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.
Simon Segars, Chief Executive Officer, said:
"Q2 2015 has been a strong quarter for ARM with a highly diverse range of leading companies choosing to license ARM's latest processors and physical IP for their future product developments. ARM has been investing in advanced technology products for mobile devices, automotive applications and enterprise infrastructure, and in Q2 ARM signed licences for many of these new products. This licensing activity will help to grow the royalty revenue opportunity for years to come.
As the addressable market for ARM technology grows, we continue to invest in the development of innovative products to support long-term returns for shareholders."
