Demand sees ARM lengthen profits

CHIP designer ARM Holdings easily beat first-quarter profit forecasts, helped by the strength of the dollar and buoyant demand for smartphones and tablets that use its processor techn- ology.

By The Newsroom

Published 24th Apr 2013, 01:01 BST

The Cambridge-based company reported a 44 per cent jump in adjusted pre-tax profit of £89.4m ($136.3m), beating analysts’ forecasts of £77.6m. Revenue rose 28 per cent to £170.3m.

ARM, which licenses its designs to chip-makers like Samsung and Qualcomm, collects most of its revenue in the dollar, which has strengthened by about seven per cent against the pound since the start of 2013.

ARM has also been growing faster than the semi-conductor sector thanks to its dominance in smartphones and tablets, like Samsung’s Galaxy S4 and Apple’s iPad, and wider use of its low-energy processors in microcontrollers.

“The growth in smartphones and tablets continues to benefit ARM,” chief executive Warren East said.

ARM employs around 60 staff at its base in Sheffield.