21st Oct 2015 06:27
LONDON (Alliance News) - ARM Holdings PLC on Wednesday said it expects to meet market expectations for 2015 dollar revenues, as it reported a rise in pretax profit for the third quarter.
In the quarter to end-September the computer chip designer reported a pretax profit of GBP102.9 million, up from GBP79.2 million a year before, as revenue rose GBP243.1 million, up from GBP195.5 million.
This brings ARM's pretax profit for the first nine months of the year to GBP301.0 million, up from GBP225.1 million a year before, on revenue of GBP699.1 million, up from GBP569.3 million.
Revenue was driven by a strong performance from technology royalties, which offset weaker growth in licensing, ARM said.
The company said it enters the final quarter of 2015 with "strong royalty momentum" and a "healthy licensing pipeline".
"Q3 has been another strong quarter for royalty revenue growth, driven by premium chip pricing and elevated royalty percentages from recently introduced ARMv8-A based chips. These new chips are now shipping in a wide range of devices including smartphones, enterprise equipment such as base stations and servers, and consumer electronics such as digital TVs," said ARM Chief Executive Officer Simon Segars in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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