ARM Holdings plc designs microprocessors, physical IP and related technology and software, and sells development tools. The company licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM’s technology to systems companies for incorporation into a variety of end products. The company also licenses and sells development tools directly to systems companies and provides support services to its licensees, systems companies and other systems designers. Its principal geographic markets are Europe, the U.S. and the Asia Pacific. Products and Services The company’s comprehensive product offering includes the following: Microprocessor Cores: microprocessor cores, including specific functions such as video and graphics IP and on-chip fabric IP; Embedded software; Physical IP; Development tools; and Support and maintenance services. Processor Cores The company focuses on producing low-cost microprocessor cores that offer the higher performance. ARM microprocessors are designed to allow high performance at a low total system cost. Two features that help achieve this are small die area (chip size), and high code density. Architectural Extensions The company’s strategy is to develop products incorporating additional features and instruction set enhancements appropriate to application needs, while maintaining a common, general purpose instruction set which provides code compatibility. Architectural extensions are introduced in subsequent versions of the ARM architecture, building on the previous architectures, thus adding backwards code compatibility of new processor cores with older generations. The ARM Microprocessor Families ARM architecture processors offer a range of performance options in the ARM7 family, ARM9 family, ARM11 family, ARM Cortex family and ARM SecurCore family. The ARM architecture gives systems designers a choice of processor cores at different performance/price points, yet all ARM microprocessors use substantially the same instruction set and are capable of running the same software. ARM7 family: The ARM7 family comprises low power, general purpose 32-bit microprocessor cores particularly suitable where strict die area and power constraints must be satisfied while maintaining reasonably high performance, as in portable telecommunications. The ARM7 offers 32-bit architecture capable of operating from 8/16-bit memory on an 8/16-bit bus for low system cost. ARM9 family: The ARM9 family comprises a range of microprocessors in the 150-250MHz range. Each processor has been designed for a specific application or function, such as an application processor for a feature phone or running a WiFi protocol stack. ARM11 family: The ARM11 family comprises a range of microprocessors in the 300-600MHz range. Each processor has been designed for a specific application or function, such as an application processor for a smartphone or controlling the engine management system in a car. ARM Cortex family: This is the company’s newest family of processor cores. The family is split into three series: A Series targeting applications processors running complex operating systems; R Series targeting real time deeply embedded markets and running Real Time Operating Systems (RTOSs); and M Series addressing the needs of the low cost microcontroller markets. Graphics and Video IP The company develops graphics accelerator IP and software for semiconductor SoC vendors that deliver multimedia images. The company also develops video processor and imaging technology IP, which combined with its graphics IP provides customers with an integrated multimedia platform. Physical IP The company is a provider of physical IP components for the design and manufacture of integrated circuits, including SoCs. ARM Artisan physical IP products comprise embedded memory, standard cell and input/output components which are designed to provide the customers’ desired combination of performan