Product category:
Intellectual Property Cores
News Release from: ARC International
Edited by the Electronicstalk Editorial
Team on 28 July 2005
Optimism abounds at ARC
ARC International has announced its unaudited financial results for the six months ended 30th June 2005.
ARC International has announced its unaudited financial results for the six months ended 30th June 2005 Revenue for the underlying business was GBP 5.4 million, up 10% year over year (1H 2004 GBP 4.9 million) and down 13% including revenue from the peripherals business that was sold (1H 2004 GBP 6.2 million)
This article was originally published on Electronicstalk on 20 Feb 2007 at 8.00am (UK)
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Licence and engineering income for the underlying business was GBP 3.4 million, up 25% year over year (1H 2004 GBP 2.7 million).
Operating costs before share based award expense, goodwill impairment, amortisation and depreciation were GBP 7.6 million, reduced by 25% over 1H 2004 (1H 2004 GBP 10.2 million).
Net operating expenses were GBP 8.7 million, reduced by 18% over 1H 2004 (1H 2004 GBP 10.7 million).
Net loss for the period was GBP 1.4 million, improved 52% over 1H 2004 (1H 2004 GBP 2.9 million).
Operating cash outflow was GBP 2.6 million, reduced 48% year over year (1H 2004 GBP 5.1 million); year end cash and short-term investments were GBP 33.0 million (2H 2004 GBP 33.5 million).
Commenting on operations for the first six months, Carl Schlachte, President and CEO, said: "In the first half of 2005, ARC passed the 100 customer milestone with 17 new processor contracts, a 55% year-on-year gain from the 11 licences signed in the first half 2004".
"Many of these companies are driving high-growth embedded markets, including smart cards and biometrics applications".
"Seven of these customers were new licensees".
"Management continues to be confident in the strategy and optimistic about the future of the company".
"Although the financial results were below our expectations, achievements over the past six months, such as our growing patent portfolio and the launch of our Early Adopter Programme for ARC's multimedia subsystem, underscore ARC's increasing strength in the embedded IP market".
Commenting on the financial results, Monica Johnson, CFO, added: "Strong demand for our SoC products grew licence and engineering income by 25% compared with the same period and underlying business in 2004".
"Despite a slow first quarter, business strengthened considerably in the last few months, and we remain optimistic for the second half of 2005".
"Revenue growth, cash usage and expenses for the second half of 2005 remain inline with projected levels".
"Our newer products continue to be broadly adopted and are helping increase overall average selling prices".
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