CHIP DESIGNER ARM has reported encouraging quarterly financials with revenue and profits increasing by 20 percent and 22 percent, respectively.
ARM's chip designs serve as the foundation for well over a billion chips that are shipped every year and with the growth in smartphone and tablet sales, the firm has been able to sell more of its higher-value chip designs. The firm announced that it had revenues of £144.6m in its third quarter, up 20 percent from the same quarter in 2011, while profits rose by 22 percent to £68.1m.
As ARM is finding itself in the vast majority of high profile consumer electronics devices, the firm was also keen to talk up its future in the automotive industry, a market that chip vendors see as ripe for future growth. In the past quarter however, ARM revealed that 2.2 billion ARM based chips were shipped and the firm signed 29 licenses, while gross margin hit an impressive 94.6 percent, which should keep investors happy.
ARM CEO Warren East said, "ARM has delivered another quarter of strong revenue and earnings growth. As we move into an ever more connected world of mobile computing, cloud-based networks and the Internet-of-Things, ARM is seeing increased demand for its high performance and low power technology. This demand is helping to drive ARM's licensing revenues and this quarter we saw market leaders license ARM's advanced processor technology for next generation super smartphones, tablets, and mobile and embedded computing applications."
While it is unlikely that ARM will be able to hit the $1bn revenue mark for 2012 in the final quarter, the company looks almost certain to break that barrier during 2013, and with operating margins of over 45 percent and earnings per share increasing steadily, the firm is not only popular with its customers but investors too. µ
Firm narrowly tops estimates with revenues of $42.4bn
Or so says the rumour mill ...
Hello, feeling lucky? Sorry. What's your emergency?
Arrives just days after firm slams Android security as 'lacking' compared to BB10