Arc sees drop in first half revenues

20th May 2009 10:00

Chip designer Arc International expects to report a year-on-year drop in first half revenues as market conditions remain challenging.The group said it is expecting to generate revenues for the first half of between £6m to £8m compared with £9.3m in the same period last year. Arc added that its licensing pipeline is healthy and its balance sheet remains strong with cash balances of £9.8m at 30 April."The financial outlook for the first half is very disappointing, demonstrating the need for action. The board and I are committed to achieving profitability and positive cash flow in the near term and we remain convinced of the long-term value within Arc and its market leading product set," said newly-appointed chief executive Geoff Bristow."These are tough times but I am confident that we can emerge as a stronger, more efficient business in the future. I look forward to updating the market with the action plan at the time of our interim results," he added.