(Telecompaper) ARM Holdings reported a slowdown in revenue growth in the second quarter, due to seasonal trends and inventory management in the industry. Revenues were up 17 percent year-on-year to USD 309.6 million, while its adjusted operating margin improved to 48.9 percent from 48.6 percent a year ago. Licensing led the growth in revenue, up 42 percent to USD 146.1 million, after the company signed 41 new licences in the quarter. Royalty revenue was unchanged at USD 135.3 million. On a statutory basis, revenues rose 9 percent to GBP 187.1 million, and the margin increased to 34.9 percent from 7.4 percent a year earlier, after the company took a one-time charge for certain IP in the year-earlier period. Pretax profit jumped to GBP 68.0 million from 15.0 million, and EPS increased to 3.91 pence from 0.75. The results included a restructuring charge of GBP 8.4 million after a "review of the skills and capabilities across the business" led to the loss of 130 people from the company during the quarter. ARM's order backlog was down around 10 percent compared to the first quarter, but the company said it expects the licensing opportunities, especially for its next-generation processors, to pay off in a higher backlog in the second half of the year. Improving semiconductor market conditions should also lead to increased royalty revenue on the second half. The company will increase its interim dividend by 20 percent to 2.52 pence per share.