Mentor Graphics and its non-GAAP earnings
Mentor Graphics and its non-GAAP earnings
Mentor Graphics Corporation, a supplier of electronic design automation systems, just announced its second quarter results. According to the earnings press release, the company reported revenues of $182.6 million, non-GAAP earnings per share of $0.02, and a GAAP loss per share of $0.22. Elsewhere in the press release the company says that non-GAAP earnings excludes the following items incurred during the quarter: equity-based (noncash) employee compensation; severance and related employee rebalancing costs; fees paid to consultants; losses related to the abandonment of excess facility space and a facility fire; interest expense; along with other assorted items.
There is no standard definition of non-GAAP earnings. Each firm is permitted to construct its own definition for press release purposes. As a result, the Securities and Exchange Commission requires firms such as Mentor Graphics to provide a reconciliation of GAAP and non-GAAP earnings any time a non-GAAP measure is presented.
Required:
1. Which of the excluded items represent ongoing costs of running the business and which are one-time special costs?
2. How might analysts and investors benefit when firms call attention to their non-GAAP earnings?
3. How might analysts and investors be harmed?”
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
