20th Apr 2016 06:15
LONDON (Alliance News) - Chip designer ARM Holdings PLC Wednesday reiterated expectations for full-year dollar revenue in line with market expectations, as it reported a rise in pretax profit for its first quarter.
ARM saw pretax profit rise to GBP112.0 million in the first quarter of 2016, up from GBP103.4 million the year before, as revenue rose 14% to USD398.0 million from USD348.2 million. In sterling, revenue rose 22% to GBP276.4 million from GBP227.5 million.
Operating expenses rose 36% to GBP157.0 million from GBP115.4 million as ARM continued its drive to speed up its share gains in newer markets such as networking infrastructure and servers.
ARM said that, at the start of 2016, it has seen its current technology gaining share in target end markets and strong demand for its next generation of products from a wide range of companies.
Looking ahead, it warned that macroeconomic uncertainty remains, and could influence consumer and enterprise spending in 2016, "potentially impacting semiconductor sales and industry confidence".
"Devices are increasingly being improved by first becoming digital, and then smart, and then connected. This is generating huge amounts of data that needs to be protected, transmitted, managed and stored across the internet. These trends are creating fantastic opportunities for ARM and our Partners. They are driving our licensing, as more companies need access to smart processors to build intelligence into more products, and they will drive future royalty revenue as more consumers and enterprises choose to buy smarter and more connected products," said Chief Executive Officer Simon Segars in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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