ARM Holdings posts growth in revenues and profits

ARM Holdings on Tuesday reported a 16 per cent rise in profit before tax for the fourth quarter, boosted by demand for the company's processor technology for smartphones and tablet devices.

ARM Holdings on Tuesday reported a 16 per cent rise in profit before tax for the fourth quarter, boosted by demand for the company's processor technology for smartphones and tablet devices.

Normalised pre-tax profits for the British semiconductor and software design firm came to £80m for the three months to December 2012, compared to £69m for the same period a year earlier.

Revenues came to the tune of £164.2m, up 19% year-on-year, beating the £151m forecast by analysts at Jefferies International.

Earnings per share for the period rose 10% to 4.08p, slighting under market expectations of 4.2p.

Full year profit before tax was up 20% to £276.5m, buoyed by a revenue increase of 17% to £576.9m. An 18% growth in earnings per share of 14.70p for the year was posted.

The FTSE 100 company said the key driver was sales of the group's processor technology for smartphones, mobile computers, medical devices and microcontrollers.

ARM saw 36 processor licences signed during the fourth quarter along with 2.5bn chips shipped.

Processor royalty also increased 21% year-on-year, buttressed by strong growth in the growth in the group's Cortex-A and Mali-based chips.

"ARM has seen good revenue and earnings growth throughout 2012. Customers are developing products to meet the needs of the post PC era and are driving demand for ARM's most advanced technology," Chief Executive Officer, Warren East, said.

"In [the fourth quarter] we again saw influential market-leaders demonstrating their commitment to ARM technology by licensing our latest products. Royalty revenue has also grown strongly during [the fourth quarter] underpinned by ARM's market share gains and an increased royalty percentage from Cortex-A class processors being deployed into smartphones and tablets.

"[This year] brings exciting opportunities and challenges as ARM enters competitive new markets where we are well positioned to succeed with leading technology, an innovative business model and a thriving ecosystem of partners."

RD

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023