WILSONVILLE, OR – Mentor Graphics announced record fourth quarter revenue of $221.3 million, up 3% from the prior fourth quarter. Bookings were up more than 5% from Q4 2004.

"We were pleased to see continued growth in bookings in the fourth quarter of 2005, especially considering the tough comparison to last year's fourth quarter growth of more than 35%,"  Walden C. Rhines, chairman and CEO, said in a press release. "Renewals showed strong growth, with contract values up nearly 30% over prior contract levels. Mentor's book-to-bill ratio was positive for the year, and the fourth quarter was the highest quarterly book-to-bill ratio since 1996."

Three of the four major product categories set quarterly and annual bookings records. Compared to Q4 2004, bookings grew 50% in Integrated Systems Design, 15% in IC Design to Silicon and 20% in New and Emerging.

Mentor's Questa verification platform, launched in May, was installed in over 1,000 seats installed by the fourth quarter. TestKompress bookings more than doubled during the year, while automotive products grew 40%. Strength in FPGA-related products like synthesis and I/O Designer helped increase bookings in the Integrated Systems Design category.

Calibre resolution enhancement technology continued to expand with annual bookings growth of 25%. Calibre DFM bookings grew 1000% over 2004 thanks to two new product launches.

Mentor's automotive solution was adopted at Shanghai Motors. The resulting orders were the largest Mentor has ever received from China.