ARM Holdings PLC announces 3rd Quarter Results

CAMBRIDGE, UK -- (MARKET WIRE) -- Oct 27, 2009 --

EMBARGOED until 7.00am GMT 27 October 2009

ARM HOLDINGS PLC REPORTS RESULTS FOR THE THIRD QUARTER AND NINE
MONTHS ENDED 30 SEPTEMBER 2009

A conference call discussing these results will be webcast today at
8:30 GMT at 
www.arm.com/ir


CAMBRIDGE, UK, 27 October 2009-ARM Holdings plc ((LSE: 
ARM); (NASDAQ: 
ARMH)), the world's leading semiconductor intellectual property
supplier, announces its unaudited financial results for the third
quarter and nine months ended 30 September 2009.


Key Highlights

. ARM has continued to outperform the semiconductor industry and gain
  market share

. Strong processor licensing for applications such as smartphones,
  mobile computing and microcontrollers

. ARM's advanced physical IP at 28nm was licensed to a major foundry
  and a fabless semiconductor company

. Sequentially improving operating margin to 31.7% and strong quarterly
  net cash generation of GBP28.2m

. Reiterating guidance: ARM's full-year 2009 dollar revenues to be at
  least in line with current market expectations 


Q3 Financial Summary               Normalised*             IFRS         
                           Q3 2009  Q3 2008  %Change   Q3 2009  Q3 2008
Revenue (USDm)               123.0   134.4      -8%      123.0   134.4 
Revenue (GBPm)                75.2    71.7      +5%       75.2    71.7  
Operating margin             31.7%   33.0%                9.6%    20.3% 
Profit before tax (GBPm)      24.3    24.9      -2%        7.7    15.8  
Earnings per share (pence)    1.34    1.38      -3%       0.53    0.88  
Net cash generation (GBPm)**  28.2    22.5    
Effective revenue fx         
rate (USD/GBP)                1.64    1.88
YTD Financial Summary              Normalised*             IFRS         
                               YTD     YTD   %Change       YTD     YTD
                              2009    2008                2009    2008
Revenue (USDm)               349.4   396.8     -12%      349.4   396.8 
Revenue (GBPm)               219.8   204.6      +7%      219.8   204.6 
Operating margin             28.8%   31.8%               11.8%   18.3% 
Profit before tax (GBPm)      64.5    67.5      -5%       27.1    40.0  
Earnings per share (pence)    3.66    3.73      -2%       1.79    2.05  
Net cash generation (GBPm)**  53.3    62.7  
Effective revenue fx          
rate (USD/GBP)                1.59    1.94    



Progress on key growth drivers

  . Growth in mobile applications

      - 13 new processor licenses signed for high-performance mobile
        computers and smartphones

      - ARM licenses 2GHz dual Cortex-A9 processor for mobile computing
        applications

  . Growth beyond mobile

      - 15 new processor licenses signed, including four next-
        generation processors, for a broad range of markets including
        digital TV, microcontrollers, hard disk drives and networking
        applications

      - Strong sequential growth in all target markets including 75%
        sequential increase in shipments of ARM-technology based
        microcontrollers due to market share gains and inventory
        restocking 

  . Growth in new technology outsourcing 

      - First leading fabless semiconductor company licenses ARM's 28nm
        physical IP and, shortly after the quarter end, GLOBALFOUNDRIES
        also licenses 28nm physical IP 


Warren East, Chief Executive Officer, said:"Q3 was a good quarter for ARM. Despite pressure on customers' R&D
budgets we are pleased that continuing strong demand from industry
leaders, combined with our broadest range of products and effective use
of licensing models, has delivered a record number of processor
licenses. We are particularly encouraged by the licensing of ARM's next
generation processor technology, and by the first license to a leading
fabless semiconductor company of ARM's advanced 28nm physical IP. Such
agreements are the drivers of ARM's long-term royalty growth, and as
ARM becomes the technology of choice in smart, connected and low-power
consumer electronic devices we continue to gain market share.  

Once again we have demonstrated the resilience in the ARM business
model; our improving revenue and disciplined cost control has delivered
a sequential improvement in margins and profitability, as well as a
high level of cash generation."
Outlook

Going into the final quarter of 2009, ARM is encouraged by the
improving confidence in our customer-base, and we reiterate guidance
that we expect group dollar revenues for the full year to be at least
in line with current market expectations. 

Although, in the short term, the trajectory of consumer demand for
electronic devices remains unclear, looking ahead through 2010, ARM is
well-positioned to take advantage of the generally
anticipated improvements in the semiconductor industry.  


Q3 2009 - Revenue     Revenue (USDm)***         Revenue (GBPm)        
Analysis                                                    

                       Q3     Q3      %          Q3     Q3     %     
                     2009   2008   Change      2009   2008   Change
PD                        
Licensing            30.9   35.5     -13%      18.5   19.2          -4%      
Royalties                        53.1      55.2            -4%            32.3      29.2            11%      
Total  PD                          84.0      90.7            -7%            50.8      48.4              5%        
PIPD                                
Licensing                          8.8      10.4          -16%              5.6        5.6              1%        
Royalties(1)                    9.2      11.0          -16%              5.7        5.9            -4%    
Total  PIPD                      18.0      21.4          -16%            11.3      11.5            -2%      
Development  Systems    14.0      14.6            -4%              8.7        7.8            11%      
Services                            7.0        7.7            -9%              4.4        4.0            11%      
Total  Revenue              123.0    134.4            -8%            75.2      71.7              5%        

(1)  Includes  catch-up  royalties  in  Q3  2009  of  USDnil  million  and  in  Q3
2008  of  USD1.7m  (GBP0.9m).


YTD  2009  -  Revenue            Revenue  (USDm)***                Revenue  (GBPm)                  
Analysis                                                                                                    

                                            YTD        YTD                %              YTD        YTD                %          
                                          2009      2008      Change            2009      2008      Change
PD                                  
Licensing                        92.4    102.1            -9%            55.0      52.8              4%        
Royalties                      144.7    161.0          -10%            94.1      83.1            13%      
Total  PD                        237.1    263.1          -10%          149.1    135.9            10%      
PIPD                                          
Licensing                        26.7      34.8          -23%            16.2      17.9            -9%      
Royalties(1)                  25.1      29.7          -15%            16.1      15.4              5%        
Total  PIPD                      51.8      64.5          -20%            32.3      33.3            -3%      
Development  Systems    38.8      44.9          -14%            25.1      23.1              9%        
Services                          21.7      24.3          -11%            13.3      12.3              8%        
Total  Revenue              349.4    396.8          -12%          219.8    204.6              7%        
(1)  Includes  catch-up  royalties  in  YTD  2009  of  USD4.2m  (GBP2.6m)  and
in  YTD  2008  of  USD3.6m  (GBP1.9m).


*        Normalised  figures  are  based  on  IFRS,  adjusted  for
          acquisition-related,  share-based  compensation  and  restructuring
          charges  and  profit  on  disposal  and  impairment  of
          available-for-sale  investments.  For  reconciliations  of  IFRS
          measures  to  normalised  non-IFRS  measures  detailed  in  this
          document,  see  notes  4.1  to  4.27.

**      Before  dividends  and  share  buybacks,  net  cash  flows  from  share
          option  exercises,  disposals  of  available-for-sale  investments  and
          acquisition  consideration  -  see  notes  4.14  to  4.18.

***    Dollar  revenues  are  based  on  the  group's  actual  dollar  invoicing,
          where  applicable,  and  using  the  rate  of  exchange  applicable  on  the
          date  of  the  transaction  for  invoicing  in  currencies  other  than
          dollars.  Approximately  95%  of  invoicing  is  in  dollars.

****  Each  American  Depositary  Share  (ADS)  represents  three  shares.



CONTACTS:        


Sarah  West/Daniel  Thole      Tim  Score/Ian  Thornton    

Brunswick                                  ARM  Holdings  plc    

+44  (0)207  404  5959              +44  (0)1223  400400


Click  on,  or  paste  the  following  link  into  your  web  browser,  to  view  the  associated  PDF  document.


  http://www.rns-pdf.londonstockexchange.com/rns/4044B_1-2009-10-26.pdf  

                                        This  information  is  provided  by  RNS
                    The  company  news  service  from  the  London  Stock  Exchange

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