31 Jan 2012

ARM Posts Record Results

ARM Holdings, the Cambridge, UK based chip designer, has posted forecast-beating fourth quarter figures. These show the company’s profit jumping to £69m (GBP69m) against expectations of a £55m fourth-quarter rise.

This growth is one of the success stories of the semiconductor industry. The company which grew out of a relatively small home computer company saw a revolutionary area in which to use their expertise and managed over the last 25 years to grow the company into a world beating organisation whose IP is used in very many of today’s smartphones and many other devices.

The recorded growth comes from ARM consolidating their position in the industry despite a launch by Intel earlier in the year. ARM saw 25 processor licenses signed, including the first lead licenses for processors based on the new ARMv8-A architecture as well as 9 Cortex™-A and 8 Cortex-M family processor licenses signed. Many of the advanced processor licenses have been signed with companies that are developing more intelligent consumer electronics technology - digital TVs, mobile computers and smartphones.

As a result 1.2 billion chips shipped into mobile phones and mobile computers: this is 10% up year-on-year, and 1.0 billion chips shipped into consumer and embedded digital devices: this is 40% up year-on-year.

Warren East, ARM CEO said: "In Q4 and throughout 2011 ARM has seen strong licensing growth, driven by market-leading semiconductor companies increasing their commitment to ARM technology, and more new customers choosing ARM technology for the first time. We have also seen our royalty revenue continue to grow faster than industry revenues as the ARM Partnership gains share in our target markets.”

He added: “2012 will bring exciting opportunities and challenges as ARM enters competitive new markets where we are well positioned to succeed with leading technology, an innovative business model and a thriving ecosystem of Partners. As our customers are designing more ARM technology into their widening product portfolios, ARM is investing in the development of new products. These products will drive further long-term growth in our revenues, profits and cash."

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