UPDATE 1-Mentor posts quarterly loss; sees better 2nd half

NEW YORK, May 22 (Reuters) - Software maker Mentor Graphics Corp (MENT.O) posted a quarterly loss on Thursday, meeting Wall Street's lowered expectations, and said near-term results would continue to fall.

But the company forecast full-year earnings and revenue at the top of analysts' estimates, and its shares rose in early trading.

Wilsonville, Oregon-based Mentor, whose software is used to design semiconductors, reported a first-quarter loss of $27.5 million, or 30 cents per share, compared with a narrow year-earlier profit of $290,000.

The loss reflects charges to write off royalties tied to the shutdown of its intellectual property division, $8.1 million to cover employee layoffs, $1.4 million to abandon facility leases, plus employee stock option expenses and acquisition-related costs.

Excluding these special items, Mentor said it lost 10 cents per share, compared with year-earlier profit of 12 cents. On that basis, the loss was in line with analysts' average forecast, according to Reuters Estimates.

"In a difficult environment, the company performed as we forecast," Mentor Chairman and CEO Walden Rhines said in a statement.

First-quarter revenue fell to $179.2 million from $194.5 million a year earlier but was well above the narrow range of analysts' forecasts of $170.0 million to $170.9 million, according to Reuters Estimates.

Mentor forecast second-quarter revenue of $173 million -- far below analysts' forecasts, which range from $186.0 million to $200.0 million, according to Reuters Estimates.

The company forecast a second-quarter loss of 10 cents to 15 cents per share, versus the profit of 3 cents that analysts had hoped to see.

But Mentor said it expects full-year revenue of $915.0 million, at the high end of Wall Street forecasts, which range from $873 million to $915 million, according to Reuters Estimates.

Mentor said this would result in a full-year profit, excluding one-time items, of $1.05 to $1.10 per share -- at the top of analysts' forecasts.

The company's shares were up 17 cents to $10.36 in morning Nasdaq trade. (Reporting by Eric Auchard; Editing by John Wallace)