Interim Management Statement
Arc International PLC
23 April 2008
Media Contact: Investor Contact:
Lee Garvin Flanagin Juliet Clarke/Matt Dixon
ARC International Financial Dynamics
+1 408 437 3433 +1 44 20 7831 3113
ARC International plc
("ARC" or the "Company")
Interim Management Statement
SAN JOSE, Calif., and ST. ALBANS, England, April 23, 2008 - ARC International
(LSE: ARK), a leading provider of consumer intellectual property (IP) to OEM and
semiconductor companies, today issued its first Interim Management Statement as
required by the UK Listing Authority's Disclosure and Transparency Rules,
covering the period January 1, 2008 to the date of this announcement.
Current Trading and Financial Performance
ARC has signed a number of new licensing agreements since the beginning of the
year including contracts delayed from the fourth quarter of 2007.
Backlog and cash position remain strong and ARC is achieving cost savings as a
result of recent acquisitions. Conditions in North America continue to reflect
weakness in the U.S. economy and some prospective customers are experiencing
delays and cancellations of planned projects. Despite the market softness, new
licensing opportunities continue to be identified. Management remains confident
in the company's trading opportunities and expects ARC's financial performance
for the year ending December 31, 2008 to be in line with expectations.
Acquisition
On February 12, 2008, ARC acquired Sonic Focus, Inc. and its audio enhancement
technology designed for a wide range of electronic products. For financial year
2007, Sonic Focus operations were breakeven with approximately £600,000 in
revenue. The acquisition is not expected to negatively impact ARC's 2008
operating results. Sonic Focus has an established customer base of "Tier 1"
OEMs globally and is gaining significant traction in the audio post-processing
market. We are making good progress on our integration plans.
Outlook
ARC has a solid foundation upon which to deliver continued growth. Management's
confidence in the company's trading prospects remains unchanged since the
preliminary results statement in February.
About ARC International plc
ARC International is a world leading provider of consumer IP to OEM and
semiconductor companies globally. ARC's award-winning, vertically integrated
audio and video solutions enable high quality multimedia content to be captured,
shared, and played on a wide range of electronics devices. ARC's 140+ customers
collectively ship hundreds of millions of ARC-BasedTM chips annually in products
such as Mobile TVs, Portable Media Players, WiFi-/WiMAX-enabled computers, flash
storage, digital cameras, network appliances, and medical and government
systems.
ARC International maintains a worldwide presence with corporate and research and
development offices in San Jose and Lake Tahoe, Calif., St. Albans, England, and
St. Petersburg, Russia. For more information visit www.ARC.com. ARC
International is listed on the London Stock Exchange as ARC International plc
(LSE: ARK).
ARC, ARC-Based, and Sonic Focus are trademarks or registered trademarks of ARC
International. All other brands or product names contained herein are the
property of their respective owners. This press release may contain certain
"forward-looking statements" that involve risks and uncertainties, including the
development, implementation, and release of features described herein. These are
at the sole discretion of ARC International. Licenses from 3rd parties for
certain software and essential patents may be required depending on licensee's
use/implementation. For other factors that could cause actual results to differ,
visit the company's Website as well as the listing particulars filed with the
United Kingdom Listing Authority and the Registrar of Companies in England and
Wales.
This information is provided by RNS
The company news service from the London Stock Exchange