Business
Trading Update
Trading Update.
About this update from Arkle Resources Plc
[{"type":"text","content":"\n RNS Number : 7341U Arc International PLC 30 June 2009 \n \n30 June 2009\n\nARC International plc\n\n(\"ARC\" or the \"Company\")\n\n\nTrading Update and Outcome of Strategic Review\n\nARC International, (LSE: ARK), a leading provider of IP to OEM and semiconductor companies globally, provides an update on the completion of a strategic review of its operations, changes to its executive team and an update on trading.\n\nHighlights \n\n\n\nRevenue for H1 2009 is in line with expectations\n\n\nGlobal restructuring of operations to be implemented to put ARC on a firmer strategic footing\n\n\nRestructuring actions to deliver significant cost savings estimated at £6m on an annualised basis and recognisable from H2 2009, achieved at a cash cost of £2.8m \n\n\nPositive cash flow and EBITDA from core business (excluding one-off rationalisation costs and discontinued operations) now expected in H2 2009 \n\n\nChange of Chief Financial Officer\n\n\nNew processor range to be announced in November 2009\n\n\n\nTrading and Results of Strategic Review\n\nThe Board is pleased to announce that current trading remains in line with previously announced expectations, with revenues within the target range of £6.0m to £8.0m ($9.0m to $12.0m) for the six months ended 30 June 2009. Whilst general trading conditions remain challenging, with lengthy sales cycles, we continue to sign deals and generate royalty revenues.\n\nIn addition, following the recent appointment of Dr Geoff Bristow as Chief Executive Officer on 5 May, a strategic review of all operations has been completed. As a result of this review, which has encompassed all businesses within the group, the following changes are to be implemented with immediate effect:\n\n\n\nFocused development groups established\n\n\nIn order to enhance the Company's focus on marketable technology developments, ARC will form an Advanced Software Group ('ASG') in St Petersburg (based on our wholly-owned subsidiary, Alarity Inc) to focus on new areas of IP as well as continuing its leading-edge Codec development. In addition, an Advanced Technology Group ('ATG') will be established in our existing San Jose operation in order to focus on hardware development and systems IP.\n\n\n\nFurther operational efficiencies identified\n\n\nAs previously announced, the Company cont...