The Processor Division (PD), formerly the original ARM prior to the Artisan acquisition, had revenues of $71 million, an increase of 15% compared to the same period last year and an increase of nearly 7% compared to the prior quarter. The Physical IP division (PIPD), the Artisan division established after the acquisition at the end of 2004, had revenues of $22.1 million, a decrease of almost 8% year over year, but an increase of 1.4% sequentially. The PD division accounted for 64% of revenue and the PIPD division for only 20%.
Warren East, Chief Executive Officer, said: "We have seen encouraging activity in both licensing and royalties this quarter… We continued to extend our market penetration across the span of digital products with royalty units increasing 47% compared to the same period last year. Q1's result further underpins our confidence that ARM will achieve another strong performance in 2006 in line with current market expectations."
Tim Score, Chief Financial Officer, added: "Year-on-year growth in revenue and earnings per share of 17% and 34% respectively, has again yielded strong cash generation in the quarter. With royalty revenues continuing to grow as a proportion of total revenues, operating margin and cash flow are expected to increase, leaving us well-placed both to invest in the innovative technology that drives future growth in licensing revenue and to continue the return of cash to shareholders through share buybacks and dividends."
On April 25, 2006 Ceva Inc. announced the results for the first quarter, the period ended March 31, 2006. Total revenue for the quarter was $8.1 million, a decrease of 19% from the $10 million in the same quarter a year earlier, but a 6% increase form the $7.6 million in the prior quarter. This was in the middle of the guidance range. Royalty revenue was $1.8 million, or 22% of total revenue, an increase of 3% compared to $1.7 million reported for the first quarter of 2005 and a decrease of 7% compared to $1.9 million reported for the fourth quarter of 2005. Revenue from services was $1.0 million, or 12% of total revenue, a decrease of 18% compared to $1.2 million for the first quarter of 2005 and a decrease of 16% compared to $1.2 million reported for the fourth quarter of 2005. License revenue was $5.3 million accounting for 66% of total revenue. This was a decrease about 25% year-over-year, but an increase of 15% sequentially. In the quarter, licensees shipped 48.7 millions units, an increase of 57% from the same quarter a year ago and an increase of 26% from the prior quarter. 23 millions of these units were covered by prepaid royalties.
Net loss for the quarter was $0.8 million, compared to net income of $0.6 million for the first quarter of 2005 and net loss of $0.1 million for the fourth quarter of 2005.
Gideon Wertheizer, Chief Executive Officer of CEVA, said: "We are encouraged by the financial results for the first quarter of 2006, which shows sequential revenue growth from the fourth quarter of 2005 derived from our strong product line. In the quarter we signed significant licensing agreements for our DSP cores with two leading companies, one in Europe and one in the United States, who plan to deploy our DSP cores in their mainstream high-volume applications. We also reached a major milestone with our innovative MobileMedia2000 video technology by demonstrating during the quarter a full silicon solution of DVD quality H.264 video for mobile applications."
On April 25, 2006 LogicVision, Inc. announced the results for the first quarter, the period ended March 31, 2006. Total revenue for the quarter was $2.3 million, a decrease of 36% from the $3.7 million a year earlier and a decrease for nearly 5% from the $2.5 million in the prior quarter. This was at the high end of guidance range. License revenue was $1.2 million, accounting for 52% of total revenue. This was a decrease of 55% from the first quarter last year, and down 8% from the prior quarter. Service revenue was $1.1 million, an increase of 48% year-over-year, and a decrease of 1.5% sequentially.
New orders received in the quarter totaled $3.3 million, of which $2.4 million is expected to be recognized as ratable revenue over the next 12 months. The company exited the quarter with a record backlog of $21 million up form $20 million at the end of the prior quarter.
Net loss for the quarter was $2.2 million, compared to a loss of $1.8 million a year earlier and essentially flat compared to the $2.5 million in the prior quarter.
James Healy, president and CEO of LogicVision, said: "This quarter, we are pleased to have achieved the highest first quarter bookings since 2002, and an increase of three times the bookings from a year ago. We entered the second quarter of 2006 with a record backlog. Our goal remains to achieve positive cash flow an profitability by the end of the year and we believe that we are on track to meet that goal."
On April 20, 2006 MIPS Technologies Inc. announced results for the third quarter of their 2006 financial year. Total revenue was $17.5 million, an increase of 4.2% from the $16.8 million in the same quarter a year ago and up 7% from the prior quarter. This is near the midpoint of the range given as guidance a quarter ago. Royalty revenue was $9.3 million accounting for 53% of total revenue. This was an increase of 8.4% year over year, and 4.5% sequentially. Contract revenue was $8.2 million accounting for 47% of total revenue. This was an increase of 4% year over year, and a 7% increase sequentially.
Net income for the quarter was $2.2 million. This is a drop of 44% from the $4 million in the same quarter last year, and a decrease of 7% compared to the prior quarter. Beginning in September 2005, the firm recognized equity-based compensation expense pursuant to the fair value method under SFAS 123R. This expense in the current quarter was $1.8 million
John Bourgoin, president and CEO said: "Revenues climbed to a five-year high, although they were slightly below our guidance. Licensing revenues were driven by our flagship products, as our cost-performance leadership is having increasing impact, especially in the digital television and DVD markets. Particularly noteworthy was a new agreement with ESS Technology, a global leader in DVD and Digital Video chip design."
In January 2006, MIPS announced the promotion of Mervin S. Kato to the position of chief financial officer. Mr. Kato, most recently vice president of finance and corporate controller. In February 2006, MIPS announced the appointment of Kate Hunt Rundle to the position of vice president, general counsel.
On May 2, 2006 Monolithic System Technology, Inc. (MoSys) reported the results for the first quarter, the period ended March 31, 2006. Total revenue for the quarter was $3.5 million, compared to $2.4 million in the fourth quarter of 2005 and $2.7 million recorded for the first quarter of 2005, up 31% and 47%, respectively. Total revenue for the quarter was in line with the Company's previously announced guidance range of $3.0 million to $4.0 million. License revenue was $1.3 million, accounting for 64% of total revenue. This was an increase of 87% year-over-year, and a 70% increase sequentially. Royalty revenue was $1.2 million, accounting for 36% of total revenue. This was a decrease of 14% year-over-year, but an 18% increase sequentially.
Net loss for the quarter was $974 thousand compared to net losses of $1.3 million in the same quarter a year ago and $1.1 million in the previous quarter.
Chet Silvestri, Chief Executive Officer of MoSys, commented: "We are pleased with the strong customer interest in our 1T-SRAM Technology and the progress we are making towards finalizing a number of 65nm agreements. The industry is moving very quickly to implement new designs in 65nm. Our high density memory technology is easily scalable to 65nm and is rapidly becoming the memory of choice for high volume consumer electronics applications. "
He continued, " We expect the average dollar amount of our licensing contracts to increase as our licensees look to us to provide larger memory size macros at advanced geometries. The number of royalty paying licensees is also trending upward as our licensees are more rapidly moving from the development phase to the production phase by utilizing our pre-configured macros to shorten their time-to-market. "