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.
ARM’s revenue growth is derived from our customers incorporating ARM technology in more of their product lines.
Profit from operations £m
Operating leverage drives ARM’s proﬁtability.
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 at the end of 2004 was £143 million. Regular licences and robust royalties deliver a reliable cash flow.
Sterling revenues £m
About 95% of ARM’s revenues are in US dollars, but only half our costs are US dollar based.
Operating margin %
ARM’s financial discipline balances long-term R&D investment with cost control.
ARM has a progressive dividend policy, growing dividends in line with our expectations of medium-term EPS growth.
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.