailed above			0.8	%		0.7	%
Non-GAAP gross profit as a percent of total revenues			78.0	%		83.0	%


		Three Months Ended April 30,
			2014			2013
GAAP operating expenses		$	193,064		$	180,441
Reconciling items to non-GAAP operating expenses:
Equity plan-related compensation			(7,594	)		(6,106	)
Amortization of Frontline purchased technology and other
identified intangible assets			(116	)		(737	)
Amortization of other identified intangible assets			(1,750	)		(1,654	)
Special charges ^a			(5,926	)		(4,023	)
Non-GAAP operating expenses		$	177,678		$	167,921


		Three Months Ended April 30,
			2014			2013
GAAP operating income		$	1,644		$	5,893
Reconciling items to non-GAAP operating income:
Equity plan-related compensation			8,129			6,566
Amortization of purchased technology			1,361			1,207
Amortization of Frontline purchased technology and other
identified intangible assets			116			737
Amortization of other identified intangible assets			1,750			1,654
Special charges ^a			5,926			4,023
Non-GAAP operating income		$	18,926		$	20,080


		Three Months Ended April 30,
			2014			2013
GAAP operating income as a percent of total revenues			0.7	%		2.6	%
Non-GAAP adjustments detailed above			6.8	%		6.3	%
Non-GAAP operating income as a percent of total revenues			7.5	%		8.9	%


		Three Months Ended April 30,
			2014			2013
GAAP other income (expense), net and interest expense		$	(4,843	)	$	(5,744	)
Reconciling items to non-GAAP other income (expense), net
and interest expense:
Equity in earnings of unconsolidated entities			13			(51	)
Amortization of original issuance debt discount			1,494			1,391
Non-GAAP other income (expense), net and interest expense		$	(3,336	)	$	(4,404	)


	^a See footnote ^a for a discussion of the reclassification of certain litigation costs to special charges.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 Next Page »