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Strong ARM tactics yield results

by on21 April 2015


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Chip designer ARM reported a 36 per cent rise in first-quarter net profit amid strong demand for its technology.

The British company said that expects 2015 revenue to meet the expectations of the cocaine nose jobs of Wall Street.

ARM recorded net profit of $126.7 million for the three months to March 31 and revenue rose 22 percent.

Shares in ARM, which makes money by licensing its designs to chip makers, then collecting royalty revenue when the chips ship, were up by more than 5 per cent on the back of the news.

Processor-royalty revenue in dollar terms, a much-watched figure, rose 31 per cent on the year, the company said, adding that it has signed 30 processor licenses for a broad range of applications.

ARM CEO Simon Segars said: As the world becomes more digital and more connected, we continue to see an increase in the demand for ARM's smart and energy-efficient technology, which is driving both our licensing and royalty revenues.@

Processor-licensing revenue was down 2 per cent in the quarter, which was in line with expectations following strong growth previously. Chief Financial Officer Tim Score told journalists he expects it to grow in future quarters.

Aside from smartphones and tablets, ARM said it is also seeing demand for its processors to be used for servers and networking and for the "Internet of Things", a term used for the growing tendency for more items to be wirelessly connected.

ARM expects to benefit from the growth of the Internet of Things in areas such as health and in cars, Score said.

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