ARM Holdings profits rise as US licensing takes off

Guy Bentley
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Chip designer ARM Holdings has reported a nine per cent rise in profit before tax to £97m for the first quarter ended 31 March.

The British company also enjoyed a 10 per cent rise in revenue to £187m. However, this was slightly below analyst expectations of £189m.

ARM has seen a rapid expansion in the use of its technology, with 26 processor licenses signed across multiple end markets.

Simon Segars, chief executive officer, commented:

Our customers are signing licences with a view to designing ARM technology into an increasingly wide range of markets from servers and supercomputers to embedded sensors and enterprise networking applications and thereby underpinning ARM's future royalty opportunity.

The company has benefited from advanced technology that enables a higher royalty percentage per chip in both consumer electronics and enterprise infrastructure.

The number of ARM based chips shipped during the quarter rose by 11 per cent year-on-year to 2.9bn. Looking ahead the company thinks recent indications from the semiconductor industry as well as its customers, suggest it will prosper from an improving environment over the second half.

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