ARM rides record Q2 order books
Cambridge superchip designer ARM Holdings has predicted a year of strong growth in line with market expectations after a bullish second quarter boosted the interim results.
Sterling revenues were 16 per cent ahead for the six months to the end of June and record bookings were recorded in the second quarter.
Second quarter revenues were 14 per cent up year-on-year to £65.7m. CEO Warren East revealed that 21 processor and 24 physical IP licenses were signed in the quarter and that 555 million ARM Powered® products were shipped, up 50 per cent on the same period of 2005.
ARM also extended its IP portfolio through the acquisition of Falanx Microsystems, a 3D graphics IP company.
East said: “We are encouraged by the licensing activity we have seen in Q2 which generated a record bookings quarter for the group.
“Strong licensing of our newest processors and physical IP has helped to generate sequential increases of more than 15 per cent in license revenues and more than 10 per cent in the group’s order backlog.
“With good first half results behind us and a robust opportunity pipeline for licensing in the second half, we remain confident of achieving a year of strong growth for ARM in line with current market expectations”
Total revenues for the half-year were 15 per cent up on the 2005 interims at £130.4m.
ARM also managed to returen £29m to shareholders via a rolling share buyback programme and dividend.
Global headcount in the six months grew by exactly 100 to 1,471 full time employees with 29 of these jobs stemming from the continued expansion of ARM’s Bangalore design centre and 36 beingadded through the acquisitions of Falanx and PowerEscape.
ARM still has more employees in the UK than any other centre – 610 compared to 523 in the US, 127 in Continental Europe, 162 in India and 49 in the Asia Pacific Region.