EMBARGOED until 7.00am BST 29 April 2009 ARM HOLDINGS PLC REPORTS RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2009 A conference call discussing these results will be audiocast today at 08:30 BST at www.arm.com/ir CAMBRIDGE, UK, 29 April 2009-ARM Holdings plc ((LSE :ARM ); (NASDAQ :ARMH )), the world's leading semiconductor intellectual property supplier, announces its unaudited financial results for the first quarter ended 31 March 2009 Q1 Financial Highlights (IFRS unless otherwise stated) . Revenues at USD120.9m down 10% year-on-year, (GBP79.9m, up 18%) . Normalised operating margin at 29.5% (IFRS 15.9%) . Normalised PBT at GBP23.9m, up 12% (IFRS GBP13.1m, up 9%) . Normalised EPS at 1.38p, up 18% (IFRS 0.77p, up 54%) . GBP13.5m cash generated in the quarter . Reiterating FY 2009 guidance Q1 2009 - Financial Summary Normalised* IFRS GBPM Q1 2009 Q1 2008 % Change Q1 2009 Q1 2008 Revenue 79.9 67.9 18% 79.9 67.9 Profit before tax 23.9 21.3 12% 13.1 12.0 Operating margin 29.5% 30.6% 15.9% 16.8% Earnings per share (pence) 1.38 1.17 18% 0.77 0.50 Net cash generation** 13.5 13.7 Effective revenue fx rate 1.51 1.98 (USD/GBP) Outlook We reiterate our previous guidance for 2009; that we expect group dollar revenues for the full-year to be at least in line with market expectations, unless industry conditions deteriorate to a greater extent than is generally anticipated. Overall semiconductor industry activity continued to slow in Q1 2009, and whilst there are early signs of improving visibility in some sectors, the near term remains uncertain. However, with demand for ARM's portfolio of products remaining robust, we believe that the Company is positioned to continue to perform resiliently in this difficult trading environment. Warren East, Chief Executive Officer, said:"ARM has made an encouraging start to 2009. Leading semiconductor and OEM companies are continuing to utilise ARM technology, creating healthy demand for our latest processors and physical IP products. ARM has outperformed the semiconductor industry in the first quarter. ARM's Q1 dollar revenues are 10% lower than a year ago whilst overall industry revenues have declined by about 30% over the same period(1). This outperformance, combined with careful management of costs and the strengthening of the dollar against sterling, has given rise to year-on-year earnings growth of 18% and further robust net cash generation in the first quarter." (1)Source: Gartner, March 2009 Q1 Operational Highlights . Processor Division (PD): Strong licensing base driving royalty momentum . Base of licenses increased to more than 600 with 17 additional processor licenses signed in Q1 o Includes 5 licenses for Mali graphics processor and 4 Cortex-M licenses for microcontrollers . Mix of higher value chip shipments grows average royalty rate to 6.0c o ARM11-based chip shipments increase 50% year on year; now more than 5% of total shipments . Physical IP Division (PIPD): Licensing advanced technology nodes to IDMs and foundries . 12 licenses for physical IP in Q1, 6 at advanced nodes, including 32nm . First delivery of an ARM processor manufactured on ARM's 32nm physical IP Q1 2009 - Revenue Analysis Revenue (USDm)*** Revenue (GBPm) Q1 2009 Q1 2008 % Change Q1 2009 Q1 2008 % Change PD Licensing 31.9 36.3 -12% 19.6 18.3 8% Royalties 50.3 54.8 -8% 35.1 27.8 26% Total PD 82.2 91.1 -10% 54.7 46.1 19% PIPD Licensing 8.8 11.8 -26% 5.4 5.9 -9% Royalties(1) 8.0 9.1 -12% 5.5 4.7 20% Total PIPD 16.8 20.9 -19% 10.9 10.6 4% Development Systems 14.6 14.2 3% 10.0 7.1 39% Services 7.3 8.1 -10% 4.3 4.1 5% Total Revenue 120.9 134.3 -10% 79.9 67.9 18% (1)Includes catch-up royalties in Q1 2009 of USD1.6m (GBP1.0m) and in Q1 2008 of USD0.8m (GBP0.4m). * Normalised figures are based on IFRS, adjusted for acquisition- related, share-based compensation and restructuring charges and profit on disposal and impairment of available-for-sale investments. For reconciliation of IFRS measures to normalised non- IFRS measures detailed in this document, see notes 4.1 to 4.20. ** Before dividends and share buybacks, net cash flows from share option exercises, disposals of available-for-sale investments and acquisition consideration - see notes 4.11 to 4.14. *** Dollar revenues are based on the group's actual dollar invoicing, where applicable, and using the rate of exchange applicable on the date of the transaction for invoicing in currencies other than dollars. Approximately 95% of invoicing is in dollars. **** Each American Depositary Share (ADS) represents three shares. CONTACTS: Sarah West/Pavla Shaw Tim Score/Ian Thornton Brunswick ARM Holdings plc +44 (0)207 404 5959 +44 (0)1628 427800 Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/3300R_1-2009-4-28.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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