ARM Holdings reports 32 per cent rise in profits

ARM Holdings reports 32 per cent rise in profits

Chip designer says licence sales offset slower growth in royalties

ARM Holdings has posted a pre-tax profit of £364 million for the year to December 31, up 32 per cent from £276.5 million in the previous year.

The Cambridge-based chip designer said licence sales had offset slower growth in royalties from the use of its technology in smartphones made by Apple and Samsung, both of whom have posted declining sales in recent months.

Fourth quarter pre-tax profit came in at £95.5 million, up 19 per cent from £80 million over the same period the year before. Earnings per share rose by 40 per cent to 20.6 pence from 14.7 pence in 2012.

Simon Segars, CEO of ARM Holdings, said: "ARM's strategy is for our technology to continue to gain share in long-term growth markets, such as smartphones, tablets, enterprise equipment and embedded computing, and to increase the royalty percentage ARM receives from each device."

"We saw good progress over the fourth quarter as our latest technology was chosen by major companies in all our target markets, with further licences signed for our latest ARMv8-A processors, Mali graphics processors and physical IP technology. These design wins will help to drive ARM's future royalty revenues."

Segars also said ARM Holdings would continue to invest in both R&D and the business infrastructure to underpin its future growth.

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