Wide-reaching ARM beats analyst forecasts
ARM has beaten market expectations in its second quarter results having shipped two billion chips despite an industry wide fall of four per cent.
The company’s share price was up by over 41 pence to 526.5 pence a share as pretax profit for the period hit £66.5m, up 23 per cent from last year’s £54.2m, while revenues increased by 15 per cent from £117.8m in Q2 2011 to £135.5m this year.
Processor royalties grew by 14 per cent for the semiconductor firm, again in defiance of the seven per cent decline for the rest of the industry.
The company, whose chips are used in the vast majority of the world’s smartphones, said the strong performance was the result of new products from a range of industry partners, which is partly why ARM performed so strongly while Apple – who announced resutls yesterday – struggled.
ARM did say that while Q3 would see a small revenue increase, Q4 figures would be harder to gauge due to a potential lack of confidence from consumers. However, it enters the second half of 2012 with a record order backlog and a robust opportunity pipeline.