ARM’s first quarter revenue rose 28 per cent to £170.3 million from £132.5 million a year earlier. Analysts had expected a 20 per cent rise in revenue to £158.8 million. The company made an adjusted pretax profit rose 44 per cent to £89.4 million from £61.9 million a year earlier. Analysts were expecting a 25 per cent jump to £77.6 million.
Chief Executive Warren East said the company has "delivered another quarter of strong revenue and earnings growth, driven by robust licensing and record royalty revenue." ARMs royalty revenues again outpaced the wider semiconductor industry, riven by market share gains in key end markets including digital TVs and microcontrollers, he said. ARM also continues to benefit from the growth in smartphones and tablets.
This year ARM said it had made an encouraging start with more leading companies choosing to sign up to ARM technology. More than 22 processor licenses were signed in the first quarter ended March 31 from smartphones, mobile computing, digital television and other technology.
In the quarter there were more than 2.6 billion ARM-based chips were shipped, up 35 per cent from a year earlier.