Feeds

ARM brushes off dip in mobile revenues with sunny forecast for coming year

Chip designer sees market picking back up after Q4 drop

Security for virtualized datacentres

Chip design firm ARM has seen a dip in mobile sales that led to falling financial returns in the last financial quarter, a shift the company hopes will be temporary.

The British-based company on Wednesday reported first-quarter results which saw revenues up by 16 per cent in dollar terms (10 per cent in UK pounds after adjusting for exchange rates) over 2013. The same period last year ARM reported revenue growth of 26 per cent for the same period.

ARM blamed much of the slowing in growth on what it termed a "market correction" which included a dip in demand for high-end mobiles and increased interest in mid-range and low-cost models. ARM CEO Simon Segars said that the dip is in line with previous first-quarter slowdowns and the company still expects to meet its projected yearly numbers.

Executives noted additional factors in its falling revenue growth rates, including the late implementation of US tax credits and a corrected royalties report from a customer.

On the quarter, the company reported $305.2m in revenue, up from $263.9m a year ago. Operating expenses rose to $97.1m from $89.4m. Earnings per share were 5.60p, compared to 5.31 last year.

ARM reported a 38 per cent increase in processor licensing revenues and a 30 per cent jump in physical IP licensing. The company is hoping that the licensing revenue will also translate to higher royalty returns. Processor royalty revenues were up 4 per cent on the quarter and total revenues increased by 3 per cent.

One of the reasons for the company's continued optimism is the expansion of ARM devices into the enterprise networking and server spaces. Segars noted that with the release of the 64-bit v8 processor and new initiatives such as the SBSA server architecture, the company is hoping to broaden and diversify its customer base in the coming year.

"ARM v8 is now the compute platform of choice for future chip designs," Segars said, "not just in mobile computing, but increasingly in consumer electronics, the datacenter and network infrastructure." ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.