WILSONVILLE, Ore., April 15, 2015 /PRNewswire/ -- Mentor
Graphics Corporation (NASDAQ: MENT) today announced approximately
110 North American employees have elected to participate in a
voluntary early retirement program. The purpose of the early
retirement program previously announced and other selective
workforce actions initiated in the first quarter of fiscal 2016 is
to improve alignment of the Mentor Graphics workforce with targeted
business initiatives and to balance global field investments with
the available opportunity.
"Mentor Graphics has several high-growth opportunities including
embedded software, the transportation market and the continued
growth of the Pacific Rim, both as
developers and consumers of advanced electronics," said
Walden C. Rhines, Chairman and CEO
of Mentor Graphics. "These restructuring activities will
enable Mentor to focus personnel and resources on priority
opportunities and regions of the world, deliver long-term growth
and build shareholder value."
Approximately 4 percent of the Mentor worldwide workforce is
expected to be impacted by the early retirement program and other
restructuring actions in the first half of fiscal 2016. These
actions are anticipated to result in a restructuring charge
reported as a GAAP expense of approximately $37 million. The majority of the charges
are personnel related. Approximately $34 million is expected to be recorded as a
restructuring expense in the company's first quarter ending
April 30, 2015. The remainder
of the restructuring charges, approximately $3 million, is expected to be recorded in the
second and third quarters of fiscal 2016. The workforce
restructuring costs are not anticipated to have a material effect
on the company's revenue and non-GAAP earnings-per-share guidance
for the first quarter or fiscal 2016. The impact of favorable
foreign exchange rates and the restructuring is expected to
modestly lower full-year fiscal 2016 expenses versus expenses
embedded in the February 26, 2015
guidance. Fiscal 2016 cash flow from operations is expected
to be approximately $200 million. The
company will provide additional information regarding the
restructuring and updated fiscal 2016 guidance in the first quarter
earnings release and conference call. The release and
conference call are scheduled for before market open on May
22. Specific conference call details will be announced
approximately 2 weeks prior to the conference call.
About Mentor Graphics
Mentor Graphics Corporation is a world leader in electronic
hardware and software design solutions, providing products,
consulting services and award-winning support for the world's most
successful electronic, semiconductor and systems companies.
Established in 1981, the company reported revenues in the last
fiscal year in excess of $1.24
billion. Corporate headquarters are located at 8005
S.W. Boeckman Road, Wilsonville,
Oregon 97070-7777. World Wide Web site:
http://www.mentor.com/.
(Mentor Graphics and Mentor are registered trademarks of Mentor
Graphics Corporation. All other company and/or product names are
the trademarks and/or registered trademarks of their respective
owners.)
This press release includes forward-looking statements about
expected restructuring expenses, guidance and cash flow from
operations. These forward-looking statements are based on
information available to us on the date of this release and we
assume no obligation to update these forward-looking statements for
any reason. Actual results may differ materially from those in the
forward-looking statements. Risks and uncertainties that may affect
the forward-looking statements include actual expenses associated
with voluntary early retirement program and restructuring
activities; other risks are discussed in more detail under the
heading "Risk Factors" in the company's most recent Form 10-K or
Form 10-Q.
For more information, please contact:
Joe Reinhart
503.685.1462
joe_reinhart@mentor.com
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SOURCE Mentor Graphics