22nd Oct 2013 07:05
LONDON (Alliance News) - ARM Holdings PLC said Wednesday that it expects fourth quarter revenues in line with market expectations of around USD290 million as it posted rising pretax profits in its third quarter, boosted by strong revenue growth.
In the third quarter ARM showed revenues of GBP184.0 million, increased from GBP144.6 million in the previous year. Pretax profits for the quarter were GBP92.6 million, up from GBP68.1 million. Public Domain Licensing revenues grew 52% to USD106.2 million from USD69.7 million in the previous year.
This brings year-to-date pretax profits to GBP268.6 million up from GBP196.6 million, a rise of 37%.
ARM's semiconductor technologies is licensed for use in a wide variety of markets including wireless communications and mobile computing. The company signed 48 licenses with 24 companies in the quarter, of which 11 were brand new customers.
"As the products we use every day become more connected, and as new categories of smart devices are introduced, there are increasing opportunities for ARM's high-performance, low-power technology, which drive both license and long-term royalty revenues," said Chief Executive Officer Simon Segars in a statement. "With more customers choosing to deploy ARM technology in their products and ARM's royalty revenues outperforming the overall semiconductor industry, this has been another quarter that underpins ARM's long-term growth opportunity."
ARM Holdings says it enters its fourth quarter with a robust pipeline and strong order backlog, and as a result expects its revenues for the forth quarter will be in line with expectations.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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