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ARM announces bumper profits after one billion chips are shipped

Toys with Intel
Tue Jul 26 2011, 18:04

CHIP DESIGNER ARM has produced bumper revenue and profit for its second quarter of 2011 and revealed that it has sold 29 additional ARM licenses.

ARM, which licenses its architecture to firms such as Broadcom, Qualcomm, Samsung and Texas Instruments, announced that it rang up £117.8m in sales for the second quarter, up 18 per cent from the same period last year. That resulted in a profit of £54.2m, an increase of 25 per cent.

ARM also announced that it has signed 29 licensing agreements, specifically nine for the Cortex A-series, two of which are for its Cortex A15 designs for use in server infrastructure and mobile computing applications, while 12 licenses are for its Cortex M controller chips typically found in storage applications.

Financial figures fail to tell the complete story of ARM's second quarter. During the quarter, 1.1 billion ARM chips were shipped in mobile phones and tablets and a further 800 million ARM chips were shipped in consumer electronics. Although ARM itself doesn't fab these chips, these figures are truly staggering and show just how big the embedded market is.

ARM expects reduced growth in the next quarter, however there's no doubt that the figures show that it's taking full advantage of the smartphone and tablet boom. Little wonder then that Intel wants to get in on the market. If ARM can make this much cash from just designing chips, one can only imagine how much Intel would rake in if it could take 15 to 20 per cent of ARM's business. µ

 

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