21st Apr 2015 06:21
LONDON (Alliance News) - ARM Holdings PLC Tuesday reiterated it expecte to "at least" meet current market expectations for dollar revenue in 2015, as it posted a rise in pretax profit in the first quarter of the year driven by strong growth in mobile chip demand.
The chip designer posted a pretax profit of GBP103.4 million, up from GBP78.0 million in the first quarter of 2014, as revenue grew to GBP227.5 million from GBP186.7 million.
Within this, dollar licence revenue was up 3%. The company continues to expect licence revenue growth of 5 to 10% a year in the medium term, but its order backlog at the end of the quarter was down around 7% sequentially. Based on its medium term outlook for licence revenue growth, it expects quarterly sequential movements of its order backlog to be lumpy.
Dollar royalty revenue was up 28%, as it saw an increase in the number of chips going into mobile devices, and a strong comparator due to inventory correction in the first half of 2014.
The company said that industry data for the first quarter, being the shipment period for its second quarter royalties, indicates a decrease in industry-wide revenues that is broadly consistent with normal seasonality. It expects its second quarter dollar revenue to be in line with current market expectations.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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