Arc International
ARC licenses intellectual property in the form of vertically integrated solutions, multimedia subsystems, configurable processors, and related technologies to semiconductor and OEM companies worldwide.
ARC products enable customers to create differentiated consumer electronic products that deliver an enhanced multimedia experience on a variety of products such as DTVs, portable media players, PCs, laptops, and music and smart phones.
ARC International says strong royalty income offset by license delays
ARC International PLC said while it saw continued strong growth in royalty revenues in 2008, the increases were offset by lower than expected licensing revenues in the closing weeks of the year, resulting from the rescheduling by two customers of licensing decisions in response to continued deterioration of industry confidence.
In a trading update, the configurable processor and multimedia technology maker said it now expects revenues from the full-year 2008 to be in the range of £15.7 to £16.2 million.
ARC's cash position remains strong at £12.6 million.
In order to address the dramatic decline in the Sterling exchange rate, it is taking actions to further reduce costs and plans full-year 2009 savings of at least £2.5 million, greater than the £2.0 million it flagged in its September 2008 reorganisation plan.
For 2009, management continues to remain cautious due to continuing uncertainty in the economic environment and fundamental industry changes, it added.
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