ARM HOLDINGS PLC REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2010
Progress on key growth drivers in Q4
Growth in adoption of ARM processor technology
o 35 processor licenses signed for a range of applications including smartphones, mobile computers, servers and smartcards
o Microsoft announced that future generations of Windows operating system will support ARM-based chips
o NVIDIA licensed both Cortex-A15 and the next-generation ARM architecture for computing markets
o Strong licensing drives a 35% sequential increase in order backlog
Growth in mobile applications
o 1.1 billion ARM-processor based chips shipped into mobile devices
Growth beyond mobile into consumer electronics and embedded products
o 0.7 billion ARM-processor based chips shipped into everything from smart-meters to solid-state drives
Growth in outsourcing of new technology
o Physical IP: Freescale became ARM's first subscription licensee for physical IP at an advanced technology node; and a foundry licensed a royalty-bearing platform of physical IP.
o Graphics: 8 licenses for Mali, ARM's advanced graphics processor
Warren East, Chief Executive Officer, said:
"ARM continues to sign licenses with influential market leaders in an increasingly digital world, and as the industry chooses ARM technology in a broadening range of electronic products, it further drives our long-term royalty opportunity. The growth in licensing and royalty revenues, throughout 2010, has combined to deliver our highest ever annual revenues, profits and cash generation.
2011 will bring exciting opportunities and challenges as ARM enters competitive new markets and we are well positioned to succeed with leading technology, an innovative business model and a thriving ecosystem of partners."
Outlook
It is generally expected that, after a strong recovery in 2010, the semiconductor industry will see more typical growth levels in 2011. With ARM well positioned to continue to gain share, we expect group dollar revenues for the full-year to be at least in line with market expectations.