UPDATE 1-Mentor Graphics Q1 results miss Street; Q2 view weak

* Q1 adj. loss $0.02/shr vs est loss $0.01/shr

* Q1 rev $180.6 mln, down 7 pct

* Sees Q2 results below market view

May 28 (Reuters) - Chip-design software maker Mentor Graphics Corp (MENT.O) posted a wider-than-expected quarterly loss, hurt by lower system and software sales and forecast second-quarter results below market estimates.

For the current quarter, Mentor Graphics, which competes with companies like Synopsys Inc (SNPS.O) and Cadence Design Systems Inc (CDNS.O), forecast break-even earnings per share to a loss of 5 cents a share, excluding special items, on revenue of $180 million.

Analyst on average were looking for earnings of 2 cents a share on revenue of $192.75 million, according to Thomson Reuters I/B/E/S.

For the first quarter the company posted a loss of $23 million, or 22 cents a share, compared with a loss of $13 million, or 14 cents a share, last year.

Revenue fell 7 percent to $180.6 million as system and software sales slid 16 percent.

Excluding special items the company posted a loss of 2 cents a share.

Analysts, on average were expecting a loss of 1 cent a share, excluding special items, on revenue of $182.8 million.

Shares of Mentor Graphics were up 7 percent at $9.65 in pre-market trade Friday, a day after activist investor Carl Icahn reported a 6.86 percent stake in the company and said he intends to discuss ways to maximize shareholder value with the management. [ID:nSGE64Q0EZ]

The stock closed at $9.05 Thursday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Vyas Mohan)