LONDON – ARM Holdings plc, the processor intellectual property, turned in yet another record quarter with Q1 sales revenue up 26 percent on a year before, compared with a semiconductor market that was up 13 percent.
While demand for smartphones and tablet computers where ARM (Cambridge, England) is prominent supplier of processor cores contributed it is also the case that a number of the firms licensing deals are increasingly broad with ARM-based chips going into many consumer electronics and industrial applications.
ARM's total revenue was £116 million (about $191 million) on which the company made a net profit of £21.5 million (about $35.5 million). However, this profit was reduced to £12.3 million (about $20.3 million) on unfavorable currency translation. This compares with 1Q10 when ARM made a net profit of £19.6 million on sales of £92.3 million. The sales revenue also beat analysts' expectations of about £111 million, according to Bloomberg report.
The company said that it expected normal seasonality through 2011, notwithstanding current uncertainty about the impact of the Japan earthquake of March 11. With about 1.85 billion chips responsible for ARM's revenue in Q1, the outlook puts ARM on course to be a $1 billion company shipping 8 billion units in 2011.
"Influential market leaders are licensing ARM technology to gain access to a growing ecosystem of operating systems, software applications, tools and service providers. Many of these companies have been ARM licensees for many years, and are now deploying ARM technology across a multitude of applications; in mobile, consumer electronics and embedded devices," said CEO Warren East in a statement.
ARM signed a total of 39 licenses in Q1. 32 were for applications that extend outside the mobile space. Seven of the licenses were for ARM’s advanced Mali graphics processors for use in smartphones, mobile computers and digital TVs. 26 of the licenses were for ARM’s Cortex processors, including the two subscription licenses. Ten licenses were with companies taking their first ARM license.
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