Annual Report and Accounts 2010

Financial KPIs

Revenue $m

  • 06
  • 199.0
  • 202.5
  • 82.1
  • 483.6
  • 07
  • 208
  • 217.9
  • 87.6
  • 514.3
  • 08
  • 266.8
  • 189.7
  • 89.7
  • 546.2
  • 09
  • 244.3
  • 164.1
  • 81.1
  • 489.5
  • 10
  • 335.3
  • 208.2
  • 87.8
  • 631.3
  • Royalty
  • Licensing
  • Other

ARM's revenue growth is sustained by our customers incorporating ARM technology in more of their product lines.

Sterling revenues £m

  • 06
  • 107.8
  • 110.6
  • 44.9
  • 263.3
  • 07
  • 104.1
  • 110.7
  • 44.4
  • 259.2
  • 08
  • 147.7
  • 103.5
  • 47.7
  • 298.9
  • 09
  • 155.4
  • 98.5
  • 51.1
  • 305.0
  • 10
  • 217.7
  • 132.5
  • 56.4
  • 406.6
  • Royalty
  • Licensing
  • Other

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

Profit from operations £m

  • 06
  • 49.2
  • 81.8
  • 07
  • 39.7
  • 82.1
  • 08
  • 59.9
  • 97.7
  • 09
  • 45.6
  • 95.1
  • 10
  • 107.0
  • 164.3
  • Profit under IFRS
  • Normalised profit

Growing revenues and continued financial discipline drive ARM's profitability.

Operating margin %

  • 06
  • 18.7
  • 31.1
  • 07
  • 15.3
  • 31.7
  • 08
  • 20.1
  • 32.7
  • 09
  • 15.0
  • 31.2
  • 10
  • 26.3
  • 40.4
  • Operating margin under IFRS
  • Normalised operating margin

ARM's financial discipline balances long-term R&D investment with cost control to improve operating margins over time.

Earnings per share pence

  • 06
  • 3.43
  • 5.02
  • 07
  • 2.59
  • 4.79
  • 08
  • 3.39
  • 5.66
  • 09
  • 3.11
  • 5.45
  • 10
  • 6.36
  • 9.34
  • Diluted EPS under IFRS
  • Normalised diluted EPS

Revenue growth and margin expansion drive higher earnings per share.

Dividend pence

  • 06
  • 1.00
  • 07
  • 2.00
  • 08
  • 2.20
  • 09
  • 2.42
  • 10
  • 2.90

ARM has a progressive dividend policy, growing the dividend through industry cycles.

Normalised net cash generation £m

  • 06
  • 52.2
  • 07
  • 60.2
  • 08
  • 95.3
  • 09
  • 86.1
  • 10
  • 179.9

Net cash at the end of 2010 was £290 million. Regular licences and robust royalties deliver a reliable cash flow.

Cumulative cash returned £m

  • 06
  • 31
  • 93
  • 124
  • 07
  • 50
  • 222
  • 272
  • 08
  • 77
  • 261
  • 338
  • 09
  • 106
  • 261
  • 367
  • 10
  • 141
  • 261
  • 402
  • Dividends
  • Share buybacks

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