Mentor Graphics acquiert Sierra Design Automation et crée le flot d’implémentation physique nécessaire aux technologies 65 et 45 nanomètres

Juin 2007 – Mentor Graphics Corporation (Nasdaq : MENT) annonce l'acquisition de Sierra Design Automation (Santa Clara, Californie), éditeur majeur de solutions de placement-routage hautes performances. Le montant de l'opération s'élève à 90 millions de dollars payables pour moitié en numéraire et pour moitié en actions Mentor Graphics.
« En associant les capacités DFM sophistiquées de Mentor Graphics à notre solution de placement-routage capable de gérer les problèmes de variabilité de process ou de lithographie, nos clients sont en mesure de combiner cycle de développement rapide avec une qualité d’implantation permettant de fort rendement de production», déclare Pravin Madhani, CEO de Sierra Design Automation. « A 65 et 45 nanomètres, les discontinuités telles que la variabilité des paramètres technologiques, la taille des designs, la faible consommation et l'optimisation en vue de la production augmentent la complexité du processus de conception physique. La fusion avec Mentor nous permet de fournir un flot puissant qui répond de façon complète à ces discontinuités. »

« L'outil Calibre a permis d'identifier un manque et de le combler. C'est ce qui explique son succès. Aujourd'hui, c'est le marché du DFM qui connaît des problèmes similaires », explique Walden C. Rhines, CEO de Mentor Graphics. « Nos clients les plus exigeants demandent un flot d’implémentation physique capable de gérer des douzaines de « process corners » et des modes divers tout en répondant aux défis de fabrication pour réussir le passage en fabrication. Le leadership de Mentor et de Sierra dans ces domaines nous a naturellement amené à collaborer. L'acquisition de Sierra étend la supériorité de Mentor en matière de technologie DFM et fournit l'intégration nécessaire entre conception physique et vérification finale tout en améliorant le rendement. »

« STMicroelectronics conçoit des puces extrêmement complexes et des géométries sophistiquées avec des designs 65 et 45 nm en cours de production et de développement », poursuit Philippe Magarshack, vice-président du groupe et directeur général de la division Central CAD de STMicroelectronics. « Il y a 18 mois, nous avons décidé de collaborer avec Mentor et Sierra afin d’adresser les discontinuités critiques que nous avions identifiées dans le flot de conception : faible consommation, gestion de la variabilité des paramètres technologiques et gestion des contraintes de fabrication, etc. Nous avons été très impressionnés par la qualité des résultats de ce partenariat, qui nous permet d'intégrer des données relatives à la production, à la phase de synthèse physique et de routage. »

Olympus-SoC, produit phare de Sierra, propose des technologies novatrices pour les procédés 65 et 45 nm. Il fournit une nouvelle génération de système de placement-routage permettant de gérer simultanément pour une même puce, les variations de processus lithographiques, les jeux de paramètres technologiques et les modes de fonctionnement. L'architecture du routeur de Sierra est à la base du produit Olympus-SoC. Elle contient une analyse de timings intégrant les variations de paramètres technologiques, un moteur d’optimisation et de modélisation lithographique afin de prendre en compte les effets OPC et RET tôt dans le cycle de conception. Cette architecture permet ainsi d’accélérer le cycle de développement pour les règles technologiques complexes. Elle est capable de gérer simultanément de multiples jeux de paramètres technologiques et modes de fonctionnement différents, garantissant une puce optimisée sans marge inutile.

Mentor Graphics continuera à commercialiser et à promouvoir les produits de Sierra par le biais de ses filiales mondiales de ventes et de support.

Après cette acquisition, Mentor prévoit un revenu par action dilué non GAAP compris entre 0,06 et 0,08 dollar pour le deuxième trimestre 2008, soit une baisse de 0,02 dollar par rapport aux précédentes prévisions. Pour l'exercice fiscal clôturé au 31 janvier 2008, la société prévoit un effet neutre (voire légèrement positif) pour l'acquisition. L'impact en termes de bénéfice net GAAP ne pourra être établi qu'après finalisation de l'acquisition, mais les charges GAAP non numéraires résultant de l'acquisition devraient entraîner des baisses plus importantes dans le bénéfice net GAAP que dans le bénéfice net non GAAP. Mentor présentera l'évaluation GAAP complète avec les prévisions du deuxième trimestre fiscal 2008. Comme pour la précédente présentation, le bénéfice net non GAAP exclut l'amortissement de l'actif incorporel acheté (qui inclut la technologie, le carnet de commandes, les noms commerciaux, les relations avec les clients et les contrats des employés). Le bénéfice net non GAAP exclut en outre les frais des travaux de R&D en cours, les dépenses spéciales et les dépenses de rémunération des actions.

Discussion of Non-GAAP Financial Measures
Mentor Graphics management evaluates and makes operating decisions using various performance measures. In addition to our GAAP results, we also consider adjusted gross margin, operating margin and net income (loss), which we refer to as non-GAAP gross margin, operating margin and net income (loss), respectively. These non-GAAP measures are derived from the revenues of our product, maintenance and services business operations and the costs directly related to the generation of those revenues, such as cost of revenue, research and development, sales and marketing and general and administrative expenses, that management considers in evaluating our ongoing core operating performance. These non-GAAP measures exclude amortization of purchased intangible assets, merger and acquisition charges, special charges, equity plan-related compensation expenses and charges and gains which management does not consider reflective of our core operating business.

Purchased intangible assets consist primarily of purchased technology, backlog, trade names, customer relationships and employment agreements. Merger and acquisition charges represent in-process research and development charges related to products in development that had not reached technological feasibility at the time of acquisition. Special charges consist of post-acquisition rebalance costs including severance and benefits, excess facilities and asset-related charges, and also include strategic reallocations or reductions of personnel resources. Equity plan-related compensation expenses represent the fair value of all share-based payments to employees, including grants of employee stock options, as required under SFAS No. 123 (revised 2004), “Share-Based Payment” (SFAS 123R). For purposes of comparability across other periods and against other companies in our industry, non-GAAP net income (loss) is adjusted by the amount of additional taxes or tax benefit that the company would accrue using a normalized effective tax rate applied to the non-GAAP results.

In certain instances our GAAP results of operations may not be profitable when our corresponding non-
GAAP results are profitable or vice versa. The number of shares on which our non-GAAP EPS is calculated may therefore differ from the GAAP presentation due to the anti-dilutive effect of stock options in a loss situation.

Non-GAAP gross margin, operating margin and net income (loss) are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. Moreover, they should not be considered as an alternative to any performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity. We present non-GAAP gross margin, operating margin and net income (loss) because we consider them to be important supplemental measures of our operating performance and profitability trends, and because we believe they give investors useful information on period-to-period performance as evaluated by management.

Management excludes from its non-GAAP measures certain recurring items to facilitate its review of the comparability of the company's core operating performance on a period-to-period basis because such items are not related to the company's ongoing core operating performance as viewed by management. Management considers our core operating performance to be that which can be affected by our managers in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Management uses this view of its operating performance for purposes of comparison with its business plan and individual operating budgets and allocation of resources. Additionally, when evaluating potential acquisitions, management excludes the items described above from its consideration of target performance and valuation. More specifically management adjusts for the excluded items for the following reasons:

  • Amortization charges for our purchased intangible assets are inconsistent in amount and frequency and are significantly impacted by the timing and magnitude of the company's acquisition transactions. We therefore consider our operating results without these charges when evaluating our core performance. Generally, the most significant impact to inter-period comparability of the company's net income (loss) is in the first twelve months following the acquisition.
  • Special charges are primarily severance related and are due to the company's reallocation or reduction of personnel resources driven by modifications of business strategy or business emphasis and by assimilation of acquired businesses. These costs are originated based on the particular facts and circumstances of business decisions and can vary in size. Special charges also include excess facility and asset-related restructuring charges. These charges are not specifically included in the company's annual operating plan and related budget due to the rapidly changing technology and competitive environment in our industry. We therefore exclude them when evaluating our managers' performance internally.
  • Merger and acquisition charges are in-process R&D charges, which are largely disregarded as acquisition decisions are made and which often result in charges that vary significantly in size and amount. Management excludes these charges when evaluating the impact of an acquisition transaction and our ongoing performance.
  • Management supplementally considers performance without the impact of stock-based compensation charges and believes this information is useful to investors to compare our performance to prior periods before SFAS 123R and to the performance of other companies in our industry who present non-GAAP results adjusted to exclude stock compensation expense. We view stock-based compensation as a key element of our employee retention and long-term incentives, not as an expense that should be an element of evaluating core operations in any given period. We therefore exclude these charges for purposes of evaluating our core performance.
  • Income tax expense (benefit) is adjusted by the amount of additional tax expense or benefit that we would accrue if we used non-GAAP results instead of GAAP results in the calculation of our tax liability, taking into consideration the company's long-term tax structure. We use a normalized effective tax rate of 17%, which reflects the weighted average tax rate applicable under the various tax jurisdictions in which the company operates. This non-GAAP weighted average tax rate is subject to change over time for various reasons, including changes in the geographic business mix and changes in statutory tax rates.

Non-GAAP net income (loss) also facilitates comparison with other companies in our industry, which use similar financial measures to supplement their GAAP results. However, non-GAAP net income (loss) has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. In the future the company expects to continue to incur expenses similar to the non-GAAP adjustments described above and exclusion of these items in our non-
GAAP presentation should not be construed as an inference that these costs are unusual, infrequent or nonrecurring. Some of the limitations in relying on non-GAAP net income (loss) are:

  • Amortization of purchased intangibles, though not directly affecting our current cash position, represents the loss in value as the technology in our industry evolves, is advanced or is replaced over time. The expense associated with this loss in value is not included in the non-GAAP net income (loss) presentation and therefore does not reflect the full economic effect of the ongoing cost of maintaining our current technological position in our competitive industry, which is addressed through our research and development program.
  • The company regularly engages in acquisition and assimilation activities as part of its ongoing business and therefore we will continue to experience special charges and merger and acquisition charges on a regular basis. These costs also directly impact available funds of the company.
  • The company’s stock option and stock purchase plans are important components of our incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future under SFAS 123R.
  • The company's income tax expense (benefit) will be ultimately based on its GAAP taxable income and actual tax rates in effect, which often differ significantly from the 17% rate assumed in our non-GAAP presentation.
  • Other companies, including other companies in our industry, may calculate non-GAAP net income (loss) differently than we do, limiting its usefulness as a comparative measure.

A propos de Mentor Graphics
Mentor Graphics Corporation (Nasdaq : MENT) est l'un des principaux fournisseurs mondiaux de solutions de conception électronique, pour le matériel et le logiciel, offrant des produits, des services de conseil et une assistance technique reconnue aux sociétés internationales les plus performantes du monde dans le domaine de l'électronique et des semi-conducteurs. Fondée en 1981, la société a réalisé un chiffre d'affaires d’environ 800 millions de dollars américains au cours des 12 derniers mois et emploie environ 4 200 personnes dans le monde. Le siège social mondial est situé 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. Site Web : http://www.mentor.com/.

Mentor Graphics et Calibre sont des marques déposées de Mentor Graphics Corporation. Tous les autres noms de sociétés ou de produits sont les marques déposées ou les marques commerciales de leurs propriétaires respectifs.

Statements in this press release regarding the company’s guidance for future periods constitute “forward-looking” statements based on current expectations within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: (i) the company’s ability to successfully offer products and services that compete in the highly competitive EDA industry; (ii) discounting of products and services by competitors, which could force the company to lower its prices or offer other more favorable terms to customers; (iii) reductions in the spending on the company’s products by its customers due to cyclical downturns; (iv) changes in accounting or reporting rules or interpretations, limitations of reparation of earnings; (v) the impact of tax audits by the IRS or other taxing authorities, or changes in the tax laws, regulations or enforcement practices where the company does business; (vi) effects of the increasing volatility of foreign currency fluctuations on the company’s business and operating results; (vii) effects of unanticipated shifts in product mix on gross margin; (viii) effects of customer seasonal purchasing patterns and the timing of significant orders may negatively or positively impact the company’s quarterly results of operations; and (ix) weakness in the US or other economies, all as may be discussed in more detail under the heading “Risk Factors” in the company’s most recent Form 10-K or Form 10-Q. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. In addition, statements regarding guidance do not reflect potential impacts of mergers or acquisitions that have not been announced or closed as of the time the statements are made. Mentor Graphics disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements to reflect future events or developments.