ARM HOLDINGS PLC REPORTS RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 JUNE 2015

A presentation of the results will be webcast today at 09:30 BST atwww.arm.com/ir

CAMBRIDGE, UK, 22 July 2015 - ARM Holdings plc [(LSE: ARM); (NASDAQ: ARMH)] announces its unaudited financial results for the second quarter and half year ended 30 June 2015

Q2 2015 - Financial Summary Normalised*
Q2 2015 Q2 2014 % Change
IFRS
Q2 2015 - Financial Summary Normalised*
Q2 2015 Q2 2014 % Change
Q2 2015 Q2 2014 % Change
Revenue ($m) 357.1 309.6 15%
Revenue (£m) 228.5 187.1 22% Operating expenses (£m) 99.3 87.7 13% Operating margin 52.9% 48.9%
Profit before tax (£m) 123.9 94.2 32%
Earnings per share (pence) 7.28 5.43 34% Net cash generation (£m) ** 93.3 86.7
357.1 309.6 15%
228.5 187.1 22%
127.3 113.4 12%
40.4% 34.9%
94.7 68.0 39%
5.42 3.91 39%

Effective revenue fx rate ($/£) 1.56 1.65

H1 2015 - Financial Summary Normalised*
H1 2015 H1 2014 % Change
IFRS
H1 2015 - Financial Summary Normalised*
H1 2015 H1 2014 % Change
H1 2015 H1 2014 % Change
Revenue ($m) 705.2 614.8 15%
Revenue (£m) 456.0 373.7 22% Operating expenses (£m) 199.3 171.9 16% Operating margin 52.3% 49.7%
Profit before tax (£m) 244.4 191.3 28% Earnings per share (pence) 14.40 11.02 31% Net cash generation (£m) ** 161.8 126.7
705.2 614.8 15%
456.0 373.7 22%
242.7 215.0 13%
42.5% 37.9%
198.1 146.0 36%
11.40 8.30 37%

Effective revenue fx rate ($/£) 1.55 1.64

* Normalised figures are based on IFRS, adjusted for acquisition-related charges, share-based payment costs, restructuring charges, Linaro- related charges, share of results of joint venture, intangible amortisation, and profit/(loss) on disposal of investments net of impairment. For reconciliation of IFRS measures to normalised non-IFRS measures detailed in this document, see notes 11.8 to 11.11.

** Net cash generation is defined as movement on cash, cash equivalents, short-term and long-term deposits and similar instruments, adding back dividend payments and share buy-backs, investment and acquisition consideration, other acquisition-related payments, restructuring payments, share-based payroll taxes, investment in and loans to joint venture, payments to Linaro, and deducting inflows from share option exercises - see notes 11.3 to 11.7.

Q2 2015 Financial Summary

· Group revenues in US$ up 15% year-on-year (£ revenues up 22% year-on-year)

· Processor licensing revenue in US$ up 3% year-on-year

· Processor royalty revenue in US$ up 31% year-on-year

· Normalised profit before tax and earnings per share up 32% and 34% year-on-year respectively

· Interim dividend increased by 25%

Progress on key growth drivers in Q2

· Growth in adoption of ARM® processor technology

o Record 54 processor licences signed for a broad range of applications, from biometric sensors for mobile payments to automotive engine control

· Maintained momentum in licensing of advanced technology, underpinning future royalty revenue growth

o 1 new subscription licence signed with a major Chinese OEM

o 7 ARMv8-A processor licences signed, including three lead licences for next-generation processors

o 9 Mali™ multimedia processor licences signed, including three licences for future technology

o 5 POP IP licences signed, including one for a future processor optimised for a FinFET process

· Growth in shipments of chips based on ARM technology

o 3.4 billion ARM-based chips shipped, up 26% year-on-year

o Strong year-on-year growth for chips going into mobile devices, enterprise infrastructure and embedded applications such as microcontrollers, smart sensors and secure smartcards.

Outlook

ARM enters the second half of 2015 with a robust pipeline of opportunities for licensing. Available industry data for the second quarter, being the shipment period for ARM's Q3 royalties, points to a small sequential increase in industry revenues. Royalty revenue can grow faster than the overall industry due to increasing royalty per chip in mobile devices, and share gains beyond mobile. Assuming macroeconomic uncertainty does not further impact consumer spending we expect overall Group dollar revenues for full year 2015 to be in-line with current market expectations.

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