Progress on key growth drivers in Q3
Growth in adoption of ARM® processor technology
- 29 processor licenses signed for a broad range of applications, including deeply embedded products such as chips for hearing aids and automotive braking systems, and consumer electronics such as smartphones, TVs and tablets
- Momentum in high-end computing and networking applications continued, with the signing of one ARMv8 architecture license, one ARMv8 processor license and one Cortex-A15 processor license
Growth in shipments of chips based on ARM processor technology
- 2.2 billion chips shipped, split equally between mobile and non-mobile segments
- Processor royalty revenue grew 27% year-on-year, driven by strong growth in Cortex-A and Mali-based chips
Growth in outsourcing of new technology
- 5 Mali™ graphics processor licenses signed, including three with new customers for Mali technology
- 4 physical IP Processor Optimisation Packs licensed, enhancing ARM's royalty opportunity per chip
Warren East, Chief Executive Officer, said:
"ARM has delivered another quarter of strong revenue and earnings growth. As we move into an ever more connected world of mobile computing, cloud-based networks and the Internet-of-Things, ARM is seeing increased demand for its high performance and low power technology. This demand is helping to drive ARM's licensing revenues and this quarter we saw market leaders license ARM's advanced processor technology for next generation super smartphones, tablets, and mobile and embedded computing applications.
ARM's royalty revenues outpaced the industry with continued market share gains in key end markets including digital TVs and microcontrollers. The increasing penetration of Cortex-A class technology and adoption of Mali graphics in consumer electronics also helped increase ARM's overall royalty revenue per chip. This strong growth in licensing and royalty revenue allows ARM to keep investing for the future and deliver increased profits and cash generation."
Outlook
ARM enters the final quarter of 2012 with record order backlog and a robust opportunity pipeline. This combination points to another strong quarter for licensing revenue in Q4. ARM's Q4 royalty revenue is generated from third quarter chip shipments. Data from our customers suggests a moderate sequential increase in ARM's royalty revenue in Q4. We therefore expect group dollar revenues for the fourth quarter to be in-line with current market expectations.
