ARM Holdings profits up from licensing on strong demand for mobile technology

Lynsey Barber
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ARM licensing agreements increased (Source: Getty)

Profits at British chip-maker ARM Holdings were up nine per cent to £94m for the second quarter, benefitting from the ever increasing demand for smartphones and mobile devices.

Revenue was also up nine per cent on the same period last year to £187m, a figure level with the previous quarter.

The firm was bolstered by a 42 per cent rise in revenue from the licensing of its technology.

It added an additional 41 agreements for its processor technology in the second quarter, bringing the total to 1,100, and licensing accounted for 47 per cent of the group’s revenue.

ARM chief executive Simon Seagars said the performance of licensing boded well for the company's royalty revenue in the future, which this quarter slowed, with growth of just two per cent.

"Our continued strong licensing performance reflects the intent of existing and new customers to base more of their future products on ARM technology. The 41 processor licences signed in Q2 were driven by demand for ARM technology in smart mobile devices, consumer electronics and embedded computing chips for the Internet of Things, and include further licences for ARMv8-A and Mali processor technology.”

The Cambridge-based technology company said shipments of its processors jumped 11 per cent year-on-year to 2.7bn with strong growth in enterprise networking and microcontrollers.

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