Jan 29, 2003
Net income for the quarter was $18.7 million, versus a net loss of $4.8 million a year ago. Revenue rose to $180.1 million, up 8.9% from $165.3 million.
In a press release, Mentor said first-quarter bookings are expected to increase 35% year-on-year. Mentor raised its revenue guidance to $160 million, up $5 million from prior guidance. Expected gross margin is 82 to 83%. Operating expense should be $121 million, a 3 to 4% sequential reduction. Mentor said it expects cash flow to improve throughout the year.
Mentor said system and software revenue increased 6.7% in Q4, to $106.1 million, and service and support revenue climbed 12% to $74 million.
Bookings rose 15% from a year ago, and were up 40% sequentially.
�Driven by the strong fourth-quarter bookings, and continued strength through January, our first quarter revenue is now essentially booked,� President Gregory K. Hinckley said in a statement. �Book-to-bill for the quarter was significantly greater than 1.0, and backlog exiting 2002 was up 25% over the prior year. Acquired businesses performed well.�
Mentor said it gained 219 new customers in the quarter, with more than half of the growth coming from the Pacific Rim. By region, Europe and Pacific Rim bookings were strongest � up 25%, with North America up 10% and Japan down 35%.
For the year, revenue fell to $596.2 million from $600.4 million. System and software revenue dropped 3.4% at $322 million, and service and support revenue ticked up 2.6% to $274.2 million. Mentor posted a net loss of $14.3 million, versus net income of $31.1 million in 2001.
