|
Q3 2012 – Financial Summary
|
Normalised* |
IFRS |
|
|||||||||
|
Q3 2012 |
Q3 2011 |
% Change |
Q3 2012 |
Q3 2011 |
|
|||||||
|
Revenue ($m) |
227.9 |
192.3 |
18% |
227.9 |
192.3 |
|
||||||
|
Revenue (£m) |
144.6 |
120.2 |
20% |
144.6 |
120.2 |
|
||||||
|
Operating margin |
44.6% |
44.6% |
35.8% |
34.0% |
|
|||||||
|
Profit before tax (£m) |
68.1 |
55.7 |
22% |
55.3 |
43.0 |
|
||||||
|
Earnings per share (pence) |
3.71 |
3.05 |
22% |
2.96 |
2.29 |
|
||||||
|
Net cash generation** |
88.0 |
43.7 |
|
|||||||||
|
Effective revenue fx rate ($/£) |
1.58 |
1.60 |
|
|||||||||
|
YTD 2012 – Financial Summary |
Normalised* |
IFRS |
||||||||||
|
YTD 2012 |
YTD 2011 |
% Change |
YTD 2012 |
YTD 2011 |
||||||||
|
Revenue ($m) |
650.3 |
568.0 |
14% |
650.3 |
568.0 |
|||||||
|
Revenue (£m) |
412.7 |
354.0 |
17% |
412.7 |
354.0 |
|||||||
|
Operating margin |
45.2% |
43.9% |
36.7% |
28.8% |
||||||||
|
Profit before tax (£m) |
196.6 |
160.7 |
22% |
161.6 |
107.3 |
|||||||
|
Earnings per share (pence) |
10.63 |
8.75 |
22% |
8.48 |
5.79 |
|||||||
|
Net cash generation** |
193.3 |
152.3 |
||||||||||
|
Effective revenue fx rate ($/£) |
1.58 |
1.60 |
||||||||||
Progress on key growth drivers in Q3
- Growth in adoption of ARM® processor technology
- 29 processor licenses signed for a broad range of applications, including deeply embedded products such as chips for hearing aids and automotive braking systems, and consumer electronics such as smartphones, TVs and tablets
- Momentum in high-end computing and networking applications continued, with the signing of one ARMv8 architecture license, one ARMv8 processor license and one Cortex-A15 processor license
- Growth in shipments of chips based on ARM processor technology
- 2.2 billion chips shipped, split equally between mobile and non-mobile segments
- Processor royalty revenue grew 27% year-on-year, driven by strong growth in Cortex-A and Mali-based chip
- Growth in outsourcing of new technology
- Mali™ graphics processor licenses signed, including three with new customers for Mali technology
- 4 physical IP Processor Optimisation Packs licensed, enhancing ARM’s royalty opportunity per chip
Warren East, Chief Executive Officer, said:
"ARM has delivered another quarter of strong revenue and earnings growth. As we move into an ever more connected world of mobile computing, cloud-based networks and the Internet-of-Things, ARM is seeing increased demand for its high performance and low power technology. This demand is helping to drive ARM’s licensing revenues and this quarter we saw market leaders license ARM’s advanced processor technology for next generation super smartphones, tablets, and mobile and embedded computing applications.
ARM’s royalty revenues outpaced the industry with continued market share gains in key end markets including digital TVs and microcontrollers. The increasing penetration of Cortex-A class technology and adoption of Mali graphics in consumer electronics also helped increase ARM’s overall royalty revenue per chip. This strong growth in licensing and royalty revenue allows ARM to keep investing for the future and deliver increased profits and cash generation."
Outlook
ARM enters the final quarter of 2012 with record order backlog and a robust opportunity pipeline. This combination points to another strong quarter for licensing revenue in Q4. ARM’s Q4 royalty revenue is generated from third quarter chip shipments. Data from our customers suggests a moderate sequential increase in ARM’s royalty revenue in Q4
|
Q3 2012 – Revenue Analysis |
Revenue ($m)*** |
Revenue (£m) |
|||||
|
Q3 2012 |
Q3 2011 |
% Change |
Q3 2012 |
Q3 2011 |
% Change |
||
|
PD |
|||||||
|
Licensing |
69.7 |
59.7 |
17% |
44.3 |
37.8 |
17% |
|
|
Royalties |
106.8 |
84.2 |
27% |
67.8 |
52.1 |
30% |
|
|
Total PD |
176.5 |
143.9 |
23% |
112.1 |
89.9 |
25% |
|
|
PIPD |
|||||||
|
Licensing |
13.7 |
12.9 |
6% |
8.6 |
8.2 |
5% |
|
|
Royalties1 |
14.3 |
12.6 |
13% |
9.1 |
7.8 |
17% |
|
|
Total PIPD |
28.0 |
25.5 |
9% |
17.7 |
16.0 |
11% |
|
|
Development Systems |
12.1 |
12.5 |
-3% |
7.6 |
7.8 |
-2% |
|
|
Services |
11.3 |
10.4 |
9% |
7.2 |
6.5 |
11% |
|
|
Total Revenue |
227.9 |
192.3 |
18% |
144.6 |
120.2 |
20% |
|
|
YTD 2012 – Revenue Analysis |
Revenue ($m)*** |
Revenue (£m) |
|||||
|
YTD 2012 |
YTD 2011 |
% Change |
YTD 2012 |
YTD 2011 |
% Change |
||
|
PD |
|||||||
|
Licensing |
201.9 |
169.0 |
19% |
128.0 |
106.4 |
20% |
|
|
Royalties |
295.9 |
256.5 |
15% |
188.2 |
158.5 |
19% |
|
|
Total PD |
497.8 |
425.5 |
17% |
316.2 |
264.9 |
19% |
|
|
PIPD |
|||||||
|
Licensing |
36.8 |
37.8 |
-3% |
23.3 |
23.9 |
-3% |
|
|
Royalties1 |
41.2 |
34.4 |
20% |
26.0 |
21.1 |
23% |
|
|
Total PIPD |
78.0 |
72.2 |
8% |
49.3 |
45.0 |
10% |
|
|
Development Systems |
41.0 |
39.8 |
3% |
26.0 |
24.8 |
5% |
|
|
Services |
33.5 |
30.5 |
10% |
21.2 |
19.3 |
10% |
|
|
Total Revenue |
650.3 |
568.0 |
14% |
412.7 |
354.0 |
17% |
|
Includes catch-up PIPD royalties of $4.0m (£2.5m) in YTD 2012 and $2.3m (£1.4m) in YTD 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 and Linaro™-related charges. For reconciliation of IFRS measures to normalised non-IFRS measures detailed in this document, see notes 5.13 to 5.16.
** Net cash generation is defined as movement on cash, cash equivalents, short-term and long-term deposits and borrowings, adding back dividend payments, investment and acquisition consideration, restructuring payments, other acquisition-related payments, share-based payroll taxes and Linaro-related payments, and deducting inflows from share option exercises and investment disposal proceeds – see notes 5.8 to 5.12.
*** 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
________________________________