UPDATE 1-Mentor Graphics Q4 profit dips, sees Q1 loss

* Q4 adjusted EPS of $0.35 inline with estimates

* Sees Q1 net loss of $0.08-$0.13/shr

* Sees Q1 adj EPS of $0.05-$0.10/shr vs estimate $-0.05

Feb 26 (Reuters) - Chip-design software maker Mentor Graphics Corp's (MENT.O) quarterly profit fell as its system and software segment posted lower revenue, and it also forecast a loss for the first quarter.

"Large accounts fared well in the quarter with modest growth in the company's top ten renewal contracts," Chief Executive Walden Rhines said in a statement. "This strength was significantly offset, however, by weakness in smaller transactions."

For the fourth quarter, the company posted a profit of $31.5 million, or 33 cents a shares, compared with $34.9 million, or 38 cents a share, a year earlier

Excluding items, the company earned 35 cents a share, which was inline with analysts' expectations.

Total revenue fell almost 15 percent to $242.6 million.

Analysts were expecting revenue of 243.1 million, according to Reuters Estimates.

Earlier this month, Mentor's rival in the electronic design automation (EDA) market and one-time bidder Cadence Design Systems Inc (CDNS.O) posted a large quarterly loss hurt by an impairment charge.

Shares of the Wilsonville, Oregon-based company, which have lost more than half their market value over the last year, closed down 5.57 percent at $4.07 Thursday on Nasdaq.

For alerts, please double click on [ID:nWNAB7746] (Reporting by Sayantani Ghosh in Bangalore;)