ARM Holdings PLC Announces Final Results

CAMBRIDGE, UK -- (MARKET WIRE) -- Feb 02, 2010 --

ARM HOLDINGS PLC REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR
2009


CAMBRIDGE, UK, 2 February 2010-ARM Holdings plc announces its unaudited
financial results for the fourth quarter and full year ended 31
December 2009, reflecting resilient trading performance and further
progress in delivering ARM's strategy.



Q4 Financial Summary              Normalised*              IFRS
                           Q4 2009  Q4 2008 % Change  Q4 2009  Q4 2008
Revenue ($m)                 140.0    149.4    -6%      140.0    149.4
Revenue (GBPm)                85.2     94.4   -10%       85.2     94.4
Operating margin              37.3%    34.6%             23.0%    23.8%
Profit before tax (GBPm)      32.3     33.4    -3%       20.1     23.2
Earnings per share (pence)    1.79     1.94    -8%       1.32     1.35
Net cash generation 
(GBPm)**                      30.7     28.3                   
Effective revenue fx 
rate($/GBP)                   1.64     1.58                   



FY Financial Summary             Normalised*                IFRS

                           FY 2009  FY 2008 % Change  FY 2009  FY 2008
Revenue ($m)                 489.5    546.2    -10%      489.5   546.2
Revenue(GBPm)                305.0    298.9     +2%      305.0   298.9
Operating margin              31.2%    32.7%              15.0%   20.1%
Profit before tax (GBPm)      96.8    101.0     -4%       47.3    63.2
Earnings per share (pence)    5.45     5.66     -4%       3.11    3.39
Net cash generation 
(GBPm)**                      86.1     93.1                   
Full year dividend (pence)    2.42     2.20    +10%            
Effective revenue fx 
rate($/GBP)                   1.60     1.83                   



Progress against strategy in Q4

* Growth in mobile applications
    o ARM opportunity increases as smartphone growth continues and first
      ARM® technology-based mobile computers introduced
    o 6 processor licenses signed for mobile phone and computing
      applications
    o ARM achieves an average of 2.4 chips per phone as capability of
      mobile phones increases

* Growth beyond mobile
    o ARM increases share in target markets such as consumer electronics
      and embedded products
    o Strong sequential growth with microcontrollers up 60% and
      smartcards up 100%
    o 19 processor licenses signed for a broad range of applications
      including automotive, microcontrollers, printers and smartcards

* Growth in new technology outsourcing
    o Leading semiconductor companies continue to license ARM's physical
      IP and multimedia IP including:   * GLOBALFOUNDRIES licensed ARM's advanced 28nm physical IP
         * Samsung licensed ARM's Mali graphics processor for use in
           next generation consumer products



Warren East, Chief Executive Officer, said:"We are pleased that in Q4 ARM has continued to outperform the
semiconductor industry as we gain market share. Throughout 2009 we
demonstrated the resilience of the ARM business model in a challenging
trading environment. Despite industry dollar revenues being down about
20% in the relevant period, ARM market share gains resulted in dollar
revenues being down 10% with on-going financial discipline maintaining
normalised operating margins over 30% and delivering strong cash
generation.

The company is well-placed for this strong performance to continue as
leading semiconductor manufacturers are increasingly designing ARM
technology into their products, and as ARM technology becomes ever more
pervasive in markets with long-term structural growth such as
smartphones, digital TVs and microcontrollers. Recently, Infineon and
STMicroelectronics have announced the intention to use, for the first
time, ARM processors in their smartcard and digital TV/set-top-box
product lines respectively."



Outlook

It is generally anticipated that the semiconductor industry will see
improving conditions in 2010 compared to 2009. The rate of improvement
is still unclear as it will be influenced by consumer confidence and
the broader macro-economic environment. Reflecting these generally
anticipated improvements in the semiconductor industry, and given ARM's
strong industry position coming into 2010, we expect group dollar
revenues for the full-year to be at least in line with current market
expectations.




Q4 2009 - Revenue            Revenue ($m)***        Revenue (GBPm)
Analysis

                             Q4     Q4     %        Q4     Q4     %
                           2009   2008  Change    2009   2008   Change

PD                    
   Licensing               35.7   43.0   -17%     21.5   26.5     -19%
   Royalties               63.5   65.5    -3%     38.4   42.5     -10%
Total PD                   99.2  108.5    -9%     59.9   69.0     -13%
PIPD                                                     
   Licensing                9.2    9.8    -7%      5.8    6.3            -8%
      Royalties1                            11.1      10.5          6%            6.7        6.8            -1%

Total  PIPD                                  20.3      20.3                        12.5      13.1            -4%
Development  Systems                12.7      12.9      -1%              7.9        8.1            -2%
Services                                        7.8        7.7        1%              4.9        4.2            15%

Total  Revenue                          140.0    149.4      -6%            85.2      94.4          -10%


1  Includes  catch-up  royalties  in  Q4  2009  of  $0.8m  (GBP0.5m)  and  in  Q4
2008  of  $1.0m  (GBP0.6m).


FY  2009  -  Revenue                Revenue  ($m)***                Revenue  (GBPm)
Analysis

                                                          FY          FY          %                FY          FY          %
                                                      2009      2008    Change        2009      2008      Change

PD                                                                                                              
      Licensing                            128.2    145.1        -12%        76.5      79.3          -4%
      Royalties                            208.1    226.5          -8%      132.5    125.5            6%
Total  PD                                    336.3    371.6        -10%      209.0    204.8            2%
PIPD                                                                                                          
        Licensing                            35.9      44.6        -20%        22.0      24.2          -9%
        Royalties1                          36.2      40.3        -10%        22.9      22.2            3%
Total  PIPD                                  72.1      84.9        -15%        44.9      46.4          -3%
Development  Systems                51.6      57.8        -11%        32.9      31.1            6%
Services                                      29.5      31.9          -8%        18.2      16.6          10%

Total  Revenue                          489.5    546.2        -10%      305.0    298.9            2%


1  Includes  catch-up  royalties  in  FY  2009  of  $5.0m  (GBP2.6m)  and  in  FY
2008  of  $4.6m  (GBP2.5m).



*        Normalised  figures  are  based  on  IFRS,  adjusted  for
          acquisition-related,  share-based  payment  costs  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  5.1  to  5.18.

**      Before  dividends  and  share  buybacks,  net  cash  flows  from  share
          option  exercises,  disposals  of  available-for-sale  investments,
          investment  and  acquisition  consideration  and  other  items  excluded
          from  normalised  profits  -  see  notes  5.9  to  5.13.

***    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.




A  presentation  of  these  results  will  be  webcast  today  at  9:30  GMT  at

  www.arm.com/ir  



CONTACTS:

Nick  Claydon/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/5007G_1-2010-2-1.pdf  

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

END
 

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