31 July 2008

ARM Q2 and Half Year Ended 30 June 2008 Results

ARM Holdings plc has reported its results for the second quarter and half year ended 30 June 2008.

Highlights included: Q2 revenues at $128.1m, £65m (US GAAP unless otherwise stated). Total revenue at $22.3m, up 5% year-on-year.

The Physical IP Division (PIPD) reported: Second quarter of sequential growth for both licensing and royalty revenues.
Licensing revenues increased 7% sequentially to $12.6m. Royalty revenue up 33% year-on-year.

Commenting on the results, Warren East, Chief Executive Officer, said: “ARM has made good progress in the first half of 2008 in challenging market conditions, further extending the Group’s backlog which was already at record levels. We see continued strong demand for ARM’s technology including long-term commitments for our processor and physical IP technology by industry leaders.

Prospects for PD licensing in H2 2008 are promising notwithstanding the uncertain current trading environment. We have a broad product portfolio that our customers are designing into applications from mobile computers to microcontrollers.  We are encouraged by our second successive quarter of sequential growth in PIPD as we build momentum in that business".

"Growth of more than 25% year-on-year in underlying royalty revenues for both PD and PIPD provides further evidence of the increasing use of ARM’s technology in a rapidly broadening range of consumer electronics products.
Whilst investing in future technology innovation, we continue to exercise financial restraint, reducing overall operating costs and headcount, thereby increasing margins sequentially; generating record levels of cash within the quarter; and increasing the interim dividend," added East.