Progress on key growth drivers in Q1
Growth in adoption of ARM® technology
o 22 processor licenses signed across multiple end markets from smartphones and mobile computing to digital TVs and wearable technology
Advanced technology enables higher royalty percentage per chip
o 9 Cortex™-A processor licenses and another ARMv8 architecture license signed3 further partners enabled with ARM's v8 big.LITTLE technology
o 3 Mali graphics processor licenses signed, including a license for Skrymir, ARM's most advanced graphics processor
o POP™ IP helps optimise ARM processor implementations. ARM signed 2 further POP IP licenses in Q1
Growth in shipments of chips based on ARM processor technology
o 2.6 billion ARM-based chips shipped, up 35% year-on-year
o Strong year-on-year shipment growth across all segments; mobile chips up 25%, embedded up 50% year-on-year
o Continued penetration of Mali graphics processors with shipments up more than 5 times year-on-year
Warren East, Chief Executive Officer, said:
"ARM has delivered another quarter of strong revenue and earnings growth, driven by robust licensing and record royalty revenue.
Everyday devices are becoming smarter, more connected and more energy efficient, which is increasing the applicability of and demand for ARM's technology. In particular, this quarter ARM saw strong uptake of its next generation, higher royalty bearing ARMv8, Mali and big.LITTLE technology for smartphones and mobile computers.
ARM's royalty revenues again outpaced the wider semiconductor industry. This outperformance has been driven by market share gains in key end markets including digital TVs and microcontrollers. In addition, the growth in smartphones and tablets continues to benefit ARM. Even low cost smart devices can contain multiple ARM-based chips and be based on ARM's advanced Cortex-A series technology and Mali graphics processors."
Outlook
ARM has made an encouraging start to 2013 with more leading companies choosing to deploy ARM technology in their products and we therefore expect group revenues for the full-year 2013 to be at least in line with current market expectations.
Relevant industry data for Q1 2013, being the shipment period for ARM's Q2 royalties, points to a sequential decrease in industry-wide revenues of around 10%. In this context we expect group revenues for the second quarter to be in line with current market expectations.
