15th Sep 2015 07:29
LONDON (Alliance News) - ARM Holdings PLC said it is trading in line with its expectations as it prepared to set out investment plans at its capital markets day in London on Tuesday.
The FTSE 100-listed chipmaker said its current trading and operating costs in the third quarter are broadly in line with the guidance it gave in its second quarter results in July.
ARM said its capital markets day, taking place Tuesday morning, will focus in its plans to invest in technologies for smart mobile devices, networking infrastructure and in complementary technologies for the Internet of Things, all of which it expects to increase its revenue and operating costs but which will become earnings accretive only in 2017.
The normalised operating costs for the additional investments will ramp up during 2016, ARM said, and are expected to grow by around GBP40.0 million for the 2017 full year, after which they will grow more modestly. It expects the investments to add around USD40.0 million in revenue in 2016, which will then rise to around USD200.0 million by 2020.
Shares in ARM were up 0.1% to 948.50 pence early Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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