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ARM Holdings plc Reports Results For The Fourth Quarter and Full Year 31 December 2007

05 February 2008

A presentation of the results will be webcast today at 09:00 at www.arm.com/ir.

ARM Holdings plc社(本社:英国ケンブリッジ、日本法人:横浜市港北区、代表取締役社長:西嶋貴史)は、現地時間の2月5日に、2007年第4四半期および通期の業績(未監査)を発表しました。

決算ハイライト(明記のない限り、US GAAPベース)

  • 2007年のドル売上高は5億1,430万ドル***で、前年比6%増
    • 成長率は半導体業界の約2倍
    • 第4四半期のドル売上高は1億3,030万ドル
  • 第4四半期の受注額は過去最高を記録
    • グループ全体の受注残高は前期より30%以上増加し、過去最高レベル
    • 全部門の受注残高が第3四半期末より増加
  • コスト削減に対する継続的な取り組み
    • 2007年の営業利益(非US GAAPベース)は、為替変動がなかったと仮定すると15%増(US GAAPベースでは25%増、ともに2006年の実効$/£為替レートで換算した場合)
    • 2007年の営業経費は非US GAAPベースおよびUS GAAPベースともに2006年のレベルを維持
    • 8%のドル安ポンド高にもかかわらず、2007年の営業利益率は31.4%(非US GAAPベース、US GAAPベースでは16.5%)
  • 2007年は1億4,700万ポンドのキャッシュを株主に還元
    • 第4四半期は自社株買いと配当により6,000万ポンドを還元
    • 2007年の配当は前年比100%増
    • 2007年末のネット・キャッシュ残高は目標どおり5,130万ポンド
  • バランス・シート効率を引き続き重視

各部門のハイライト
プロセッサ部門(PD)

  • 2007年のライセンス売上高は前年比18%増
  • 第4四半期の受注額は過去最高を記録 ― 売上高がライセンスの有効期間にわたって認められる3件の長期サブスクリプション契約により、短期的な売上高への影響は減少
  • 第4四半期のロイヤリティ収入は、約8億個の出荷実績に基づく4,880万ドルで、前期比15%増の過去最高を記録

フィジカルIP部門(PIPD)

  • 英ARM社ディレクタのSimon SegarsをPIPDのジェネラル・マネージャに任命
  • 2007年の売上高は8,670万ドル、第4四半期は1,950万ドル
    • 第4四半期にはさらに3社の統合デバイス・メーカ(IDM)がライセンスを取得
    • 第4四半期のロイヤリティ収入は前期比9%増
    • 2008年のPIPDの成長に備えた社内組織の再編が、第4四半期の売上高に影響
英ARM社ディレクタのSimon SegarsをPIPDのジェネラル・マネージャに任命

開発システム
• 2007年の売上高は5,560万ドル、第4四半期は過去最高の1,550万ドル

最高経営責任者(CEO)のWarren Eastは、第4四半期の業績について、次のように述べています。
「半導体業界の低成長にもかかわらず、2007年のARMの業績をこのように報告できることをうれしく思います。売上高の年間成長率は業界の約2倍であり、プロセッサ部門のライセンス供与が年間を通じて順調であったことは、当社の継続的な市場シェア拡大を裏付けています。2007年はフィジカルIP部門の売上高にとって厳しい時期でしたが、最先端のフィジカルIPテクノロジーの開発に向けてリソースを再配分し、経営陣と組織の重点の置き方を変えることにより、2008年には順調な成長を遂げる態勢が整っています。

当社は、グループとして過去最高の総受注残高を持って2008年を迎えます。ますます幅広いデジタル機器にARMテクノロジーの普及が進む中、フィジカルIP事業は、長期的な成長の可能性と順調なロイヤリティ売上高の成長を十分に生かす態勢を整えています。短期的な業界の展望に関しては引き続き慎重に考えていますが、為替変動がないと仮定すると、2008年にはかなりの収益増を期待できます。当社は、ARMの長期的な成長の可能性が非常に大きいと確信しています。」

Q4 2007 – Revenue Analysis

 

Revenue ($M)***

Revenue (£M)

 

Q4 2007

Q4 2006

% Change

Q4 2007

Q4 2006

% Change

Processor Division (PD)

 

 

 

 

 

 

Licensing

38.4

37.4

+3%

19.3

19.5

-1%

Royalties

48.8

42.8

+14%

23.7

22.2

+7%

Total PD

87.2

80.2

+9%

43.0

41.7

+3%

Physical IP Division (PIPD)

 

 

 

 

 

 

Licensing

10.8

18.1

-40%

5.3

9.4

-44%

Royalties

8.71

9.61

-9%

4.31

5.11

-16%

Total PIPD

19.5

27.7

-30%

9.6

14.5

-34%

Development Systems

15.5

14.1

+10%

7.7

7.3

+5%

Services

8.1

8.3

-2%

4.0

4.5

-11%

Total Revenue

130.3

130.3

 

64.3

68.0

-5%

1 Includes catch-up royalties in Q4 2007 of $0.3m (£0.2m) and in Q4 2006 of $0.7m (£0.4m).

FY 2007 – Revenue Analysis

 

Revenue ($M)***

Revenue (£M)

 

FY 2007

FY 2006

% Change

FY 2007

FY 2006

% Change

PD

 

 

 

 

 

 

Licensing

163.5

138.3

+18%

83.4

75.7

+10%

Royalties

176.5

164.1

+8%

88.0

88.7

-1%

Total PD

340.0

302.4

+12%

171.4

164.4

+4%

PIPD

 

 

 

 

 

 

Licensing

54.4

64.2

-15%

27.3

34.9

-22%

Royalties

32.31

34.91

-7%

16.11

19.1¹

-16%

Total PIPD

86.7

99.1

-13%

43.4

54.0

-20%

Development Systems

55.6

53.0

+5%

27.9

28.8

-3%

Services

32.0

29.1

+10%

16.5

16.1

+2%

Total Revenue

514.3

483.6

+6%

259.2

263.3

-2%

1 Includes catch-up royalties in FY 2007 of $2.7m (£1.4m) and in FY 2006 of $3.1m (£1.7m). 

Q4 2007 – Financial Summary

 

£M

US GAAP Normalised*

US GAAP Reported

Q4 2007

Q4 2006

Q4 2007

Q4 2006

Revenue

64.3¹

68.0

64.3

68.0

Income before income tax 21.3 21.3

11.5

9.4

Operating margin

31.5%

29.0%

16.3%

11.4%

Earnings per share (pence)

1.25

1.49

0.74

0.87

Net cash generation**

10.5

13.3

 

 

Effective fx rate  ($/£)

2.02

1.92

 

 

¹ Equivalent to £68.0m at Q4 2006 effective $/£ rate

YTD 2007 – Financial Summary

 

£M

US GAAP Normalised*

US GAAP Reported

FY 2007

FY 2006

FY 2007

FY 2006

Revenue

259.2¹

263.3

259.2

263.3

Income before income tax

86.7

90.1

48.2

57.0

Operating margin

31.4%

31.7%

16.5%

17.1%

Earnings per share (pence)

4.67

5.08

2.70

3.22

Net cash generation**

57.1

50.3

 

 

Effective fx rate  ($/£)

1.98

1.84

 

 

¹ Equivalent to £279.9m at FY 2006 effective $/£ rate

業界の現状と展望
現在のマクロ経済環境で、そして年が明けて間もない今の段階では、当社は、2008年の半導体業界の展望を慎重に考えています。

当社は市場をリードする立場を引き続き生かし、その結果、グループとして過去最高の総受注残高を持って2008年を迎えます。ますます幅広いデジタル機器にARMテクノロジーの普及が進む中、フィジカルIP事業は、長期的な成長の可能性と順調なロイヤリティ売上高の成長を十分に生かす態勢を整えています。

事業を運営する十分に整った態勢と不確実な業界条件を重ね合わせ、当社は、2008年第1四半期のドル売上高が2007年第4四半期と概して同じレベルになると予想しています。取引環境に著しい悪化がないと仮定すると、2008年のドル売上高も、少なくとも2007年に達成した成長率で増加するでしょう。主に利益率の高いロイヤリティ売上高の成長に支えられるARMのビジネス・モデルには、経営レバレッジが内在するため、為替変動がなかったと仮定すれば、当社は2008年の収益成長が売上高成長より大幅に高くなると期待しています。」

※全ての記述に関する詳細は英語版のプレスリリースをご参照ください。(http://www.arm.com/news/19813.html

CONTACTS: 
Fiona Laffan/Pavla Shaw                                           Tim Score/Bruce Beckloff                                    
Brunswick                                                                  ARM Holdings plc                                               
+44 (0)207 404 5959                                                +44 (0)1628 427800

* Normalised figures are based on US GAAP, adjusted for stock-based compensation charges, amortisation of intangible assets and other charges. For reconciliation of GAAP measures to normalised non-GAAP measures detailed in this document, see notes 7.1 to 7.27.
** Before dividends and share buybacks, net cash flows from share option exercises and acquisition consideration - see notes 7.14 to 7.18.
*** Dollar revenues are based on the group’s actual dollar invoicing, where applicable, and using the rate of exchange applicable on the date of the transaction for invoicing in currencies other than dollars.  Approximately 95% of invoicing is in dollars.
**** Each American Depositary Share (ADS) represents three shares.

Financial review
(US GAAP unless otherwise stated)

Total revenues
Total dollar revenues in Q4 2007 were $130.3 million, the same level as in Q4 2006.  Sterling revenues of £64.3 million were down 5% year-on-year due to the weakening of the dollar against sterling ($2.02 in Q4 2007 compared to $1.92 in Q4 2006). At the Q4 2006 effective rate, Q4 2007 sterling revenues would have been £68.0 million.

Full-year dollar revenues in 2007 were $514.3 million, up 6% on 2006. Full-year sterling revenues were £259.2 million, down 2% on 2006 again due to the weakening of the dollar against the sterling for the full year ($1.98 in 2007 compared to $1.84 in 2006).  At the FY 2006 effective rate, FY 2007 sterling revenues would have been £279.9 million or 8% higher than actual reported revenue.

License revenues
Total dollar license revenues in Q4 2007 decreased by 11% to $49.2 million, representing 38% of group revenues, compared to $55.5 million in Q4 2006. License revenues comprised $38.4 million for PD and $10.8 million for PIPD. 

PD license revenues were up 3% versus Q4 2006 but down sequentially 11%.  This was primarily due to the signing of three subscription deals in Q4 where revenue is recognised rateably over the life of the license. These licenses represent a major strategic commitment to ARM’s existing and future technology portfolio by three of the world’s leading semiconductor companies.

PIPD license revenues were down 15% sequentially, being impacted by internal restructuring and productivity improvement activities to position this business for growth in 2008. See the PIPD section in the Operational Review below.

Full-year dollar license revenues were $217.9 million, up 8% on 2006.

Royalty revenues
Total dollar royalty revenues in Q4 2007 were up 10% versus Q4 2006 and up 14% sequentially at $57.5 million, representing 44% of group revenues. Royalty revenues comprised $48.8 million for PD, a 15% sequential increase, and $8.7 million for PIPD (including $0.3 million of “catch-up” royalties), a 9% sequential increase. Underlying royalties of $8.4 million for PIPD were up 9% sequentially, consistent with higher foundry utilisation levels.

Full-year dollar royalty revenues were $208.8 million, up 5% on 2006.

Development Systems and Service revenues
Sales of development systems in Q4 2007 were up 10% versus Q4 2006 and up 26% sequentially to a record level of $15.5 million, representing 12% of group revenues. Although development systems revenues are predominantly generated from turns business, Q4 revenue included one significant deal of a size that is not expected to recur regularly. We, therefore, expect development systems revenue in Q1 2008 to be lower than that achieved in Q4 2007.

Service revenues in Q4 2007 were down 2% year-on-year at $8.1 million, representing 6% of group revenues, compared to $8.3 million in Q4 2006.

Full-year development systems revenues were $55.6 million, up 5% on 2006. Service revenues were up by 10% to $32.0 million.

Gross margins
Gross margins in Q4 2007, excluding stock-based compensation charges of £0.2 million (see below), were 89.4% compared to 89.0% in Q4 2006. 

Full-year gross margins, excluding stock-based compensation charges of £1.0 million, were 89.6% compared to 88.7% in 2006.

Operating expenses and operating margin
Total operating expenses in Q4 2007 were £46.8 million (Q4 2006: £52.4 million) including stock-based compensation charges of £3.0 million (Q4 2006: £5.8 million) and amortisation of intangible assets and other charges of £6.6 million (Q4 2006: £5.8 million). The total stock-based compensation charges of £3.2 million in Q4 2007 are included within cost of revenues (£0.2 million), research and development (£1.9 million), sales and marketing (£0.6 million) and general and administrative (£0.5 million). Normalised Q4 and full-year income statements for 2007 and 2006 are included in notes 7.24 to 7.27 below which reconcile US GAAP to the normalised non-GAAP measures referred to in this earnings release.

Operating expenses (excluding stock-based compensation, amortisation of intangible assets and other charges) in Q4 2007 were £37.2 million compared to £36.5 million in Q3 2007 and £40.8 million in Q4 2006, a 9% reduction versus the previous year. Q4 operating expenses benefited from the regional re-balancing of the group’s resources (see People section below) and general rigorous management of costs.
 
Normalised research and development expenses were £15.1 million in Q4 2007, representing 23% of revenues, compared to £14.8 million in Q3 2007 and £18.2 million in Q4 2006. Normalised sales and marketing costs in Q4 2007 were £11.1 million, representing 17% of revenues, compared to £10.3 million in Q3 2007 and £11.4 million in Q4 2006. Normalised general and administrative expenses in Q4 2007 were £11.1 million, representing 17% of revenues, compared to £11.4 million in Q3 2007 and £11.2 million in Q4 2006.

Normalised operating margin in Q4 2007 was 31.5% (7.1) compared to 31.8% (7.2)  in Q3 2007 and 29.0% (7.3) in Q4 2006. At constant currencies, using the Q4 2006 effective rate of $1.92/£1, the operating margin for Q4 2007 would have been approximately 33%.

Full-year operating expenses for 2007 were £188.4 million, including stock-based compensation charges of £15.4 million and amortisation of intangible assets and other charges of £22.2 million. Excluding these charges, operating expenses for the full year were £150.8 million, compared to £150.1 million in 2006, an increase of 0.5%.

Normalised operating margin in the full year 2007 was 31.4% (7.4) compared to 31.7% (7.5) in 2006. At constant currencies, using the 2006 effective rate of $1.84/£1, the normalised operating margin for 2007 would have been approximately 34%.
 
Earnings and taxation
Income before income tax in Q4 2007 was £11.5 million compared to £9.4 million in Q4 2006. After adjusting for stock-based compensation, amortisation of intangibles and other charges, normalised income before income tax in Q4 2007 was £21.3 million (7.6) compared to £21.3 million (7.7) in Q4 2006.  The group’s effective tax rate under US GAAP for the full-year 2007 was 23.6%, reflecting the availability of research and development tax credits and taking into account the benefits arising from the structuring of the Artisan® acquisition.

In Q4 2007, fully diluted earnings per share prepared under US GAAP were 0.74 pence (4.41 cents per ADS****) compared to earnings per share of 0.87 pence (5.13 cents per ADS****) in Q4 2006. Normalised fully diluted earnings per share in Q4 2007 were 1.25 pence (7.19) per share (7.48 cents per ADS****) compared to 1.49 pence (7.21) (8.73 cents per ADS****) in Q4 2006. The decline in earnings per share for the comparable period was due primarily to a non-recurring tax credit in Q4 2006 arising from a tax-deductible foreign exchange loss.

Full-year 2007 fully diluted earnings per share prepared under US GAAP were 2.70 pence (16.10 cents per ADS****) compared to earnings per share of 3.22 pence (18.88 cents per ADS****) in 2006. Normalised fully diluted earnings per share for 2007 were 4.67 pence (7.22) per share (27.89 cents per ADS****) compared to 5.08 pence (7.23) (29.85 cents per ADS****) in 2006.

Balance sheet
Intangible assets at 31 December 2007 were £384.0 million, comprising goodwill of £344.6 million and other intangible assets of £39.4 million, compared to £336.0 million and £43.1 million respectively at 30 September 2007.

Total accounts receivable were £68.2 million at 31 December 2007, comprising £43.7 million of trade receivables and £24.5 million of amounts recoverable on contracts, compared to £65.0 million at 30 September 2007, comprising £37.6 million of trade receivables and £27.4 million of amounts recoverable on contracts. Days sales outstanding (DSOs) were 49 at 31 December 2007 compared to 39 at 30 September 2007 and 43 at 31 December 2006.

Cash flow, share buyback programme and 2007 final dividend
Net cash at 31 December 2007 was £51.3 million, in line with previous guidance, compared to £99.3 million at 30 September 2007. Normalised cash generation in Q4 2007 was £10.5 million(7.14). 

During the quarter, £60.1 million of cash was returned to shareholders via the purchase of 38 million ARM shares at a cost of £49.6 million and the payment of the interim dividend of £10.5 million.

The directors recommend payment of a final dividend in respect of 2007 of 1.20 pence per share, which taken together with the interim dividend of 0.80 pence per share paid in October 2007, gives a total dividend in respect of 2007 of 2.0 pence per share, an increase of 100% on the total dividend of 1.0 pence per share in 2006. Subject to shareholder approval, the final dividend will be paid on 21 May 2008 to shareholders on the register on 2 May 2008.

At the start of 2007, ARM announced its intention to reduce its cash balance to approximately £50 million by the year end. In achieving this level of net cash, we have returned a total of £147 million to shareholders via both an accelerated share buyback programme and a dividend at twice the level of 2006. Given ARM’s market leadership position and increasingly strong cash flows as the benefits of the licensing and royalty model bear fruit, we remain focused on balance sheet efficiency.
 
International Financial Reporting Standards (IFRS)
ARM reports results quarterly in accordance with US GAAP. At 30 June and 31 December each year, in addition to the US GAAP results, ARM is also required to publish results under IFRS. The operating and financial review commentary included in this release on the US GAAP numbers is for the most part applicable to the IFRS numbers and, in particular, revenues, dividends and share buybacks are recorded in the same way under both sets of accounting rules. A summary of the accounting differences between IFRS and US GAAP and reconciliations of IFRS and US GAAP profit and shareholders’ equity are set out in note 6 to the financial tables below. 

Operating review

Backlog
In Q4 ARM achieved its highest bookings quarter ever, growing the backlog more than 30% sequentially.  All divisions achieved higher backlog compared to Q3 with the Processor Division up more than 50% resulting from the three subscription licenses that were signed in Q4. The revenue from these subscription licenses will be recognised rateably over the life of the subscription agreements.

PD Licensing – Equipping the Leading Semiconductor Companies with ARM Processor IP
2007 saw even broader acceptance of our market-leading processor IP products by the semiconductor industry.  During the year we saw significant commitments by tier one semiconductor companies to our latest technology. We signed 14 further licenses for Cortex™ products, including 3 lead partners for the next-generation Cortex-A9 processor, bringing the total number of Cortex licenses to 37. This represents the fastest uptake of a microprocessor family in the history of ARM. We were also very encouraged with the licensing activity of our Mali™ 3D graphics technology, with the signing in Q4 of our fifth license since acquisition of that technology. Nine semiconductor companies are now licensed to design products using our graphics technology.

The long-term commitment of our partners to ARM technology is further evidenced by the signing of 4 subscription licenses in 2007, 3 of which were signed in Q4.  Of the original subscription licensees (NXP, ST and Samsung) all have renewed their long-term commitment to ARM technology. Further, in Q4 we signed a new subscription license with a top five Japanese semiconductor company, significantly expanding the penetration of ARM technology into that region.

Q4 2007 and Cumulative PD Licensing Analysis

 

Multi-use

Term

Per-use

 

Cumulative

 

U

D

N

U

D

N

U

D

N

Total

Total

ARM7

 

 

1

 

 

 

 

 

1

2

153

ARM9

 

3

2

 

 

 

 

 

1

6

239

ARM11

3

1

1

1

 

 

 

 

 

6

64

Cortex-M3

2

1

 

 

 

 

 

 

 

3

14

Cortex-R4

 

 

 

 

 

 

 

 

 

 

10

Cortex-A8

 

 

 

 

 

 

 

 

 

 

9

Cortex-A9

 

 

 

 

 

 

 

 

 

 

4

Mali

 

 

 

1

 

 

 

 

 

1

5

Other

 

 

 

1

 

 

 

 

 

1

29

 

 

 

 

 

 

 

 

 

Total

19

527

U: Upgrade     D: Derivative     N: New

PD Royalties – Broadening the Usage of ARM Processor IP
PD unit shipments in Q3 (our partners report royalties one quarter in arrears) increased 19% sequentially to a record 828 million units in the quarter. For the reported year, ARM partners shipped just under 3 billion units (2.9bn), up 18% on 2006 and are now at a run rate of ~9 million units per day.  We also reached a significant milestone in 2007 with our partners shipping the 10 billionth ARM microprocessor since ARM’s inception in 1990.

In the quarter, ARM9™ family shipments comprised 41% of total units, including 20% relating to ARM926EJ-S™ processor shipments. ARM11™ family shipments now comprise 2% of total shipments. In the quarter we received our first royalties from our Mali 3D graphics product and from the initial shipments of Cortex products.

ARM unit shipments showed significant resilience in a year that was affected by the industry-wide inventory correction which started in the second half of 2006.  The proportion of shipments into the mobile and non-mobile segments during 2007 remained broadly consistent with the proportion of mobile shipments edging up slightly in Q4 to 68%. The ARM content per phone continued to increase, reaching approximately 1.7 cores per phone by year end.

We continue to see strength in the embedded segment, rising to 13% of shipments in the quarter, in part due to the continued significant growth in MCU shipments with growth of 2.4x over 2006. MCUs are now the highest volume individual application after wireless handsets. 

PIPD Licensing – Extending the IP Outsourcing Model to ARM Physical IP
PIPD signed a further 21 licenses in Q4, mostly for earlier generation technology. In the quarter, a further three IDMs (including one top 10 semiconductor company) signed physical IP licenses, demonstrating the growing appetite for IDMs to complement their in-house physical IP development with outsourced physical IP from ARM. This brings the total number of license deals with IDMs to 7 in 2007.

Although 2007 has been a challenging year for revenue, we made progress in positioning the business for growth in 2008 and beyond. In 2007, we continued to focus on the acceleration of the physical IP roadmap to include leadership-standard, leading-edge physical IP. In 2007, we signed an additional three 45nm licenses, of which one was for our SOI technology, and ten 65nm licenses.  Of the 202 licenses signed since the acquisition of Artisan, 42 licenses have been signed for technology that ARM has developed since the acquisition.

As the business transitions from technology catch-up to a more business-as-usual state for development of leading-edge technology, there is increased focus on improvement in internal processes to drive increased productivity, better resource management and improved product delivery to customers. In order to enable our partners to create the best physical implementations of their designs and for ARM to continue to be the industry leader in physical IP, we are striving to ensure that PIPD is a leader in technology development, on-time delivery, customer satisfaction and engineering efficiency. Simon Segars became the General Manager of PIPD in September 2007 to accelerate these activities. Simon joined ARM in 1991 and has been a member of the Board since 2004. He has previously held a number of positions fundamental to ARM’s development, including VP of Engineering, EVP of Sales and EVP of Business Development.

Enhanced engineering efficiency is being realised through the reorganisation of the business into dedicated design centres to align better the skill sets of each centre with the challenges of developing leading-edge technology as well as to define better the accountabilities and tasks of each engineering team. This reorganisation has resulted in the elimination in Q1 2008 of approximately 30 positions within our Sunnyvale, CA facility as we align its skill base with the needs of the organisation going forward.

In order to capture the specific growth opportunities we see as we enter 2008, we are further focusing the business to concentrate on the high volume, mass-market opportunity represented by the traditional Artisan free library business model and on the high-value business of licensing physical IP to IDMs and large fabless customers, both for earlier generation and leading-edge technology. We have already achieved considerable success, having licensed the leading foundries through to the 45nm process node and having signed a further 7 IDM licenses in 2007. In 2008, we expect growth to be generated from further penetration of the foundries with ARM technology; expanding the number of licenses to IDMs and large fabless customers for earlier generation technology and securing the initial licenses for leading-edge physical IP technology with IDM and large fabless customers.

Additionally, the research and development teams in PD and PIPD will continue to focus on enabling our partners to create highly optimised physical implementations of their ARM processors, utilising processor-specific physical IP.

Q4 2007 and Cumulative PIPD Licensing Analysis

 

Process Node (nm)

Total

Platform Licenses

 

 

Classic™

180

3

Advantage™

90

2

Standard Cell Libraries

 

 

Advantage

90

1

Metro™

180

3

Memory Compilers

 

 

Classic

180/130

4

Advantage

90

2

Metro

180

1

Velocity™ PHYs

65

4

SOI Licenses

45

1

Quarter Total

 

21

Cumulative Total

 

350

PIPD Royalties – Broadening the Usage of ARM Physical IP
Underlying PIPD royalties were strong in Q4 2007, increasing 9% sequentially. ARM continued to expand market share in Q3 (our foundry partners report royalties one quarter in arrears) as underlying royalties were up by more than the improvement in utilisation rates at the foundries for earlier generations technology nodes, where ARM currently earns the majority of its royalties.

People
At 31 December 2007, ARM had 1,728 full-time employees, a net increase of 69 in the year. Year-to-date headcount has increased by 89 in India with a net reduction of 20 in other regions, illustrating the ongoing regional re-balancing of ARM’s resources. At the end of Q4, the group had 650 employees based in the UK, 523 in the US, 190 in Continental Europe, 292 in India and 73 in the Asia Pacific region.

Legal matters
ARM is involved in ongoing litigation proceedings with Nazomi Communications, Inc. and Technology Properties Limited, Inc. In both cases, a district court has found in favour of ARM and both cases are now pending before the Court of Appeals for the Federal Circuit. Details are set out in the 2006 Annual Report on Form 20-F filed with the Securities and Exchange Commission on 11 April 2007. Based on independent legal advice, ARM does not expect any significant liability to arise in respect of these proceedings.

Download 2007 Earnings Release - Financial Tables (84KB .pdf ) 

Note
The results shown for Q4 2007, Q3 2007, Q4 2006 and FY 2007 are unaudited. The US GAAP results shown for FY 2006 are audited.  The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 240(3) of the Companies Act 1985. Statutory accounts of the Company in respect of the financial year ended 31 December 2006, upon which the Company’s auditors have given a report which was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of that Act, have been delivered to the Registrar of Companies.

The results for ARM for Q4 2007 and previous quarters as shown reflect the accounting policies as stated in Note 1 to the US GAAP financial statements in the Annual Report and Accounts filed with Companies House in the UK for the fiscal year ended 31 December 2006 and in the Annual Report on Form 20-F for the fiscal year ended 31 December 2006, except in relation to accounting for sabbatical leave in accordance with EITF 06-2 and provisioning for uncertain tax positions in accordance with FIN 48.

This document contains forward-looking statements as defined in section 102 of the Private Securities Litigation Reform Act of 1995.  These statements are subject to risk factors associated with the semiconductor and intellectual property businesses.  When used in this document, the words “anticipates”, “may”, “can”, “believes”, “expects”, “projects”, “intends”, “likely”, similar expressions and any other statements that are not historical facts, in each case as they relate to ARM, its management or its businesses and financial performance and condition are intended to identify those assertions as forward-looking statements.  It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables, many of which are beyond our control.  These variables could cause actual results or trends to differ materially and include, but are not limited to: failure to realise the benefits of our recent acquisitions, unforeseen liabilities arising from our recent acquisitions, price fluctuations, actual demand, the availability of software and operating systems compatible with our intellectual property, the continued demand for products including ARM’s intellectual property, delays in the design process or delays in a customer’s project that uses ARM’s technology, the success of our semiconductor partners, loss of market and industry competition, exchange and currency fluctuations, any future strategic investments or acquisitions, rapid technological change, regulatory developments, ARM’s ability to negotiate, structure, monitor and enforce agreements for the determination and payment of royalties, actual or potential litigation, changes in tax laws, interest rates and access to capital markets, political, economic and financial market conditions in various countries and regions and capital expenditure requirements.

More information about potential factors that could affect ARM’s business and financial results is included in ARM’s Annual Report on Form 20-F for the fiscal year ended 31 December 2006 including (without limitation) under the captions, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is on file with the Securities and Exchange Commission (the “SEC”) and available at the SEC’s website at www.sec.gov.

ARM社概要

ARMは、ワイヤレス、ネットワーク、デジタル家電、画像、自動車、セキュリティ、そしてストレージ機器といった高度なデジタル製品のコアとなる技術をデザインしています。ARMが提供する総合的な製品・IP(知的財産)には、16/32 ビット組込みRISC マイクロプロセッサ、データエンジン、グラフィック プロセッサ、デジタルライブラリ、組み込みメモリ、ペリフェラル、ソフトウェア、開発ツールならびにアナログ機能や高速インターフェース製品が含まれます。 ARM は、ARMの幅広いパートナーコミュニティと共に、信頼性の高い製品を迅速に市場へ投入するためのトータルシステムソリューションを、大手エレクトロニクス企業に提供しています。ARMについて詳しくは当社Webサイトをご覧ください。(http://www.jp.arm.com/

※ARMはARM社の登録商標です。ARM7、ARM9、ARM926EJ-S、ARM11、Cortex、Mali、Advantage、Classic、Advantage、MetroとVelocityは、ARM社の商標です。その他のブランドあるいは製品名は全て、それぞれのホールダーの所有物です。「ARM」とは、ARM Holdings plc(LSE:ARM、NASDAQ:ARMHY)、その事業会社であるARM Limited、各地域の子会社であるARM Inc、ARM Germany GmbH、ARM KK、ARM Korea Ltd.、ARM Taiwan Ltd、ARM France SAS、ARM Consulting (Shanghai) Co. Ltd., ARM Belgium N.V.、ARM Embedded Technologies Pvt. Ltd.、 Keil Elektronik GmbHそして、ARM Norway, ASの全部または一部を意味します。

ARMは、ワイヤレス、ネットワーク、デジタル家電、画像、自動車、セキュリティ、そしてストレージ機器といった高度なデジタル製品のコアとなる技術をデザインしています。ARMが提供する総合的な製品・IP(知的財産)には、16/32 ビット組込みRISC マイクロプロセッサ、データエンジン、グラフィック プロセッサ、デジタルライブラリ、組み込みメモリ、ペリフェラル、ソフトウェア、開発ツールならびにアナログ機能や高速インターフェース製品が含まれます。 ARM は、ARMの幅広いパートナーコミュニティと共に、信頼性の高い製品を迅速に市場へ投入するためのトータルシステムソリューションを、大手エレクトロニクス企業に提供しています。ARMについて詳しくは当社Webサイトをご覧ください。() ※ARMはARM社の登録商標です。ARM7、ARM9、ARM926EJ-S、ARM11、Cortex、Mali、Advantage、Classic、Advantage、MetroとVelocityは、ARM社の商標です。その他のブランドあるいは製品名は全て、それぞれのホールダーの所有物です。「ARM」とは、ARM Holdings plc(LSE:ARM、NASDAQ:ARMHY)、その事業会社であるARM Limited、各地域の子会社であるARM Inc、ARM Germany GmbH、ARM KK、ARM Korea Ltd.、ARM Taiwan Ltd、ARM France SAS、ARM Consulting (Shanghai) Co. Ltd., ARM Belgium N.V.、ARM Embedded Technologies Pvt. Ltd.、 Keil Elektronik GmbHそして、ARM Norway, ASの全部または一部を意味します。

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飯塚 聖子
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テキスト100ジャパン㈱(アーム㈱PR代理店) 
秋澤 知子、上野 素子
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