LONDON Processor IP licensor ARM Holdings plc turned in record financial results for its first quarter of 2010 with revenues at $143.3 million up 19 percent on the revenue in the first quarter of 2009. The quarter saw ARM achieve its highest ever unit shipments leading to record royalty revenues, profits and net cash generation.
The company attributed this to broadening acceptance of ARM architecture and continued growth in the smartphone market as mobile computers run by ARM-based processors beginning to come to market.
Nonetheless the company expressed caution about the second half of the calendar year saying there was a lack of certainty as to the impact of the broader macroeconomic environment on end-consumer demand.
The company claimed that it had also enjoyed success in broadening its scope with 13 processor licenses signed for such applications as intelligent sensors, networking, smart energy meters and solid-state drives.
The company also said it had signed four processor licenses for mobile phone and computing applications including a major semiconductor company becoming the second lead-licensee for Eagle, the next-generation of Cortex-A class processor in development at ARM.
"Leading semiconductor and OEM companies are increasingly adopting ARM technology, creating healthy demand for our latest products. This continuing demand validates ARM's commitment to R&D investment as we develop the technology that meets our customers' need for smarter, lower-power chips in a broadening range of end markets," said Warren East, chief executive officer, in a statement.
"Shipments of ARM-based chips reported in Q1 increased more than 50 percent compared with a year ago, driven by strong growth from smarter mobile devices, digital TVs, disk drives and microcontrollers, and leading to record royalty revenues. Combined with on-going financial discipline,this has given rise to year-on-year earnings growth of 49 percent and record levels of net cash generation," East concluded.