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26 April, 2006 - 17:19 By Staff Reporter

ARM posts major increased profits

ARM Holdings, the Cambridge superchip designer, has posted huge increases in revenue and pre-tax profit for the first quarter of 2006 and believes more global growth can be counted on.

Total revenues of £64.6m were 17 per cent up year-on-year and profit before tax 31 per cent ahead on £24.7m.

A total of £7m was returned to shareholders via a rolling share buyback programme and chief financial officer Tim Score said the strategy of returning cash to shareholders while investing in innovation would continue.

The revenue and profit surge was driven by a record order book and rising demand for wireless devices. ARM’s designs are used in electrical devices ranging from mobile phones to fridges and cars.

A record 572 million ARM Powered products shipped – up 47 per cent on the comparable period of 2005. Unit growth in non-mobile segments peaked at 68 per cent and continued to outpace growth in mobile (37 per cent).

CEO Warren East said ARM had seen encouraging activity in both licensing and royalties in the quarter.

“Interest in our new Cortex family of processors continues to grow with a further licence signed in Q1 and a number of licensing discussions in progress. Our first licence agreement for the most advanced (45nm) process technology has further strengthened our position as a leading provider of physical IP.

“We continued to extend our market penetration across the span of digital products with royalty units increasing 47 per cent compared to the same period last year. Q1’s result further underpins our confidence that ARM will achieve another strong performance in 2006 in line with current market expectations.”

Growth in India is principally driving ARM’s global headcount higher. Full time staff numbers rose to 1,371 from 1,324 from the end of December to the end of March and 20 of those new jobs were created at the company’s Bangalore design centre. ARM has 588 UK staff.

 

ARM Holdings, the Cambridge superchip designer, has posted huge increases in revenue and pre-tax profit for the first quarter of 2006 and believes more global growth can be counted on.

Total revenues of £64.6m were 17 per cent up year-on-year and profit before tax 31 per cent ahead on £24.7m.

A total of £7m was returned to shareholders via a rolling share buyback programme and chief financial officer Tim Score said the strategy of returning cash to shareholders while investing in innovation would continue.

The revenue and profit surge was driven by a record order book and rising demand for wireless devices. ARM’s designs are used in electrical devices ranging from mobile phones to fridges and cars.

A record 572 million ARM Powered® products shipped – up 47 per cent on the comparable period of 2005. Unit growth in non-mobile segments peaked at 68 per cent and continued to outpace growth in mobile (37 per cent).

CEO Warren East said ARM had seen encouraging activity in both licensing and royalties in the quarter.

“Interest in our new Cortex family of processors continues to grow with a further licence signed in Q1 and a number of licensing discussions in progress. Our first licence agreement for the most advanced (45nm) process technology has further strengthened our position as a leading provider of physical IP.

“We continued to extend our market penetration across the span of digital products with royalty units increasing 47 per cent compared to the same period last year. Q1’s result further underpins our confidence that ARM will achieve another strong performance in 2006 in line with current market expectations.”

Growth in India is principally driving ARM’s global headcount higher. Full time staff numbers rose to 1,371 from 1,324 from the end of December to the end of March and 20 of those new jobs were created at the company’s Bangalore design centre. ARM has 588 UK staff.

 

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