Mentor Graphics Corporation (MENT) has reported an 104.25 percent jump in profit for the quarter ended Jan. 31, 2017. The company has earned $123.10 million, or $1.05 a share in the quarter, compared with $60.27 million, or $0.51 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $142.40 million, or $1.21 a share compared with $73.98 million or $0.63 a share, a year ago. Revenue during the quarter surged 41.72 percent to $477.97 million from $337.27 million in the previous year period. Gross margin for the quarter expanded 350 basis points over the previous year period to 89.43 percent. Total expenses were 68.08 percent of quarterly revenues, down from 76.44 percent for the same period last year. This has led to an improvement of 836 basis points in operating margin to 31.92 percent.
Operating income for the quarter was $152.58 million, compared with $79.45 million in the previous year period.
However, the adjusted operating income for the quarter stood at $179.11 million compared to $93.86 million in the prior year period. At the same time, adjusted operating margin improved 965 basis points in the quarter to 37.47 percent from 27.83 percent in the last year period.
"Mentor achieved all-time record fourth quarter and full year revenues, non-GAAP operating margins and non-GAAP earnings per share," said Walden C. Rhines, chairman and chief executive officer of Mentor Graphics. "Customer and shareholder reaction to the agreement of Siemens to acquire Mentor Graphics, announced in the fourth quarter, has been favorable. On February 2, at a special meeting of shareholders, 99.8 percent of the votes cast approved the transaction."
Operating cash flow improves significantly
Mentor Graphics Corporation has generated cash of $321.81 million from operating activities during the year, up 39.16 percent or $90.56 million, when compared with the last year. The company has spent $72.05 million cash to meet investing activities during the year as against cash outgo of $52.97 million in the last year.
The company has spent $145.32 million cash to carry out financing activities during the year as against cash outgo of $72.56 million in the last year period.
Cash and cash equivalents stood at $441.09 million as on Jan. 31, 2017, up 31.74 percent or $106.26 million from $334.83 million on Jan. 31, 2016.
Working capital drops significantly
Mentor Graphics Corporation has witnessed a decline in the working capital over the last year. It stood at $261.10 million as at Jan. 31, 2017, down 45.05 percent or $214.06 million from $475.16 million on Jan. 31, 2016. Current ratio was at 1.34 as on Jan. 31, 2017, down from 2.12 on Jan. 31, 2016.
Debt moves up marginally
Mentor Graphics Corporation has witnessed an increase in total debt over the last one year. It stood at $279.83 million as on Jan. 31, 2017, up 2.30 percent or $6.30 million from $273.52 million on Jan. 31, 2016. Total debt was 12.38 percent of total assets as on Jan. 31, 2017, compared with 13.25 percent on Jan. 31, 2016. Debt to equity ratio was almost stable at 0.20 as on Jan. 31, 2017, when compared with the last year. Interest coverage ratio improved to 27.73 for the quarter from 15.74 for the same period last year.
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