22nd Jul 2015 06:15
LONDON (Alliance News) - ARM Holdings PLC Wednesday said it expects to meet market expectations for dollar revenues in 2015 as it posted a rise in pretax profit for its first half.
The chip designer posted a pretax profit of GBP198.1 million for the half year to end-June, up from GBP146.0 million a year before, as revenue rose to GBP456.0 million from GBP373.7 million. Within this licensing revenue rose 7% to GBP95.8 million from GBP89.6 million, whilst royalty revenue rose 41% to GBP113.5 million from GBP80.3 million.
ARM proposed an interim dividend of 3.15 pence per share, up from 2.52 pence in the previous year.
The company said it enters its second half with a "robust pipeline of opportunities for licensing."
Industry data for the second quarter - which is the shipment period for ARM's third quarter royalties - indicates a "small sequential increase in industry revenues", ARM said. The company noted that royalty revenue can grow faster than the overall industry as royalty per chip in mobile devices increases and it sees share gains beyond mobile.
"Assuming macroeconomic uncertainty does not further impact consumer spending we expect overall group dollar revenues for full year 2015 to be in-line with current market expectations," ARM said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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