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In the electronic design automation software business, the thinking had always been that in chip industry downturns, the last thing semiconductor companies will cut is spending on developing new products, which they can’t do without EDA software. But given the depth of the current decline, that theory has been tossed out the window. For illustration, look no further than the current sell-off in both Mentor Graphics (MENT) and Cadence Design Systems (CDNS).

Of course, you have to keep in mind that Cadence remains a mess. The company has fired most of its management team, is searching for a ne

Mentor Graphics (MENT) this morning posted results for its fiscal third quarter ended October 31 that were in line with its recently revised guidance. The company posted revenue of $184.9 million and a non-GAAP loss of 4 cents a share; the guidance had been for $185 million and a loss of 5 cents.

Mentor also repeated its guidance for both the January quarter and the April quarter.

For the FY Q4 ending January 31, the provider of chip-design software still sees revenue of $270 million and non-GAAP profits of 55 cents a share. For FY Q1 ending April, the guidance remains revenue of $200 million

Mentor Graphics (MENT) this morning said slowing customer activity has reduced the outlook for the second half of its fiscal year. For FY Q3 ended October 31, the company now sees revenue of $185 million with a non-GAAP loss of 5 cents a share. Street expectations had been for revenue of $215.1 million and profits of 15 cents a share.

For the fiscal fourth quarter ending January 31, the provider of chip-design software sees revenue of $270 million and non-GAAP profits of 55 cents a share. The Street had been looking for $318.6 million and 93 cents.

In a statement, CEO Walden Rhines said that

Shares of $3.44 billion (market cap) semiconductor design software maker Synopsys (SNPS), whose peer, Mentor Graphics (MENT) reported surprisingly good results this morning, is not fairing quite as well after hours. Synopsys reported sales and profit for its fiscal third quarter ended July 31 that beat analysts’ estimates, but the forecast sales and profit for 4Q are both below estimates.

Hence, the shares are down $1.29, or 5%, at $22.85 in after-hours trading after rising 3.6% during the regular session.

Sales rose 13% to $344.1 million, the company said, ahead of an average $339.6 million

It’s been a tough week for computer-assisted chip design software maker Mentor Graphics (MENT), whose shares plunged last Friday when suitor Cadence Design Systems (CDNS) withdrew a hostile bid for the company. But this morning, things are a little nicer, with Mentor Graphics easily beating Street estimates for its fiscal 2Q ended July 31. The company turned in $182.4 million in sales, way ahead of the $174.5 million analysts were looking for, and a 2-cent per share loss, vastly better than the 12-cent loss analysts were looking for. The forecast for this quarter is light on the profit side