-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ReyQsVwmnY+ewgsnTwMpyjpoZ2uWDU11fyxJLgjAq8OtaUtDNwFZs3LcsEQBsKam 1s14wu1AbCSjt9r3/4bXyQ== 0001047469-98-037069.txt : 19981014 0001047469-98-037069.hdr.sgml : 19981014 ACCESSION NUMBER: 0001047469-98-037069 CONFORMED SUBMISSION TYPE: DFAN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981013 SROS: NASD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: QUICKTURN DESIGN SYSTEMS INC CENTRAL INDEX KEY: 0000914252 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 770159619 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A SEC ACT: SEC FILE NUMBER: 000-22738 FILM NUMBER: 98724550 BUSINESS ADDRESS: STREET 1: 55 W TRIMBLE ROAD CITY: SAN JOSE STATE: CA ZIP: 951311013 BUSINESS PHONE: 4089146000 MAIL ADDRESS: STREET 1: 55 W TRIMBLE ROAD CITY: SAN JOSE STATE: CA ZIP: 95131-1013 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: MENTOR GRAPHICS CORP CENTRAL INDEX KEY: 0000701811 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 930786033 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A BUSINESS ADDRESS: STREET 1: 8005 SW BOECKMAN RD CITY: WILSONVILLE STATE: OR ZIP: 97070 BUSINESS PHONE: 5036857000 DFAN14A 1 DFAN14A SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant / / Filed by a Party other than the Registrant /X/ Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Section240.14a-11(c) or Section240.14a-12 QUICKTURN DESIGN SYSTEMS, INC. - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) MENTOR GRAPHICS CORPORATION - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): /X/ No fee required. / / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. 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(1) Amount Previously Paid: ----------------------------------------------------------------------- (2) Form, Schedule or Registration Statement No.: ----------------------------------------------------------------------- (3) Filing Party: ----------------------------------------------------------------------- (4) Date Filed: ----------------------------------------------------------------------- [MENTOR GRAPHICS LOGO] The Power to Create -Trademark- BT ALEX.BROWN 1998 TECHNOLOGY CONFERENCE Greg Hinckley Senior Vice President COO/CFO PRELIMINARY 3Q RESULTS - - Estimated EPS of $0.12 exceeds First Call analyst consensus estimates by 20% - - Accelerating bookings paced by software in North America and by emulation in Europe and Asia - - Flat revenue, in quarter, year-over-year - - Best gross margin in the 1990's Q2 HIGHLIGHTS - - Best 2Q order rate this decade - - Record backlog - - 4th consecutive quarter of increasing gross margins - - New product revenue up 50% - - Major consulting engagements at Motorola and Toshiba QUARTERLY EDA SALES GROWTH VERSUS IC SALES GROWTH [GRAPH] [Figures in percentages] IC Growth EDA Growth --------- ---------- Q195 47 18 Q295 49 21 Q395 41 23 Q495 39 22 Q196 -13 23 Q296 -13 23 Q396 -17 15 Q496 -16 15 Q197 -10 13 Q297 10 13 Q397 12 23 Q497 11 23 SOURCE: HAMBRECHT & QUIST MEETING THE CHALLENGE "NEC Corp. chip boss Hajime Sasaki's prescription...accelerate chip designs, better use fab capacity, squeeze expense out of the budget and dream up system-on-chip proposals for key customers." EE TIMES QUICKTURN ACQUISITION TRANSACTION SUMMARY Offer Price: $12.125 per share Premium: 51.6% Consideration: 100% cash fully financed Total $216 million Consideration: - Balance sheet financed - Bank financed EDA INDUSTRY ANALYST VIEWS "Quickturn should consider the offer as a way to revive its sluggish recent performance." - RITA GLOVER, PRESIDENT & PRINCIPAL ANALYST EDA TODAY MARKET RESEARCH 8/14/98 No, this isn't about the lawsuit... The acquisition of Quickturn would not only give Mentor the vertical market strength, acceleration/emulation to RTL Simulation, but would make them the powerhouse in horizontal space, RTL Simulation to acceleration/emulation to hardware/software coverification to Microtec, their embedded software tool division. Not a bad package!" - GARY SMITH, CHIEF EDA ANALYST, DATAQUEST WORLDWIDE ELECTRONIC DESIGN AUTOMATION 8/17/98 EDA INDUSTRY ANALYST VIEWS (EE Times 8/17/98) "Brilliant" - GARY SMITH, CHIEF EDA ANALYST, DATAQUEST WORLDWIDE ELECTRONIC DESIGN AUTOMATION 8/17/98 QUICKTURN ACQUISITION CURRENT STATUS - - October 9 - Hearing on motion to dismiss - - October 19 - Trial on antitakeover defenses - - October 29 - Date Called By Mentor Graphics for Special Stockholders Meeting WHAT IS EDA? Software tools used by all electronic engineers to design the world's ICs and electronic systems [PHOTOGRAPHS] CHALLENGES REQUIRE FOCUS System Verification Mentor Intellectual Property --------------------------------------------------------------------------- Design Services Cadence Physical Design - ------------------------------------------------------------------------------- Design Creation Synopsys Logic Synthesis --------------------------------------------------------------------------- FPGA DESIGN Renoir ModelSim Leonardo Spectrum A STRATEGIC OPPORTUNITY - - FPGA DESIGN STARTS RAPIDLY INCREASING - 100K FPGA design starts/year - 10K ASIC design starts/year - - AGGRESSIVE TECHNOLOGY ROADMAPS - Million gate, 150 MHz by end of 1998 Data collected by Model Technology, Inc. from FPGA/PLD vendors, EDA vendors and customers INCREASING GATE COUNT REQUIRES NEW TOOLS [Picture showing growing FPGA and ASIC gate counts] Data collected by Model Technology, Inc. from FPGA/PLD vendors, EDA vendors and customers HDL FPGA TOOLS MARKET TO DOUBLE IN TWO YEARS [GRAPH] [Revenue figures in millions] 1998 1999 2000 ---- ---- ---- Capture 15 20 25 Simulation 30 40 50 Synthesis 45 60 90 Total 90 120 165 Estimates based on Dataquest, FPGA/PLD vendors, Mentor Graphics, Exemplar and MTI sources Mentor Graphics Owns 50% of the FPGA/PLD Design Market MENT: A VALUE OPPORTUNITY
10-7-98 Company Share Price Market Cap/Revenue - --------------------------------------------------------------------------- Mentor Graphics $6.56 0.9 Cadence $20.63 4.4 Synopsys $29.56 2.9 Avant! $11.63 2.0
FPGA DESIGN A Market Creating New HDL Users - - Increasing Densities Driving the Need for HDL-Based FPGA Designs - - Dataquest Estimates 24K new seats in 1998 - Xilinx: 10K new Xilinx HDL users/year (50% of all new users) - - Major FPGA Vendors Investing in EDA Integration and Alliances [MENTOR GRAPHICS LOGO] The Power to Create-Trademark- -----END PRIVACY-ENHANCED MESSAGE-----