UPDATE 1-Mentor Graphics Q1 loss narrows; warns of wider Q2 loss

* Q1 bookings rise 25 pct

* Sees wider-than-expected Q2 loss

* Sees lower renewal rates in Q2

* Shares fall 14 pct in pre-mkt trade

May 29 (Reuters) - Chip-design software maker Mentor Graphics Corp (MENT.O) reported a narrower first-quarter loss as bookings picked up 25 percent, but forecast a wider-than-expected loss for the second quarter due to slow renewal rates.

"Our guidance for the second quarter is the result of a lower renewal portfolio for the quarter, and an expectation that in this environment, customers will not renew early," Mentor's President Gregory Hinckley said in a statement.

For the first quarter, the company reported a net loss of about $13 million, or 14 cents a share, compared with a loss of $25.5 million, or 28 cents a share a year ago. Excluding items, Mentor posted a profit of 9 cents a share.

Total revenue rose 8 percent to $193.8 million.

Analysts on average had expected a profit of 7 cents a share, excluding special items, on revenue of $201.8 million, according to Reuters Estimates. [ID:nWNAB4591]

Shares of the Wilsonville, Oregon-based company fell almost 14 percent in trading before the bell. They closed at $6.44 Thursday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Gopakumar Warrier)