ARM profit soars on smartphone sales
Chip designer ARM has enjoyed a bumper quarter as sales of smartphones and tablets such as the iPad helped drive the company’s earnings.
“Q3 was a good quarter for ARM,” said company CEO Warren East. “Not only are we benefiting from growth in applications where we are the established market leader, including in smartphones and mobile computers, but we are gaining share in markets like digital TV and micro-controllers.”
ARM saw pre-tax profits soar 60% to £38.8m for the quarter, up from £24.3m in the same period in 2009. Revenue was £100.4m, up from £75.2m.
ARM doesn’t actually make chips, but designs processors for other people, for which the company receives an up-front licensing fee and ongoing royalties.
As it eyes the future, ARM said it was investing in research and development, particularly as manufacturing partners look to expand into broader markets.
“Our partners are also starting to develop chips in new markets for ARM, such as servers and laptops, creating longer-term opportunities,” East said.