ARC sees boost from Asian licensees -

ARC sees boost from Asian licensees

LONDON — ARC International plc boosted royalties by 32 percent and bookings by 31 percent in the first half of its financial year to the end of June compared with the same period last year.

Overall revenue at ARC (Elstree, England) was up 10 percent to £6.0 million, cash generated from operating activities was £0.5 million with in all the net loss was £1.7 million, up slightly from £1.4million.

The company was successful in closing 20 processor contracts bringing the total number of licensees to 127. Launched in February, ARC Video Subsystem has already been licensed by 6 companies and the ARC Sound Advanced Subsystem, launched in March, has already licensed by 2 companies including Oki Electric which is to use it for in-car audio applications.

“For the second half of 2006, ARC will focus on winning more tier 1 licensees while making strategic investments to boost our ongoing sales and marketing efforts in key regions,” said Carl Schlachte, president and chief executive officer.

Victor Young, chief financial officer, added, “Costs were slightly ahead of plan, due to higher sales commissions related to the increase in revenues in Asia, increase in professional fees, and other investments made in growing ARC's subsystem offerings. Bookings in Asia increased by approximately four times compared to the same period a year ago.”

Revenue from companies in Asia represented close to 30 percent of revenue for the first half, a record high and up from less than five percent in the same period of 2005.

The ARC 600 and 700 core families and ARC Media Subsystems contributed approximately 95 percent of total processor license revenue, which completes the shift in revenue away from lower value legacy products that the management team set out to achieve starting in 2004.

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