4th Feb 2014 08:41
LONDON (Alliance News) - ARM Holdings PLC Tuesday said it expects dollar revenues for the full year 2014 to be in line with expectations, assuming the outlook for the semiconductor industry improves as generally anticipated, as it reported a decline in pretax profit for 2013 due to exceptional costs.
ARM saw exceptional impairment charge of GBP59.5 million for the year ended December 31, 2013, as well as indemnification, settlement and licence costs of GBP41.8 million. Additionally, the company acquired Geomerics Ltd for GBP13.4 million and Sensinode Oy for USD11.7 million in the period.
As a result of these costs, according to international financial reporting standards, ARM saw pretax profit for the year decline to GBP162.6 million from GBP221.0 million in the previous year.
Excluding the exceptional costs, pretax profit for the year was GBP364.0 million, up from GBP276.5 million in the previous year.
The company posted revenue in its fourth quarter of GBP189.1 million, up from GBP164.2 million in the previous year. That brought ARM's full year revenue to GBP714.6 million, up from GBP576.9 million in the previous year.
ARM said its processor royalty revenue grew faster than the overall semiconductor industry. However it said this outperformance was hampered by slower sales of chips for high-end smartphones such as the Apple iPhone, in the second half of the year.
Royalty revenues for the full year rose to USD558.9 million from USD473.9 million, an 18% increase. In the fourth quarter royalty revenues rose to USD146.4 million from USD136.8 million, a 7.0% increase.
Despite this slower growth in high-end smartphones, ARM said it expects its full year 2014 processor royalty revenues to grow at a similar rate to that reported over the last three years.
ARM announced a final dividend of 3.6 pence, bringing the total dividend for the year to 5.7 pence, up 27% from 4.5 pence in the previous year. The company expressed its intention for a limited share buyback programme to maintain a flat share count, it said.
ARM expressed confidence for its future, saying it had made good progress in the fourth quarter as its latest technology was chosen by companies in its target markets, and it signed further licenses for its ARMv8-A processors, Mali graphics processors and physical intellectual property technology.
Shares in ARM were trading down 4.0% at 891.00 pence Tuesday morning, making them the biggest FTSE 100 faller.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ARM.L