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ARM社が2012年第4四半期および通期の業績速報を発表

05 February 2013

A presentation of the results will be webcast today at 09.30 GMT 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、以下ARM)は、現地時間の2013年2月5日に、2012年12月31日締めの2012会計年度第4四半期および通期の業績(未監査)を発表しました。

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Q4 2012 – Financial Summary

Normalised*

IFRS

Q4 2012

Q4 2011

% Change

Q4 2012

Q4 2011

Revenue ($m)

262.8

217.0

21%

262.8

217.0

Revenue (£m)

164.2

137.8

19%

164.2

137.8

Operating margin

46.6%

48.2%

34.5%

34.2%

Profit before tax (£m)

80.0

69.0

16%

59.5

49.7

Earnings per share (pence)

4.08

3.71

10%

3.04

2.40

Net cash generation**

74.1

51.5

Effective revenue fx rate ($/£)

1.60

1.58

FY 2012 – Financial Summary

Normalised*

IFRS

FY 2012

FY 2011

% Change

FY 2012

FY 2011

Revenue ($m)

913.1

785.0

16%

913.1

785.0

Revenue (£m)

576.9

491.8

17%

576.9

491.8

Operating margin

45.6%

45.1%

36.1%

30.3%

Profit before tax (£m)

276.5

229.7

20%

221.0

156.9

Earnings per share (pence)

14.70

12.45

18%

11.51

8.19

Net cash generation**

267.3

203.8

Effective revenue fx rate ($/£)

1.58

1.60

第4四半期における主要成長分野の進展

 

• ARM®プロセッサ・テクノロジーの採用が増加

  • スマートフォン、モバイル・コンピュータ、医療機器、マイクロコントローラなど、幅広いアプリケーション向けに36件のプロセッサ・ライセンス契約を締結
  • コンピューティング、サーバ、ネットワーキング・アプリケーションでは引き続き人気を獲得し、ARMv8アーキテクチャ・ライセンス契約2件、ARMv8プロセッサ・ライセンス契約6件、ARM Cortex™-A15プロセッサ・ライセンス契約3件を締結

• ARMプロセッサ・テクノロジー搭載チップの出荷数が増加

  • 25億個のチップを出荷
  • Cortex-A、Mali™搭載チップの堅調な成長に牽引され、プロセッサのロイヤリティ収入が前年同期比21%増

• 新しいテクノロジー・アウトソーシングにおける成長

  • Maliグラフィックス・プロセッサのライセンス契約7件を締結
  • フィジカルIPをベースとしたPOP™ IP製品のライセンス契約5件を締結

 

 

 

最高経営責任者(CEO)のWarren Eastは、次のように述べています。

「ARMは2012年も、順調に売上高と利益を伸ばしました。お客様は、ポストPC時代のニーズに応える製品を開発し、ARMの最先端技術に対する需要を牽引しています。第4四半期には、影響力の強い市場大手各社が最新製品のライセンスを取得し、ARMテクノロジーに対する信頼を再び実証しました。また、ARMの市場シェアの増加、スマートフォンやタブレットに採用されているCortex-Aクラスのプロセッサのロイヤリティ率上昇に支えられ、ロイヤリティ収入も堅調に増加しました。2013年は、ARMが競争の激しい新しい市場に参入することから、すばらしい可能性と課題に満ちた年になるでしょう。ARMは、最先端のテクノロジー、革新的なビジネス・モデル、パートナー各社の活気あるエコシステムを生かして成功する有利な立場にあります。」

 

業界の現状と展望

ARMは、将来のライセンス契約につながる堅調なルートと記録的な受注残高を確保して2013年を迎えます。パートナー各社がARMテクノロジーをベースとする新しいチップを発表するにつれ、長期的な成長市場におけるシェアが拡大することは確実と思われます。世界のマクロ経済情勢は引き続き不透明で、しばらくは低成長が予想されます。それに伴う消費者と企業の支出の陰りが、半導体売上高と業界の信頼感に影響を与えることは避けられません。しかし、マクロ経済情勢が大幅に悪化しないと仮定すれば、グループ全体の年間ドル売上高は、少なくとも現在の市場の期待に応えると見込まれます。

 

ここ数四半期、前年同期と比較したARMプロセッサのロイヤリティ収入の増加は、半導体業界を15~20%上回っています。ARMの2013年第1四半期のロイヤリティ収入は、2012年第4四半期に出荷されたチップから生じます。2012年第4四半期の当該データを見ると、半導体売上高は前年同期比でわずかに増加しました。前年同期と比較したロイヤリティ収入の増加も同様とし、ライセンス収益の明るい展望を考慮すると、2013年第1四半期の総売上高は2億5,000万ドル前後と期待されます。

 

 

Q4 2012 – Revenue Analysis

Revenue ($m)***

Revenue (£m)

Q4 2012

Q4 2011

% Change

Q4 2012

Q4 2011

% Change

PD

Licensing

85.2

67.5

26%

53.1

43.0

24%

Royalties

121.8

100.4

21%

76.1

63.6

20%

Total PD

207.0

167.9

23%

129.2

106.6

21%

PIPD

Licensing

15.4

11.4

36%

9.7

7.2

33%

Royalties1

15.0

14.3

5%

9.4

9.1

4%

Total PIPD

30.4

25.7

19%

19.1

16.3

17%

System Design Division

13.9

12.7

10%

8.7

8.1

7%

Services

11.5

10.7

7%

7.2

6.8

7%

Total Revenue

262.8

217.0

21%

164.2

137.8

19%

1 Includes catch-up PIPD royalties of $0.4m (£0.2m) in Q4 2012 and $2.2m (£1.4m) in Q4 2011.

FY 2012 – Revenue Analysis

Revenue ($m)***

Revenue (£m)

FY 2012

FY 2011

% Change

FY 2012

FY 2011

% Change

PD

Licensing

287.1

236.5

21%

181.1

149.3

21%

Royalties

417.7

356.9

17%

264.4

222.2

19%

Total PD

704.8

593.4

19%

445.5

371.5

20%

PIPD

Licensing

52.2

49.2

6%

32.9

31.2

6%

Royalties1

56.2

48.7

15%

35.4

30.2

17%

Total PIPD

108.4

97.9

11%

68.3

61.4

11%

System Design Division

54.9

52.4

5%

34.7

32.9

5%

Services

45.0

41.3

9%

28.4

26.0

9%

Total Revenue

913.1

785.0

16%

576.9

491.8

17%

1 Includes catch-up PIPD royalties of $4.4m (£2.7m) in FY 2012 and $4.5m (£2.8m) in FY 2011.

 

* Normalised figures are based on IFRS, adjusted for acquisition-related charges, share-based payment costs, profit or loss on disposal and impairment of available-for-sale investments, share of results in joint ventures and Linaro™-related charges. For reconciliation of IFRS measures to normalised non-IFRS measures detailed in this document, see notes 11.13 to 11.16.
** Net cash generation is defined as movement on cash, cash equivalents, short-term and long-term deposits, adding back dividend payments, investment and acquisition consideration, restructuring payments, other acquisition-related payments, share-based payroll taxes, payments to joint ventures and Linaro, and deducting inflows from share option exercises and investment disposal proceeds – see notes 11.8 to 11.12.
*** 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. Over 95% of invoicing is in dollars.

 

CONTACTS:

Sarah West/Aideen Lee

Brunswick

+44 (0)207 404 5959

 

Ian Thornton/Jonathan Lawton

ARM Holdings plc

+44 (0)1628 427800


Financial Review

(IFRS unless otherwise stated)

 

Total revenues

Total dollar revenues in Q4 2012 were $262.8 million, up 21% versus Q4 2011. Q4 sterling revenues of £164.2 million were up 19% year-on-year.

Full year dollar revenues were $913.1 million, up 16% on 2011.

 

License revenues

Total dollar license revenues in Q4 2012 increased by 28% year-on-year to $100.6 million, representing 38% of group revenues. License revenues comprised $85.2 million from PD and $15.4 million from PIPD.

During Q4, additional partners entered into long-term commitments to use ARM technology where the revenue associated with these agreements goes into backlog and will be recognised in future quarters as engineering and delivery milestones are achieved. These agreements included the signing of two ARMv8 architecture licenses and five licenses with lead partners for ARM’s Cortex-A50 series processors. As a result, group order backlog at the end of Q4 2012 was up 25% sequentially.

Full-year dollar licensing revenues were $339.3 million, up 19% on 2011.

 

Royalty revenues

Royalties are recognised one quarter in arrears with royalties in Q4 2012 generated from semiconductor unit shipments in Q3 2012. Total dollar royalty revenues in Q4 2012 increased year-on-year by 19% to $136.8 million, representing 52% of group revenues. Royalty revenues comprised $121.8 million from PD and $15.0 million from PIPD. PD dollar royalty revenues in Q4 2012 increased 21% year-on-year. This compares with industry revenues which were down 3% over the relevant shipment period (i.e. Q3 2012 compared to Q3 2011).

Full-year dollar royalty revenues were $473.9 million, up 17% on 2011. This compares with industry revenues that declined 2% over the relevant shipment period (i.e. Q3 2011 to Q3 2012), demonstrating ARM’s continuing market share gains over the last 12 months.

 

Development Systems and Service revenues

Sales of development systems in Q4 2012 were $13.9 million, an increase of 10% year-on-year and representing 5% of group revenues. Full-year development systems revenue were $54.9 million, up 5% year-on-year.

Service revenues were $11.5 million in Q4 2012, up 7% year-on-year, and $45.0 million for the full-year, up 9% year-on-year.

 

Gross margins

Gross margins in Q4 2012, excluding share-based payments charges of £0.6 million (see below), were 95.1% compared to 94.6% in Q3 2012 and 96.0% in Q4 2011.

Full-year gross margin, excluding share-based payment costs of £2.1 million, was 94.8% compared to 95.1% in 2011.

 

Operating expenses and operating margin

Total IFRS operating expenses in Q4 2012 were £98.9 million (Q4 2011: £84.1 million) including share-based payment costs and related payroll taxes of £15.6 million (Q4 2011: £13.2 million), and amortisation of intangible assets and other acquisition-related charges and impairments of £3.6 million (Q4 2011: £5.1 million).

Total share-based payment costs and related payroll tax charges of £16.2 million in Q4 2012 were included within cost of revenues (£0.6 million), research and development (£8.3 million), sales and marketing (£2.6 million) and general and administrative (£4.7 million).

Total IFRS operating expenses for the full-year 2012 were £336.9 million compared to £315.2 million in 2011.

Normalised income statements for Q4 and full-year 2012 and 2011 are included in notes 11.13 to 11.16 below which reconcile IFRS to the normalised non-IFRS measures referred to in this earnings release.

Normalised operating expenses were £79.7 million in Q4 2012 compared to £72.3 million in Q3 2012 and £65.8 million in Q4 2011. Given the strong revenue and bookings performance in the quarter, Q4 operating expenses included incremental bonus and sales commission costs of approximately £5 million. There was also a charge of approximately £2 million due to the impact of a weaker dollar on the accounting for derivative instruments.

Normalised expenses after these one-off items were around £73 million in Q4.

Given the ongoing investment in our research and development teams, normalised operating expenses in Q1 2013 (assuming effective exchange rates similar to current levels) are expected to be in the range £75-77 million.

Normalised operating margin was 46.6% in Q4 2012, compared to 44.6% in Q3 2012 and 48.2% in Q4 2011. Normalised operating margin in the full-year 2012 was 45.6% compared to 45.1% in 2011.

Normalised research and development expenses were £36.7 million in Q4 2012, representing 22% of revenues, compared to £32.2 million in Q3 2012 and £31.4 million in Q4 2011. Normalised sales and marketing expenses were £18.4 million in Q4 2012, being 11% of revenues, compared to £15.6 million in Q3 2012 and £17.3 million in Q4 2011. Normalised general and administrative expenses were £24.6 million in Q4 2012, representing 15% of revenues, compared to £24.5 million in Q3 2012 and £17.1 million in Q4 2011.

Total normalised operating expenses for the full-year 2012 were £284.2 million compared to £245.9 million in 2011.

 

Earnings and taxation

Profit before tax was £59.5 million in Q4 2012 compared to £49.7 million in Q4 2011. After adjusting for acquisition-related and share-based payment costs, disposal and impairment of investments and share of results of joint ventures, normalised profit before tax in Q4 2012 was £80.0 million compared to £69.0 million in Q4 2011. The Group's effective normalised tax rate was 28.8% in Q4 2012 (IFRS: 28.7%) giving a full-year normalised tax rate of 25.8% (IFRS: 27.3%). The tax rate in Q4 2012 was higher than in the first nine months of the year due primarily to the partial de-recognition of an existing deferred tax asset considered non-recoverable following a change in US state law. With the introduction of the Patent Box tax regime in April 2013, ARM’s full-year normalised effective tax rate in 2013 is expected to be around 20%.

In Q4 2012, fully diluted earnings per share were 3.04 pence (14.8 cents per ADS) compared to earnings per share of 2.40 pence (11.2 cents per ADS) in Q4 2011. Normalised fully diluted earnings per share in Q4 2012 were 4.08 pence (19.9 cents per ADS) compared to 3.71 pence (17.3 cents per ADS) in Q4 2011.

Full-year 2012 fully diluted earnings per share prepared under IFRS were 11.51 pence compared to earnings per share of 8.19 pence in 2011. Normalised fully diluted earnings per share for 2012 were 14.70 pence per share compared to 12.45 pence per share in 2011

.

Balance sheet

Intangible assets at 31 December 2012 were £530.7 million, comprising goodwill of £519.4 million and other intangible assets of £11.3 million, compared to £522.6 million and £12.6 million respectively at 30 September 2012.

Property, plant and equipment has increased from £18.1 million at 31 December 2011 to £36.0 million at 31 December 2012 mainly as a result of the construction and fit-out of a Data Centre Facility in Cambridge.

Deferred tax assets have reduced from £105.9 million at 31 December 2011 to £70.1 million at 31 December 2012 due to a combination of lower assets on outstanding share options and awards and the partial de-recognition of UK and US deferred tax assets following a reduction in applicable tax rates and changes in tax law (as noted above).

Total accounts receivable were £124.5 million at 31 December 2012, compared to £98.3 million at 30 September 2012.

Days sales outstanding (DSOs) were 48 at 31 December 2012 compared to 47 at 30 September 2012.


Cash flow and dividend

Net cash generation in Q4 2012 was £74.1 million. Net cash at 31 December 2012 was £520.2 million compared to £477.9 million at 30 September 2012.

The directors recommend payment of a final dividend in respect of 2012 of 2.83 pence per share, up 35%, which taken together with the interim dividend of 1.67 pence per share paid in October 2012, gives a total dividend in respect of 2012 of 4.5 pence per share, an increase of 29% on the total dividend of 3.48 pence per share in 2011, continuing the steady growth in dividends in recent years through challenging economic cycles. Subject to shareholder approval, the final dividend will be paid on 17 May 2013 to shareholders on the register on 19 April 2013.

 

Operating review

Processor licensing

36 processor licenses were signed in Q4 2012.

Fifteen of the licenses signed were for ARM’s Cortex-A series processors, mainly for markets such as smartphones, mobile computers, industrial PCs, servers and enterprise networking. These included six licenses for ARM’s latest 64-bit Cortex-A50 series processor, three licenses for the Cortex-A15 processor and four for the Cortex-A7 processor. Cortex-A15 and Cortex-A7 together form the ARM big.LITTLE technology which delivers both higher performance and lower power for next generation smartphones and mobile computers. To date, sixteen companies have been enabled with the big.LITTLE technology.

During the quarter ARM also signed two further ARMv8 architecture licenses, for use in multiple end markets including supercomputing, mobile and enterprise applications, and two licenses with lead partners for ARM’s next generation Cortex-R and Cortex-M series products.

The embedded and real-time markets continue to create licensing opportunities and this quarter ARM signed five
Cortex-R and six Cortex-M series licenses. These licenses were signed for a variety of end applications, including baseband modems, high-end networking, medical applications and industrial microcontrollers.

ARM also signed seven licenses for its Mali graphics processors for use in entry-level and high-end smartphones, mobile computing, consumer electronics and automotive infotainment, including one new licensee for ARM’s Mali technology.

Q4 2012 and Cumulative Processor Licensing Analysis

Existing

Licensees

New
Licensees

Quarter
Total

Cumulative Total*

ARM7™

171

ARM9™

273

ARM11™

1

1

80

Cortex-A

13

2

15

132

Cortex-R

4

1

5

33

Cortex-M

2

4

6

168

Mali

7**

7

75

Other

1

1

2

24

Total

27

9

36

956

* Adjusted for licenses that are no longer expected to generate royalties

** Includes one existing ARM customer taking their first Mali license

 

Processor Design Wins and Ecosystem Development

Many leading technology companies have announced details of their ARM processor-based product developments in recent months. These included:

· Samsung announcing its Exynos 5 Octa chip, the world’s first application processor to use ARM’s big.LITTLE technology. The application processor offers higher performance and up to 70% improvement in energy efficiency compared to previous generations of Exynos processors

· Broadcom announcing that it had licensed both the ARMv7 and ARMv8 architectures and that it intends to use this technology for a range of end markets, including set-top-boxes and broadband access chips

· Red Hat and Applied Micro announcing a collaboration around ARM’s 64-bit technology for servers. Red Hat intends to make its server software available on Applied Micro’s X-Gene Server-on-Chip design

· Infineon expanding its microcontroller family utilising the Cortex-M4 technology to digital power convertors, switching and uninterruptable power supplies

· Xilinx unveiling its Zynq-7000 programmable System-on-Chip automotive driver assistance systems. The Zynq-7000 chips are based around a dual-core Cortex-A9 processor

· ARM, Cadence and Samsung taping out the first 14nm FinFET Cortex-A7 test chips. These test chips will demonstrate ARM’s most power efficient processor manufactured on Samsung’s advanced low-power process

Many more partner announcements can be found on the ARM website at www.arm.com/news.

 

Processor royalties

Q4 revenue came from the sales of about 2.5 billion ARM processor-based chips, up 13% year-on-year. ARM's average royalty revenue per chip increased to 4.8 cents, compared to 4.5 cents one year ago, driven primarily by strong growth in Cortex-A class processor shipments (doubling year-on-year) and in the number of chips containing Mali graphics (increasing more than four times year-on-year). ARM typically receives a higher royalty percentage for chips incorporating Cortex-A class processors and an additional royalty if these chips also contain a Mali graphics processor. In Q4, about a quarter of Cortex-A based chips also contained a Mali processor.

ARM continued to gain share across all its target markets. Sales of ARM processor-based chips into consumer electronics, including digital TVs and set-top-boxes were particularly strong, more than doubling year on year. ARM processor-based microcontrollers also performed well, increasing 25% over Q4 last year.

 

Q4 2012 Processor Unit Shipment Analysis

Processor Series

Unit Shipments

Market

Unit Shipments

ARM7

33%

Mobile

51%

ARM9

19%

Enterprise

16%

ARM11

8%

Home

5%

Cortex-A

11%

Embedded

28%

Cortex-R

3%

Cortex-M

26%

 

PIPD licensing

During the quarter ARM signed three further royalty bearing platforms licenses. These included two more licenses for 14nm FinFET and another platform license with a leading foundry at 40nm. ARM has now signed a total of 99 platform licenses.

Q4 2012 and Cumulative PIPD Licensing Analysis

Process Node

(nm)

Total

Platform analysis
(nm)

Royalty Bearing Foundry
Platforms at Each Node *

New Royalty-Bearing

14nm

2

16/14

4

Foundry Platform Licenses

40nm

1

22/20

4

32/28

8

45/40

7

Total for

Cumulative

65-130

38

Quarter

Total

180 to 250

38

POP IP

5

41

Total

99

* Adjusted for licenses that are no longer expected to generate royalties

ARM continues to see strong demand for physical IP optimised for use with processors (POP IP). POP IP enables the licensee to more readily achieve high-performance, low-power processor implementations through specially optimised physical IP technology. For every chip implemented using POP IP, ARM receives a royalty both for the processor in the chip and for the physical IP.

 

PIPD royalties

Royalties are recognised one quarter in arrears with royalties in Q4 generated from semiconductor unit shipments in Q3. Underlying PIPD royalties in Q4 2012 were $14.6 million, up 21% year-on-year. In 2012, PIPD’s underlying royalty revenue grew 17% year-on-year. This compares with foundry revenues that increased 7% over the relevant shipment period (i.e. Q3 2012 compared to Q3 2011).


People

At 31 December 2012, ARM had 2,392 full-time employees, a net increase of 276 since the start of the year, being mainly engineers joining ARM’s processor R&D teams. At the end of Q4, the group had 993 employees based in the UK, 583 in the US, 296 in Continental Europe, 347 in India and 173 in the Asia Pacific region.

 

Principal risks and uncertainties

The principal risks and opportunities faced by the Group are included within the “Risks and risk management” section of the 2011 Annual Report and Accounts filed with Companies House in the UK. Details of other risks and uncertainties faced by the Group are noted within the Annual Report on Form 20-F for the year ended 31 December 2011 which is on file with the Securities and Exchange Commission (the “SEC”) and is available on the SEC’s website at www.sec.gov. There have been no changes to these risks that would materially impact the group in the foreseeable future. These include but are not limited to: ARM's quarterly results may fluctuate significantly and be unpredictable which could adversely affect the market price of ARM ordinary shares; general economic conditions may reduce ARM's revenues and harm its business; ARM may have to protect its intellectual property or defend the technology against claims that we have infringed others’ proprietary rights; an infringement claim against ARM’s technology may result in a significant damages award which would adversely impact ARM’s operating results; companies within the semiconductor industry may consolidate reducing the number of customers that ARM may sell its technology to; for ARM to enter new markets or develop new technology may require significant investment and may not result in profitable operations; and ARM competes in the intensely competitive semiconductor market.

 

Full Earnings Tables [600KB PDF]

 





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