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Home > News > Industry News > Arm failing

Arm failing

  • Author:Ella Cai
  • Release on:2018-08-13
Arm’s Q2 EBIT  fell 99% y-o-y from £82 million in Q2 2017 to £1 million in Q2 2018.

Revenue was down from £329 million in Q2 2017 and from £330 million in Q1 2018 to £281 million in Q2 2018.

Licensing revenue fell 43% y-o-y from £111 million to £64 million. Royalty revenues and software/services revenues remained broadly flat.

Y-o-y the number of licences signed fell from 30 in Q2 2017 to 12 in Q2 2018.

“Licensing can fluctuate from quarter to quarter,” says Arm, “lower revenues are primarily due to contract delays as Arm China was established.”

Arm China now is owned 51% by Chinese investors. Arm says this sale resulted in a ‘net gain’ to Arm owners Softbank  of £1.1 billion. Arm China accounts for 20% of Arm’s revenues.

Q-o-q, employee numbers dropped from 5886 in Q1 to 5707 in Q2, despite ‘legally binding’ guarantees given at the time of the takeover by Softbank, in July 2016, that it would double employee numbers within five years while retaining the same 76.7% ratio of technical to non- technical staff.

Arm now has 4697 technical staff and 1010 non-technical staff.