Bullish ARM beats forecasts as quarter two profits rise 30pc

 
Suzie Neuwirth
BRITISH chip designer ARM Holdings yesterday said it expected continued strong demand for its technology after higher-than-expected licensing of its processors in the second quarter.

The FTSE 100-listed firm reported a 30 per cent rise in pre-tax profit to £86.6m yesterday, beating forecasts.

ARM has outpaced the wider semiconductor market for the past five years or so, helped by the use of its processors in smartphones like Apple's iPhone and tablet computers. It licenses its designs and receives a royalty on every chip shipped by its partners.

Chief executive Simon Segars, who took over from Warren East on 1 July, said the firm was continuing to see strong demand for its latest technology for both application processors – the brains in mobile devices – and for graphics technology.

Processor design licensing revenue rose 34 per cent year-on-year to £56.9m, comfortably beating market expectations. Analysts at Liberum expected 18.7 per cent growth.

Shares closed down just over one per cent, at 888.5p.