ARMHY Arm Holdings, Plc ADS (MM)

ARM HOLDINGS PLC REPORTS RESULTS FOR THE SECOND QUARTER AND HALF YEAR
ENDED 30 JUNE 2010

A presentation of the results will be webcast today at 09:30 BST at
www.arm.com/ir

CAMBRIDGE, UK, 27 July 2010-ARM Holdings plc announces its unaudited
financial results for the second quarter and half year ended 30 June
2010, demonstrating continuing progress in executing its strategy with
multiple design wins taking ARM further into new markets.

Q2 2010 - Financial Summary      Normalised*                  IFRS
                                   Q2     Q2        %       Q2     Q2
                                 2010   2009   Change     2010   2009
Revenue ($m) +                  150.3  105.5      42%    150.3  105.5
Revenue (GBPm) +                100.0   64.8      54%    100.0   64.8
Operating margin                42.7%  24.7%             28.9%   9.4%
Profit before tax (GBPm)         43.5   16.3     167%     29.6    6.4
Earnings per share (pence)       2.34   0.95     146%     1.62   0.50
Net cash generation**            30.4   11.9
Effective revenue fx rate ($/    1.50   1.63
GBP)
+ Q2 2010 revenues and PBT include catch-up PD royalty revenues of
$9.0m (GBP6.2m)

Progress against strategy in Q2
. Growth in mobile applications - ARM opportunity increases as
  smartphone growth continues and ARM technology-based mobile computers
  begin to come to market
  o Average of 2.6 ARM®-processor based chips per mobile phone
  o 4 processor licenses signed for mobile phone and computing
    applications
  o Major semiconductor company becomes the third lead-licensee for
the"Eagle" Cortex-A™class processor
. Growth beyond mobile - Increased share in target markets such
  as consumer electronics and embedded products
  o Strong year-on-year growth for shipments of ARM-based chips into
    digital TVs, disk drives and microcontrollers
  o 13 processor licenses signed for a broad range of applications
    including intelligent sensors, networking, smart energy meters and
    solid state drives
  o Leading microcontroller company, Freescale, announced their first
    major family of ARM-based microcontrollers
. Growth in new technology outsourcing
  o 3 licenses for royalty-bearing platforms of physical IP at both
    advanced nodes and mature nodes
  o TSMC licenses physical IP for 28nm and 20nm early in Q3
  o 3 companies further their commitment to Mali™, ARM's graphics
    processor
. Microsoft signed a multi-year architecture license to be at the
  forefront of working with ARM technology, across a broad range of
  businesses, addressing multiple application areas
. Interim dividend increased by 20%

Warren East, Chief Executive Officer, said:"We are pleased to report strong
underlying revenue and profit performance in the first half, in improved
trading conditions compared with one year ago. Our strategy remains on
track for growth in mobile, non-mobile and new technology outsourcing.
Major semiconductor vendors
and consumer electronics companies are making long-term commitments to
using ARM technology in their future products. Freescale, Microsoft and
TSMC all recently announced adoption of ARM's latest technology which
will further increase ARM's market penetration, and royalty potential,
in a broadening range of end applications. ARM continued to gain share
in the quarter with shipments of ARM-based chips growing faster than
the industry in all target markets."

Outlook
We enter the second half of the year with record order backlog, a
robust opportunity pipeline and strong momentum as ARM continues to
increase penetration across its target markets. Although the impact of
the broader macroeconomic environment on end consumer demand later in
the year remains uncertain, we expect group dollar revenues (excluding
catch-up PD royalty revenues of $9 million reported in Q2) for the
full-year 2010 to be in line with current market expectations.


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END

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