ARM Investor Relations website

ARM Investor Relations website

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Financial highlights

Normalised figures quoted below for operating margin, profit from operations and EPS are non-GAAP measures.
For reconciliations of IFRS GAAP measures to normalised non-GAAP measures, see page 20.

Revenue $m

Revenue $m

ARM’s revenue growth is derived from our customers incorporating ARM technology in more of their product lines.

Profit from operations £m

Income from operations £m

Operating leverage drives ARM’s profitability.

Earnings per share p

Earnings per share p

ARM has no debt, so all of our post-tax operating profit drops through to EPS.

Net cash generation* £m

Net cash generation* £m

Net cash at the end of 2004 was £143 million. Regular licences and robust royalties deliver a reliable cash flow.

Sterling revenues £m

Sterling revenues £m

About 95% of ARM’s revenues are in US dollars, but only half our costs are US dollar based.

Operating margin %

Operating margin %

ARM’s financial discipline balances long-term R&D investment with cost control.

Dividend p

Dividend p

ARM has a progressive dividend policy, growing dividends in line with our expectations of medium-term EPS growth.

Cumulative cash returned £m

Cumulative cash returned £m

Reliable cash generation allows for cash to be returned to shareholders.


* Net cash generation is defined as movement on cash, cash equivalents, short-term investments and marketable securities, adding back share buybacks, dividend payments, investment and acquisition consideration, restructuring payments, other acquistion-related payments and share-based payroll taxes, and deducting inflows from share option exercises and proceeds from investment disposals. See page 20.