The world’s leader in semiconductor IP, ARM Holdings, has just released its quarterly financial results. Despite the decline in device shipments in the last quarter, ARM was still able to deliver numbers that will surely make investors smile.
Quarterly revenue for the microprocessor designer increased 13% from the previous year to $209.4 million, exceeding the market’s expectations. The surge of demand in microchip helped ARM improve its pre-tax profits by 22% to $100 million. “As many aspects of our lives become digital, we continue to see an increase in the demand for ARM’s smarter and lower power technology” the company stated.
As for the company’s hopes for the next quarter, ARM officials said that “most analysts expect the industry to recover in the second half.” Hence, “ARM expects that group dollar revenues for the full-year 2012 will be in line with current market expectations.”
It's not too much of an exaggeration to say that ARM-based processors can be found in most of the gadgets that you’re so fond of using. ARM’s processor designs are used in tablets, smartphones, portable gaming consoles, GPS devices, digital television, digital cameras, storage and more.
Different from mobile chip manufacturers like Intel, AMD, Qualcomm or Nvidia, ARM gets it revenues from licensing and royalty fees – and it’s proven to be quite a lucrative business. ARM said that, “royalty revenues continued to outperform the overall semiconductor industry as our customers launch their products into new markets and gain market share within existing markets.” ARM’s Cortex-M, which was just unveiled last March and dubbed as the world’s most energy-efficient microprocessor design, has already been licensed to 10 companies.
With Microsoft preparing to launch its Windows software on ARM-powered devices in June and the Cambridge-based company’s success in signing 22 processor licenses in the last quarter, the future does look bright for ARM.