Selected financial data
| Under IFRS | 2008 £000 | 2007 £000 | 2006 £000 | 2005 £000 | 2004 £000 |
|---|---|---|---|---|---|
| Revenues | 298,934 | 259,160 | 263,254 | 232,439 | 152,897 |
| Cost of revenues | (32,878) | (28,105) | (30,877) | (26,610) | (12,240) |
| Gross profit | 266,056 | 231,055 | 232,377 | 205,829 | 140,657 |
| Total net operating expenses | (206,113) | (191,361) | (183,129) | (170,672) | (112,328) |
| Profit from operations | 59,943 | 39,694 | 49,248 | 35,157 | 28,329 |
| Investment income, net | 3,246 | 5,402 | 6,758 | 5,317 | 6,944 |
| Profit before tax | 63,189 | 45,096 | 56,006 | 40,474 | 35,273 |
| Tax | (19,597) | (9,846) | (7,850) | (10,827) | (9,398) |
| Profit for the year | 43,592 | 35,250 | 48,156 | 29,647 | 25,875 |
| Dividends paid | 26,383 | 18,547 | 12,367 | 10,436 | 8,975 |
| Capital expenditure | 8,720 | 5,444 | 8,559 | 6,064 | 5,036 |
| Research and development expenditure | 87,588 | 83,977 | 84,884 | 80,273 | 54,674 |
| Cash, short- and long-term investments | 78,789 | 51,323 | 128,494 | 160,902 | 142,817 |
| Shareholders’ funds | 740,343 | 579,162 | 660,926 | 746,847 | 642,538 |
| Employees at end of year (number) | 1,740 | 1,728 | 1,659 | 1,324 | 1,171 |
The following table shows non-GAAP measures used in this annual report, including reconciliations from the IFRS GAAP measures. They exclude acquisition-related charges, share-based compensation charges and restructuring charges, and profit on disposal or impairments of available-for-sale investments.
| 2008 £000 | 2007 £000 | 2006 £000 | 2005 £000 | 2004 £000 | |
|---|---|---|---|---|---|
| Profit from operations (per GAAP income statement) | 59,943 | 39,694 | 49,248 | 35,157 | 28,329 |
| Operating margin | 20.1% | 15.3% | 18.7% | 15.1% | 18.5% |
| Acquisition-related charge – amortisation of intangibles | 19,601 | 19,195 | 19,337 | 17,939 | 511 |
| Acquisition-related charge – other payments | 382 | 1,735 | 1,057 | – | – |
| Share-based compensation and related payroll taxes | 15,908 | 18,387 | 17,445 | 21,508 | 8,210 |
| Restructuring charges | 1,872 | 1,037 | – | – | – |
| Impairment of available-for-sale security | – | 2,100 | (5,270) | – | (392) |
| Normalised profit from operations | 97,706 | 82,148 | 81,817 | 74,604 | 36,658 |
| Normalised operating margin | 32.7% | 31.7% | 31.1% | 32.1% | 24.0% |
| Investment income, net | 3,246 | 5,402 | 6,758 | 5,317 | 6,944 |
| Normalised profit before tax | 100,952 | 87,550 | 88,575 | 79,921 | 43,602 |
| Tax (per GAAP income statement) | (19,597) | (9,846) | (7,850) | (10,827) | (9,398) |
| Tax impact of above charges | (8,524) | (12,498) | (10,350) | (9,439) | (1,270) |
| Normalised profit after tax | 72,831 | 65,206 | 70,375 | 59,655 | 32,934 |
| Normalised EPS (pence) | 5.66 | 4.79 | 5.02 | 4.19 | 3.14 |
| IFRS Diluted EPS (pence) | 3.39 | 2.59 | 3.43 | 2.08 | 2.47 |
Approximately 95% of the Group’s revenues are earned in US dollars. As such, dollar revenues are based on actual dollar invoicing where applicable, and using the rate of exchange on the date of the transaction for invoicing in currencies other than dollars.
| 2008 £000 | 2007 £000 | 2006 £000 | 2005 £000 | 2004 £000 | |
|---|---|---|---|---|---|
| Revenues (£’000) | 298,934 | 259,160 | 263,254 | 232,439 | 152,897 |
| ARM’s effective exchange rate | 1.83 | 1.98 | 1.84 | 1.80 | 1.78 |
| Revenues ($’000) | 546,211 | 514,301 | 483,637 | 418,668 | 272,410 |
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