Mentor Graphics Corp, Wilsonville, Oregon is drawing in its horns and has decided to concentrate on core businesses of integrated circuit design, electronic systems design, and concurrent engineering. The effect is to reduce its workforce worldwide by about 15% and expects to have to take a big one-time write-off – put at up to $12m – with its third quarter figures. It is to reduce substantially development of computer-aided software engineering, mechanical design and documentation products, and will instead work in partnership with companies including Cadre Inc, IDE Inc, Hewlett-Packard Co, Structural Dynamics Research Corp, Aries Technology Inc, Parametric Technology Corp, Interleaf Inc and Frame Technology Corp. It will retain Hewlett-Packard to provide hardware service on the workstations that it buys OEM from the Cupertinoer.The company reported a loss of $14.5m and the charge is expected to lead to a loss for the third quarter. Shares in Parametric Technology rose $1.625 to $34.75 on the news that Mentor would not after all be a competitor for its products, but a partner.
