Arkle Res Regulatory News (ARK)

9 Jan 2008 07:01

Arc International PLC09 January 2008 Media Contact: Investor Contact: Lee Garvin Flanagin Juliet Clarke ARC International Financial Dynamics +1 408 437 3433 +44 20 7831 3113 lee.flanagin@arc.com juliet.clarke@fd.com ARC International plc Year Ended December 31, 2007 Trading Update Revenue Increased Over 20% Year-on-Year Record Backlog and Sales Pipeline Royalty Revenue Up Approximately 50% ST. ALBANS, England, January 9, 2008 - ARC International (LSE: ARK) todayannounced that its unaudited revenue for the financial year ended December 31,2007 is expected to be approximately $30 million (£15 million), an increase ofover 20 percent on a constant dollar basis compared to financial year 2006.This takes into consideration the ongoing weakness of the dollar compared tosterling. In addition, both backlog and sales pipeline at January 1, 2008 aresignificantly ahead of their positions at January 1, 2007. Licensing andmaintenance revenues have increased, and royalty income for the year as a wholeis expected to be approximately 50 percent greater than 2006. These significant improvements were achieved despite general economic concernsamong certain North American customers. During the second half of 2007 this ledto delays affecting the closing of approximately $2.0 million (£1 million) ofnew licensing contracts. These are expected to close early in 2008. Althoughthe impact of these contract delays has been substantially mitigated by goodcost management, the EBITDA loss for the year as a whole will be slightly higherthan management's previous expectations due to incremental operating expenses ofapproximately $3.7 million (£1.9 million) as a result of the three acquisitionscompleted during 2007. Carl Schlachte, president and CEO, commented, "2007 was a year of solidachievements for ARC International with significant progress on the two keyplanks of the company's strategy. Firstly, overall revenues grew more than 20percent, which included increased licensing, maintenance, royalty revenues. Inparticular, royalties were up close to 50 percent over 2006 and now representapproximately one-third of total revenues. In 2007, the company announced thetwo largest customer agreements in its history, which added to ARC's backlog andenables the company to begin 2008 with its strongest ever backlog and salespipeline. "Secondly, ARC substantially enhanced its product portfolio and technology baseby completing and successfully integrating three strategic acquisitions, andadding world-class technological expertise to the management team. Theseprovide further impetus to ARC's growth potential, and the achievements in 2007strengthen ARC's competitive position and underpin the company's plans forcontinued growth." Announcement of Preliminary Results for Financial Year 2007On Wednesday February 20, 2008 ARC International will announce results for thetwelve months ended December 31, 2007. A morning meeting will be held in Londonfor analysts. Interested parties should contact Financial Dynamics or ARCInternational for more information. # # # About ARC International plc ARC International is the world leader in configurable multimedia subsystems andCPU/DSP processors. Used by over 140 companies worldwide, ARC's configurablesolutions enable the creation of highly differentiated system-on-chips (SoCs)that ship in hundreds of millions of devices annually. ARC's patented subsystemsand cores are smaller, consume less power, and are less expensive to manufacturethan competing products. ARC International maintains a worldwide presence with corporate and research anddevelopment offices in California and St. Albans, UK. For more information visitwww.ARC.com. ARC International is listed on the London Stock Exchange as ARCInternational plc (LSE: ARK). ARC and the ARC logo are trademarks or registered trademarks of ARCInternational. All other brands or product names contained herein are theproperty of their respective owners. This press release may contain certain"forward-looking statements" that involve risks and uncertainties, including thedevelopment, implementation, and release of features described herein. These areat the sole discretion of ARC International. Licenses from 3rd parties forcertain software and essential patents may be required depending on licensee'suse/implementation. For other factors that could cause actual results to differ,visit the company's Website as well as the listing particulars filed with theUnited Kingdom Listing Authority and the Registrar of Companies in England andWales. This information is provided by RNS The company news service from the London Stock Exchange