11th Feb 2015 07:37
LONDON (Alliance News) - ARM upped its dividend as it posted a rise in profit for 2014, boosted by strong licence revenue growth and improved royalty revenue growth in its fourth quarter, and said it expects to meet market expectations for dollar revenues in 2015.
ARM expects both its licence and royalty revenues to meet market expectations expectations in the current year. It expects its dollar revenues in its first quarter to be up 10% compared to the previous year, based on improving royalty revenue growth.
The chip designed proposed a final dividend of 4.5 pence per share, taking its total dividend for the year to 7.02 pence, up from a total dividend of 5.7 pence a year before.
ARM posted a pretax profit of GBP316.5 million for the year, compared to GBP162.6 million a year before, as revenues rose to GBP795.2 million from GBP714.6 million, and exceptional costs did not recur.
Stripping out exceptional costs, restructuring, amortisation, shares of joint ventures, impairments and other costs, ARM post a pretax profit of GBP411.3 million, up from GBP364.0 million and earnings per share of 24.1 pence compared to 20.6 pence.
Analysts had expected ARM to post a pretax profit of GBP405.7 million, with earnings per share of 23.5 pence.
"In Q4 and throughout 2014 ARM has seen strong licence revenue growth, driven by market-leading semiconductor companies increasing their commitment to use ARM technology, and a broadening range of new customers choosing ARM technology for the first time," said Chief Executive Officer Simon Segars in a statement.
"2015 will bring exciting opportunities and challenges as ARM invests in new products and technologies, and continues to establish itself in competitive new markets," Segars added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ARM.L