Mentor Graphics Rallies On Beat-And-Raise FY Q2

Mentor Graphics (MENT) shares are trading higher after hours on better-than-expected results for its fiscal second quarter ended July 31.

For Q2, the company reported revenue of $182.6 million, about flat with a year ago, and sharply ahead of the Street at $165.8 million. Mentor posted a non-GAAP profit of 2 cents a share; the Street had been expecting a loss of 10 cents.

For Q3, Mentor sees revenue of $183 million and a non-GAAP profit of a penny a share. The Street had been expecting $179.6 million and a loss of 2 cents.

“Though the business climate is still difficult, we did see strong sequential increases in consulting and distributor bookings during the quarter, both signs we take as indicators of an improving customer environment,” CEO Walden Rhines said in a statement.

In late trading, the EDA software company’s shares are up 87 cents, or 11%, to $8.79.