ARM smiles its way to the bank as profits double

By Lee Kaelin on

Chip manufacturer ARM Holdings had a record third-quarter despite slowdowns reported in most parts of the industry, in large part due to the insatiable demand for chips fitted to smartphones and tablets.

The Cambridge-based, UK firm reported revenue of £120.2 million ($192.3m), up 20% from the same time last year. Pre-tax profits were £55.8 million ($89.12m), up 38.8% on last year's figures slightly exceeding analysts' predictions of revenue around £116.5 million ($186.07m) and £51.1 million ($81.61m) profits.

The figures were helped in large part by 43% growth in the processor division with licensing revenue of £37.8 million ($60.37m). The company signed 28 new chip licenses this quarter, 14 of which are entirely new agreements.

"In mobile, ARM is benefitting from an increase in the Cortex-A family chips used in smartphones and tablets," ARM's chief executive, Warren East, said in a statement. "In fact, Cortex-A shipments into mobile devices grew 300 percent year-on-year." East also commented that the company shipped 1 billion chips for use in smartphones this quarter, and a further 900 million used in embedded devices.

Microcontroller sales, used in everyday appliances and toys saw shipments rise by 80% year-on-year. ARM's market share for 2010 was just 10%.

“In the third quarter of 2011, we saw a continued high level of design activity with many new customers licensing ARM technology for the first time, driven by end market requirements for smarter, low-power chips. Demand for our technology has come from a broad range of applications, from sensors to computers,” ARM's CEO added.

ARM recently unveiled that its new super efficient Cortex A7 is to be paired with a Cortex A15, providing high performance and super efficiency in one package. The company also noted that the new Cortex A7 chip would make it easier to sell sub-$100 smartphones that ARM believes will help boost sales in developing regions.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.