Selected financial data/ IFRS

Selected financial data/IFRS

Under IFRS	2009 £000	2008 £000	2007 £000	2006 £000	2005 £000
Revenues	305,022	298,934	259,160	263,254	232,439
Cost of revenues	(25,471)	(32,878)	(28,105)	(30,877)	(26,610)
Gross profit	279,551	266,056	231,055	232,377	205,829
Total net operating expenses	(233,937)	(206,113)	(191,361)	(183,129)	(170,672)
Profit from operations	45,614	59,943	39,694	49,248	35,157
Investment income, net	1,645	3,246	5,402	6,758	5,317
Profit before tax	47,259	63,189	45,096	56,006	40,474
Tax	(6,820)	(19,597)	(9,846)	(7,850)	(10,827)
Profit for the year	40,439	43,592	35,250	48,156	29,647
Dividends paid	28,961	26,383	18,547	12,367	10,436
Capital expenditure	6,875	8,720	5,444	8,559	6,064
Research and development expenditure	112,215	87,588	83,977	84,884	80,273
Cash, short and long-term investments	141,808	78,789	51,323	128,494	160,902
Shareholders’ funds	738,697	740,343	579,162	660,926	746,847
Employees at end of year (number)	1,710	1,740	1,728	1,659	1,324

The following table shows non-GAAP measures used in this annual report, including reconciliations from the IFRS measures. They exclude acquisition related charges, share-based payment costs and restructuring charges, and profit on disposal and impairment of available-for-sale investments.

Selected financial data/IFRS

	2009 £000	2008 £000	2007 £000	2006 £000	2005 £000
Profit from operations (per IFRS income statement)	45,614	59,943	39,694	49,248	35,157
Operating margin	15.0%	20.1%	15.3%	18.7%	15.1%
Acquisition-related charge – amortisation of intangibles	15,698	19,601	19,195	19,337	17,939
Acquisition-related charge – other payments	456	382	1,735	1,057	−
Share-based payment costs and related payroll taxes	24,699	15,908	18,387	17,445	21,508
Restructuring charges	8,471	1,872	1,037	−	−
Impairment of available-for-sale investments	188	−	2,100	(5,270)	−
Normalised profit from operations	95,126	97,706	82,148	81,817	74,604
Normalised operating margin	31.2%	32.7%	31.7%	31.1%	32.1%
Investment income, net	1,645	3,246	5,402	6,758	5,317
Normalised profit before tax	96,771	100,952	87,550	88,575	79,921
Tax (per IFRS income statement)	(6,820)	(19,597)	(9,846)	(7,850)	(10,827)
Tax impact of above charges	(19,109)	(8,524)	(12,498)	(10,350)	(9,439)
Normalised profit after tax	70,842	72,831	65,206	70,375	59,655
Normalised diluted EPS (pence)	5.45	5.66	4.79	5.02	4.19
IFRS Diluted EPS (pence)	3.11	3.39	2.59	3.43	2.08

Selected financial data/IFRS

		2009 £000	2008 £000	2007 £000	2006 £000	2005 £000
Cash and cash equivalents		34,489	76,502	49,509	90,743	128,077
Short-term investments		105,524	471	232	18,600	23,990
Short- and long-term marketable securities		1,795	1,816	1,582	19,151	8,835
Normalised net cash, at end of year		141,808	78,789	51,323	128,494	160,902
Less:	Normalised net cash, at start of year	(78,789)	(51,323)	(128,494)	(160,902)	(142,817)
	Cash inflow from exercise of share options	(19,085)	(5,581)	(18,892)	(17,860)	(13,921)
	Cash inflow from sale of available-for-sale investments	(663)	(6,291)	−	(5,567)	(96)
Add back:	Cash outflow from payment of dividends	28,961	26,383	18,547	12,367	10,436
	Cash outflow from purchase of own shares	−	40,286	128,561	76,519	16,211
	Cash outflow from investments and acquisition	9,679	8,400	6,014	17,435	20,578
	Cash outflow from restructuring payments	3,451	1,872	1,037	-	-
	Cash outflow from other acquisition-related payments	-	2,207	1,735	1,057	-
	Cash outflow from share-based payroll taxes	741	577	362	653	-
Normalised net cash generation		86,103	95,319	60,193	52,196	51,293

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.

Selected financial data/IFRS

	2009	2008	2007	2006	2005
Revenues (£’000)	305,022	298,934	259,160	263,254	232,439
ARM’s effective exchange rate	1.60	1.83	1.98	1.84	1.80
Revenues ($’000)	489,453	546,211	514,301	483,637	418,668