ARM Q2s up on licensing, stock twitches briefly
But no market upturn expected
Chip company ARM has reported record licensing revenues in its second quarter, resulting in income of £11.5 million ($18 million) on revenue of £43.2 million ($67.6 million). CFO Tim Score said the company expected to hit its targets of £180 million ($281 million) revenue and pre-tax profit of £65 million ($101.7 million) for the year, adding that the ARM 11 design was on-track, and getting good response from potential customers.
The rise in licensing income was 39 per cent, a total of 27 licences, while royalties at £6.5 million were only marginally higher than the previous year. ARM's royalty income comes on product sold, while licensing income you could view more as customer expectations, so the contrast is telling.
ARM's customers, notably the mobile phone companies, have been having a hard time of it, and the company said it wasn't getting ready for a market upturn any time soon. It is however soemwhat insulated from the market's problems by its licensing income. ARM's stock price rose briefly to 150p today, in what we presume passes for a burst of enthusiasm on the market's part, then eased off a tad. ®
Sponsored: Network DDoS protection