ARM Holdings plc Reports 68% Growth in Third Quarter Revenues, 75% Growth in Pre Tax Profit.CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , UK--(BUSINESS WIRE)--Oct. 12, 1998--ARM Holdings plc (LSE LSE - Language Sensitive Editor :ARM)(Nasdaq:ARMHY) announces its unaudited financial results, for the third quarter and nine months ended Sept. 30, 1998. Third quarter revenues of (pound)11.2 million increased 68% compared to the same period last year and 13% from the second quarter of this year. Revenues for the nine months to Sept. 30, 1998 were (pound)29.8 million, an increase of 62% over the same period in 1997. Third quarter pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profit of (pound)2.5 million increased 75% compared to the same period last year and 10% from the second quarter. Pre-tax profit for the nine months to Sept. 30, 1998 was (pound)6.4 million, an increase of 98% over the same period in 1997. Third quarter fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of prepared under U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). were 3.2 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, (16.1 cents per ADS(a)) compared to 2.2 pence per share (11.0 cents per ADS(a)) in the same period last year. Under U.S. GAAP, non-cash compensation costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc stock options granted from March 1997 to March 1998 were recognized in the amount of 0.4 pence per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share (1.8 cents per ADS(a)) in the third quarter of 1998 and 0.3 pence per fully diluted share (1.7 cents per ADS(a)) in the third quarter of 1997. Fully diluted earnings for the nine months to Sept. 30, 1998 were 8.7 pence per share (44.4 cents per ADS(a)) compared to 5.2 pence per share (26.2 cents per ADS(a)) in the same period last year. Commenting on the results, Robin Saxby Saxby could be Places
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Jonathan Brooks, chief financial officer, commented, "Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the nine months to Sept. 30, 1998 were 18% compared to 15% for the corresponding period last year. While the outlook for revenues in the fourth quarter is good, costs are expected to rise with our increased R+D expenditure and operating margins are expected to remain under pressure." ARM ARM, a leading intellectual property (IP) provider, licenses high performance, low-cost, power-efficient microprocessors This is a list of microprocessors. Intel
Note to Editors: ARM, Thumb, StrongARM and ARM Powered are registered trademarks of ARM Limited. (a) Each American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (ADS) represents three shares -0-
ARM Holdings plc
Unaudited Third Quarter and Nine Months Results -- U.S. GAAP
(in thousands except per share data)
Quarter Quarter 9 months 9 months 9 months
Ended Ended Ended Ended Ended
Sep-30 Sep-30 Sep-30 Sep-30 Sep-30
1998 1997 1998 1997 1998(1)
(pound) (pound) (pound) (pound) $'000
'000 '000 '000 '000
Revenues
Product revenues 9,237 5,004 24,496 13,823 41,570
Service revenues 1,972 1,680 5,299 4,524 8,992
Total revenues 11,209 6,684 29,795 18,347 50,562
Cost of revenues
Product costs 968 329 2,749 2,335 4,665
Service costs 1,218 719 3,116 2,219 5,288
Total cost of
revenues 2,186 1,048 5,865 4,554 9,953
Gross profit 9,023 5,636 23,930 13,793 40,609
Research and
development 3,652 1,745 8,515 4,291 14,449
Sales and
marketing 1,756 1,535 5,393 3,629 9,151
General and
administration 1,588 1,100 4,550 3,080 7,721
Total operating
expenses 6,996 4,380 18,458 11,000 31,321
Income from
operations 2,027 1,256 5,472 2,793 9,288
Interest and similar
income, net 463 178 997 452 1,692
Income from associated
undertakings 15 (5) (35) (3) (59)
Minority interest (5) (1) (8) (1) (14)
Income before
income tax 2,500 1,428 6,426 3,241 10,907
Provision for income
taxes 896 507 2,269 1,148 3,850
Net income 1,604 921 4,157 2,093 7,057
Analysis of compensation
charge included in results:
Research and
development 71 53 209 117 355
Sales and
marketing 67 50 193 108 328
General and
administration 46 38 135 88 229
---------------------------------------------
184 141 537 313 912
Earnings per share
(assuming dilution)
Shares outstanding
('000) 50,640 42,434 47,710 40,604 47,710
Earnings per Share --
pence 3.2 2.2 8.7 5.2 14.8
Earnings per ADS
(assuming dilution)
ADS's outstanding
('000) 16,880 14,145 15,903 13,535 15,903
Earnings per ADS --
cents (1) 16.1 11.0 44.4 26.2 44.4
(1) Translated solely for the convenience of the reader at Sept. 30,
1998 closing rate of $1.6970=(pound)1
ARM Holdings plc
Consolidated Balance Sheet-U.S. GAAP
Sept-30 Dec-31 Sep-30
1998 1997 1998 (1)
Unaudited Audited Unaudited
(pound)'000 (pound)'000 $'000
Assets
Current assets:
Cash and cash equivalents 37,237 7,405 63,191
Accounts receivable 9,439 6,307 16,018
Inventory 223 163 379
Prepaid expenses and other assets 3,058 2,971 5,190
Total current assets 49,957 16,846 84,778
Deferred income taxes 353 259 599
Property and equipment, net 7,594 4,639 12,887
Prepayments and accrued income 16 16 27
Investments 144 201 244
Total assets 58,064 21,961 98,535
Liabilities and shareholders' equity
Accounts payable 1,086 1,091 1,843
Income taxes payable 863 1,130 1,465
Personnel taxes 282 219 479
Accrued liabilities 4,576 3,292 7,765
Deferred revenue 5,106 3,732 8,665
Total liabilities 11,913 9,464 20,217
Minority interest 34 43 58
-----------------------------
11,947 9,507 20,275
Shareholders' equity
Ordinary and preference shares 470 388 798
Additional paid in capital 39,048 4,095 66,264
Accumulated translation adjustments (223) (132) (379)
Retained earnings 8,260 8,103 14,017
Treasury stock, at cost (1,438) 0 (2,440)
Total shareholders' equity 46,117 12,454 78,260
Total liabilities and
shareholders' equity 58,064 21,961 98,535
(1) Translated solely for the convenience of the reader at Sep 30.,
1998 closing rate of $ 1.6970 =(pound)1
-0- This announcement contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " including statements concerning plans, future events or performance and underlying assumptions and other statements which are other than statements of historical fact. The company's actual results for future periods may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. The factors that could cause actual results to differ materially include, without limitation, potential for significant fluctuation Fluctuation A price or interest rate change. in and unpredictability of results, the ability of semiconductor partners to manufacture and market microprocessors based on the ARM(R) architecture; the acceptance of ARM(R) technology by systems companies; the availability of development tools, systems software and operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. ; the rapid change in technology in the industry and ARM's ability to develop new products in a timely manner; management of growth; competition from other architectures; general business and economic conditions; the growth in the semiconductor industry; the company's ability to protect its intellectual property; and its ability to attract and retain employees. The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Statutory accounts of the company in respect of the financial year ended Dec. 31, 1997 have been delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , upon which the company's auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together , have given a report which was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of that Act. |
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