Feeds

ARM: We've signed 41 new deals and we are IN to the Internet Of Stuff

Profits up but royalties down in the Silicon Fen

Providing a secure and efficient Helpdesk

ARM Holdings has dodged the impact of slowing device sales with 41 customers signing new deals to license its chip technology.

The company Tuesday announced a nine-per-cent jump in second-quarter profit to £68m on revenue that climbed seventeen per cent to £187.1m. Earnings per share increased 11 per cent to £3.91.

But royalties for ARM chipsets from existing customers fell by nine percent for the period to June 30, to £80.3m under IFRS. ARM blamed the fall on “seasonal trends and inventory management in parts of the electronics supply chain,” saying the drop had been expected.

Away from the financial wizardry at ARM's Cambridge base, industry analysts have been charting a progressive slowdown in sales of smart phones and tablets.

The market for both is changing, as tablets reach saturation and customers shop judiciously and selectively for a second tablet for them or the family.

On phones, the growth is in low-priced handsets, mostly sporting Google’s Android operating system.

Device makers are investigating new form factors in all cases, around different screen sizes, as phones adopt more tablet-like sizes and features.

ARM has 90 per cent of smart phones and 31 per cent of devices, licensing its designs to Qualcomm, Nvidia, Texas Instruments and Broadcom among others.

Optimistic ARM chief Simon Segars said the 41 deals in the second quarter were driven by demand for ARM technology in a range of areas – devices, embedded, consumer electronics and, yes, Internet of Things.

Total technology licensing for ARM was up 36 per cent to £89.6m for the quarter.

“Our continued strong licensing performance reflects the intent of existing and new customers to base more of their future products on ARM technology,” Segars said in a statement. “This bodes well for growth in ARM’s medium and long term royalty revenues.” ®

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
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.