Feeds

ARM doesn't lose self and leg

But Q2 profits slump 26%

The Power of One Infographic

Chip designer ARM Holdings has posted declining profits and revenues for the second quarter of 2009. But its outlook for the coming year is, yes, cautiously optimistic.

The Cambridge company - whose chip blueprints are used in Apple's iPhone - saw an 18 per cent year-on-year drop in revenues and a 26 per cent profit drop.

Despite the continued slumping profit, the fact that ARM didn't lose itself and a leg in Q2 seems to have provided the company with some comfort. Chief executive Warren East said in a statement that while ARM dollar revenue declined 14 per cent during the first half of the year, overall industry revenues declined 30 per cent.

ARM's second quarter spans from April to June, and it has a royalty revenue stream that generally lags the semiconductor sector by a quarter.

During Q2, the company made a net profit of £6.4m ($10.4m) compared to £12.2m ($20m) in the same quarter of 2008.

Sterling revenues of £64.8m during Q2 were down slightly from £65 the previous year due to the strengthening of the dollar. Total dollar revenues in Q2 2009 were $105.5m, down 18 per cent year-over-year.

ARM may see an upturn on the horizon, but it's hesitant to be overly bullish. "With recent signs of increasing industry activity we expect that ARM's trading performance will be on an improving trend in the second half of the year," East said in a statement.

The company adds: "Although the trajectory of the end-consumer demand remains unclear, prospects for the semiconductor industry in the second half are more positive." ARM said it expects its dollar revenue for the full year to at least be in line with current market expectations - "unless industry conditions in the second half are more challenging than is generally anticipated." ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.