ARM Sales Up 23% on Artisan Merger
Online staff -- 4/19/2005
Electronic News
ARM Holdings plc saw 23 percent sales growth in its Q1, thanks to its aggregation with Artisan.
Total revenue of $103.2 million (55 million United Kingdom pounds) was made up of $79.2 million from ARM's original business and $24 million from the physical intellectual property division (PIPD).
Original business was up 27 percent year-over-year for the quarter, while PIPD rose 12 percent year-over-year. ARM reported PIPD backlog was near historical highs at the end of Q1, the first full quarter after its merger with Artisan.
"I am pleased to announce that the integration of Artisan and ARM is progressing to plan and that the momentum in the business continues, with dollar revenues up 23 percent on the aggregate ARM and Artisan revenues in Q1 2004," Warren East, CEO, said in a statement.
"We are well placed to capitalize on the opportunities that the combination of ARM and Artisan brings and are encouraged that Q1 has seen the first instances of existing ARM licensees taking Artisan's physical IP. This progress gives us further confidence that both underlying businesses can achieve at least 20 percent growth in dollar revenues as outlined at our Q4 results," he added.
ARM said the minimum 20 percent growth will be due to underlying businesses in the full year 2005, with license revenues underpinned by both a healthy order backlog and a strong sales opportunity pipeline, good underlying momentum in royalty revenues and continued steady growth in development systems revenues.
March quarter income before income tax was $23.9 million (12.5 million pounds), including acquisition-related charges of $11.5 million (6 million pounds) and other deferred stock-based compensation of $573,549 (300,000 pounds).
Earnings per American Depositary Share in Q1 were 3.6 cents (0.6 pence).
Group gross margins for the first quarter were 89 percent, comprising 93 percent for the original ARM business and 75 percent for PIPD, ARM said
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