10th Feb 2016 07:17
LONDON (Alliance News) - Chip-designer ARM Holdings PLC Wednesday reported a rise in pretax profit in 2015, as it saw a strong performance in its fourth quarter with revenue up 19%.
ARM reported a pretax profit of GBP414.8 million for 2015, up from GBP316.5 million in 2014, as revenue rose to GBP968.3 million from GBP795.2 million, more than offsetting increases in research and development costs. On a dollar basis, as ARM generates a majority of its revenue in dollars, revenue rose to USD1.49 billion from USD1.29 billion.
The results included a pretax profit of GBP113.7 million for its fourth quarter, up from GBP91.4 million a year before, as revenue rose 19% to GBP269.1 million from GBP225.9 million.
Revenue growth primarily came from the company's royalty revenues, which helped offset a weaker performance in its licensing revenue.
Looking ahead, ARM said it enters 2016 with a "robust opportunity pipeline", helped by the introduction of new technologies and its expanding market opportunities.
ARM cautioned that whilst economic uncertainty "may influence consumer and enterprise spending, potentially impacting semiconductor revenues and industry confidence", based on current conditions in the semiconductor market, it expects 2016 dollar revenues "broadly in line" with market expectations.
ARM proposed a final dividend of 5.63 pence for the year, which brings its total dividend to 8.78 pence, up from 7.02 pence a year before.
"Demand for our technology is increasing, and during the quarter we signed multiple licences for the next generation of high-performance and secure ARM processors. Our increased investments in both 2015 and 2016 will help us meet demand by extending the capabilities of our technology and the ecosystem, and will support long-term growth and returns for shareholders," said Chief Executive Officer Simon Segars in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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