SAN JOSE, Calif. -- ARM Holdings PLC reported a record quarter based on closing 48 new licensing deals, 11 with new customers. The deals drove revenue up 26 percent year-on-year to $286.7 million and pre-tax profits up to about $150 million.
Licensing growth "was strong and diverse," said Tom Lantzsch, executive vice president of strategy at ARM, in an interview with EE Times. Given the third quarter spike, ARM expects sales in the coming quarter to be about flat, he said.
Eighteen of the 48 new licenses were for microcontroller-class Cortex-M products, a fact that kept ARM’s average royalty per chip flat year-on-year at 4.9 cents. However, the high-end Cortex-A was the second biggest area, with 15 new licenses, including one to Mediatek for the 64-bit ARMv8 processor. ARM also signed five new licenses for its Mali graphics core, one from a new customer.
Among ARM's new customers, memory vendor Spansion announced plans for a range of ARM-based chips for automotive, industrial, and embedded consumer applications earlier this year. The company is also seeing growth in SoCs for wired systems, a relatively new area for ARM.
"Even traditional analog companies are adding intelligence to their devices, while others are entering new market spaces and some smaller vertically integrated companies" are adopting ARM cores for markets in the Internet of Things, said Lantzsch.
Closing 48 licensing deals drives a record quarter for ARM.