Progress on key growth drivers in Q1

·       Growth in adoption of ARM^® processor technology

o 22 processor licenses signed across all target end markets

o 8 Cortex™-A licenses signed, including licenses for Atlas and Cortex-A15 for use in servers

o 10 Cortex-M class licenses, including a further license for ARM's smallest and lowest power Cortex-M0+ processor for use in next generation Internet of Things devices

·       Growth in shipments of chips based on ARM processor technology

o 1.1 billion chips shipped into mobile phones and mobile computers, similar to a year ago

o 0.8 billion chips shipped into consumer and embedded digital devices, up 15% year-on-year

·       Growth in outsourcing of new technology

o Physical IP: 3 Processor Optimization Pack licenses signed for Cortex-A family processors, further increasing the royalty opportunity from high-value chips in mobile computers, smartphones and automotive infotainment

o Graphics: 2 licenses signed for Mali™, taking advanced 3D graphics into low-cost smartphones

Warren East, Chief Executive Officer, said:

"As many aspects of our lives become digital, we continue to see an increase in the demand for ARM's smarter and lower power technology, which is driving both our licensing and royalty revenues.

In the first quarter of 2012 we saw continuing demand for technology licenses driven by a remarkable variety of end markets from highly efficient servers to energy-sipping sensors.  ARM's royalty revenues continued to outperform the overall semiconductor industry as our customers launch their products into new markets and gain market share within existing markets.

With more customers choosing to deploy ARM technology in their products, this has been another quarter that underpins the long-term growth opportunity of the business.  This growth enables us to invest in future innovative technology as well as delivering increases in profit and cash flow."

Outlook

Whilst Q1 industry shipments declined sequentially, most analysts expect the industry to recover in the second half.  In that context, ARM expects that group dollar revenues for the full-year 2012 will be in line with current market expectations.