Product category: Intellectual Property Cores
News Release from: ARC International
Edited by the Electronicstalk Editorial Team on 22 February 2002
Turnover up and losses reduced for ARC
ARC International has revealed its preliminary results for the fourth quarter and the year ended 31st December 2001
Total turnover in the fourth quarter was GBP 2.3 million compared with GBP 2.0 million in the third quarter of 2001. Licence income was GBP 1.8 million (Q3 2001: GBP 1.3 million), maintenance and service income was GBP 0.4 million (Q3: GBP 0.5 million) and royalties were GBP 0.1 million (Q3: GBP 0.2 million).
This article was originally published on Electronicstalk on 22 February 2002 at 8.00am (UK)
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The number of end designs containing the ARCtangent processor being shipped by our customers was unchanged during the quarter at 11.
Cost of sales was GBP 0.4 million (Q3: GBP 0.4 million) and gross margin increased to 83% (Q3: 79%).
Total operating expenses including cost of sales but excluding exceptional costs, depreciation and amortisation of goodwill were 9% lower than in the previous quarter at GBP 7.9 million (Q3: GBP 8.6 million).
This represents a 21% reduction in the cost base compared with the second quarter of 2001.
Research and development costs were 5% higher at GBP 3.3 million (Q3: GBP 3.2 million) due to the phasing of software design services costs.
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Sales and marketing costs were 14% lower at GBP 2.9 million (Q3: GBP 3.4 million) and general and administration costs were 26% lower at GBP 1.3 million (Q3: GBP 1.7 million).
The increased turnover and lower costs resulted in the net loss before exceptional costs being 8% lower at GBP 6.2 million (Q3: GBP 6.8 million).
The net loss including exceptional costs was GBP 4.9 million (Q3: 11.2 million).
The net cash outflow from operations increased to GBP 7.1 million (Q3: an outflow of GBP 6.0 million) due to the settlement of the lease on the San Jose property.
The underlying net cash outflow from operations was GBP 4.8 million.
Seasonal timing issues resulted in lower capital expenditure of GBP 0.4 million (Q3: GBP 1.2 million).
The movement in net funds during the quarter was an outflow of GBP 5.8 million (Q3: GBP 5.4 million).
Net assets at 31st December 2001 were GBP 136.1 million (30th September 2001:GBP 140.7 million), including net cash of GBP 120.8 million (30th September 2001: GBP 126.7 million).
For the year as a whole, total turnover increased by 8% to GBP 11.4 million (2000: GBP 10.6 million).
Licence income was GBP 8.9 million (2000: GBP 8.2 million), maintenance and service income was GBP 2.0 million (2000: GBP 1.9 million) and royalties were GBP 0.5 million (2000: GBP 0.5 million).
Cost of sales was GBP 1.7 million (2000: GBP 0.9 million).
Gross margin was lower at 85% (2000: 92%) due to the increase in costs of our customer support operation in the first half of the year not being matched by a commensurate increase in turnover.
Total operating expenses including cost of sales but excluding exceptional costs, amortisation of goodwill and depreciation increased to GBP 35.8 million (2000: GBP 24.7 million) due to the acquisitions of Precise Software Technologies and VAutomation in March 2000 and the development of the resources of the business in the first half of the year to drive future growth.
Action was taken in the second half of the year to reduce the operating cost base.
Total employees in the business at 31st December 2001 was 223 compared with 279 at 31st December 2000.
Research and development costs were GBP 13.3 million (2000: GBP 9.3 million), sales and marketing costs were GBP 14.3 million (2000: GBP 10.2 million) and general and administration costs were GBP 6.6 million (2000: GBP 4.4 million).
The net loss before exceptional costs was GBP 24.4 million (2000: GBP 15.3 million).
The net loss including exceptional costs was GBP 29.9 million (2000: GBP 16.4 million).
The net cash outflow from operations was GBP 27.3 million (2000: GBP 14.3 million).
Capital expenditure was GBP 5.3 million (2000: GBP 3.8 million).
The movement in net funds during the year was a GBP 25.0 million outflow compared with an inflow of GBP 140.0 million in 2000 resulting from the proceeds of the IPO and a private placement.
Net assets at 31st December 2001 were GBP 136.1 million (31st December 2000: GBP 164.6 million), including net cash of GBP 120.8 million (2000: GBP 145.8 million).
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