ARM post financial results for Q2 2013: £171.2 million in revenue with £86.6 million in profit before tax

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ARM have posted their financial results for Q2 2013, reaching a total revenue of £171.2 million and a net profit of £86.6 million before taxes. Their revenue sees an increase of 26-percent year of year with profit being an even 30-percent increase. Obviously with the future of smartphones and tablets getting bigger and bigger, ARM have nothing but increased profits in the future amusing they aren’t hit with another lawsuit that set them back £41.8 million, which brings their IFRS profit to just £15 million. Check out the snippet of the press release below or the source link for the full PDF.

A presentation of the results will be webcast today at 09:30 BST at ARM HOLDINGS PLC REPORTS RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 JUNE 2013 www.arm.com/ir
CAMBRIDGE, UK, 24 July 2013 —ARM Holdings plc announces its unaudited financial results for the second quarter and half year ended 30 June 2013.
Q2 2013 – Financial Summary
Normalised* IFRS Q2 2013 Q2 2012 % Change Q2 2013 Q2 2012 Revenue ($m) 264.3 213.0 24% 264.3 213.0 Revenue (£m) 171.2 135.5 26% 171.2 135.5 Operating margin 48.6% 46.4% 7.4% 37.8% Profit before tax (£m) 86.6 66.5 30% 15.0 54.8 Earnings per share (pence) 4.89 3.58 37% 0.75 2.83 Net cash generation** 96.3 46.9 Effective revenue fx rate ($/£) 1.54 1.57
H1 2013 – Financial Summary Normalised* IFRS H1 2013 H1 2012 % Change H1 2013 H1 2012 Revenue ($m) 528.2 422.4 25% 528.2 422.4 Revenue (£m) 341.5 268.0 27% 341.5 268.0 Operating margin 49.5% 45.5% 22.7% 37.2% Profit before tax (£m) 176.0 128.5 37% 82.1 106.2 Earnings per share (pence) 10.19 6.93 47% 4.44 5.53 Net cash generation** 155.1 105.2 Effective revenue fx rate ($/£) 1.55 1.58
Q2 Financial Highlights • Group revenues in US$ up 24% year-on-year (£ revenues up 26% year-on-year) • Order backlog up more than 10% sequentially • Normalised profit before tax and earnings per share up 30% and 37% year-on-year respectively (IFRS PBT and EPS down 73% and 73% year-on-year respectively) • £41.8m costs incurred in Q2, being ARM’s contribution to a full and final settlement of certain patent related litigation, charged in the IFRS reported results • Record net cash generation of £96m • Interim dividend increased by 26%
Progress on key growth drivers in Q2 • Growth in adoption of ARM® o 25 processor licenses signed for a wide range of applications from smartphones and mobile computers, to storage and embedded microcontrollers technology o Advanced technology enables a higher royalty percentage per chip o 5 Cortex™-A processor licenses signed, including another Partner licensing v8 processors that support ARM’s big.LITTLE technology o 7 Mali graphics processor licenses signed o POP™ IP helps optimise ARM processor implementations. ARM signed 5 further POP IP licenses in Q2 • Growth in shipments of chips based on ARM processor technology o 2.4 billion ARM-based chips shipped, up 20% year-on-year o Continued penetration of processors containing both Cortex-A and Mali graphics processors Outlook ARM enters the second half of 2013 with a record order backlog and a robust opportunity pipeline. Relevant data for the second quarter, being the shipment period for ARM’s Q3 royalties, points to a small sequential increase in industry revenues. Building on our strong performance in the first half, we expect overall Group dollar revenues for full year 2013 to be at least in line with market expectations.
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Simon Segars, Chief Executive Officer, said: “ARM has delivered another quarter of strong revenue and normalised earnings growth. We continue to see demand for ARM’s next generation technology, and in Q2 we signed five licenses for Cortex-A series processors, and seven licenses for ARM’s Mali graphics processor, demonstrating our leadership in both low-power processor and 3D graphics technology. During the quarter, our Partners announced exciting new design wins as ARM-based chips were selected for high-volume OEM products. These included many new smartphones and tablets, ARM-based 64-bit servers and mobile base stations.
In Q2, ARM’s processor royalty revenue again outperformed the semiconductor industry, growing at 24% year-on-year. In part this outperformance was driven by the growth in smartphones and mobile computing. These smart devices increasingly contain both ARM’s higher-royalty yielding Cortex-A processor technology and also ARM’s Mali graphics.”
Q2 2013 – Revenue Analysis Revenue ($m)*** Revenue (£m) Q2 2013 Q2 2012 % Change Q2 2013 Q2 2012 % Change PD Licensing 88.3 67.0 32% 56.9 42.6 34% Royalties 119.3 96.3 24% 77.7 61.5 26% Total PD 207.6 163.3 27% 134.6 104.1 29% PIPD Licensing 14.3 11.6 23% 9.2 7.3 25% Royalties 16.0 1 13.7 16% 10.4 8.6 21% Total PIPD 30.3 25.3 19% 19.6 15.9 23% Development Systems 13.4 13.3 1% 8.7 8.5 3% Services 13.0 11.1 17% 8.3 7.0 19% Total Revenue 264.3 213.0 24% 171.2 135.5 26%
1 Includes catch-up PIPD royalties of $1.4m (£0.9m) in Q2 2013 and $1.5m (£1.0m) in Q2 2012.
H1 2013 – Revenue Analysis Revenue ($m)*** Revenue (£m) H1 2013 H1 2012 % Change H1 2013 H1 2012 % Change PD Licensing 169.1 132.2 28% 108.6 83.7 30% Royalties 242.7 189.2 28% 158.1 120.4 31% Total PD 411.8 321.4 28% 266.7 204.1 31% PIPD Licensing 28.4 23.2 22% 18.1 14.7 23% Royalties 32.6 1 26.8 21% 21.2 16.9 25% Total PIPD 61.0 50.0 22% 39.3 31.6 24% Development Systems 30.0 28.8 4% 19.3 18.3 6% Services 25.4 22.2 14% 16.2 14.0 15% Total Revenue 528.2 422.4 25% 341.5 268.0 27%
1 Includes catch-up PIPD royalties of $1.4m (£0.9m) in H1 2013 and $3.6m (£2.3m) in H1 2012.
* Normalised figures are based on IFRS, adjusted for share-based payment costs, amortisation of intangibles, acquisition-related charges, impairments of investments, IP indemnity and similar charges, Linaro-related charges and share of results of joint venture, and profit or loss on disposal of available-for-sale financial assets. For reconciliation of IFRS measures to normalised non-IFRS measures detailed in this document, see notes 12.13 to 12.16. ** 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, other acquisition-related payments, share-based payroll taxes, payments related to joint ventures and Linaro, and deducting inflows from share option exercises and investment disposal proceeds – see notes 12.8 to 12.12 *** US Dollar revenues are based on the group’s actual dollar invoicing, where applicable, and using the r

Source: ARM

Craig O'Sullivan

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