Feeds

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

Chip designer sees market picking back up after Q4 drop

Build a business case: developing custom apps

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." ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
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?