ARM revenues power ahead in second quarter

27th Jul 2016 07:28

(ShareCast News) - Chipmaker ARM Holdings posted its second-quarter numbers on Wednesday, with group revenues in USD growing 9% year-on-year to $387.6m and 17% in GBP to £267.6m in the three months to 30 June.The FTSE 100 firm said processor licensing revenues were up 14% in USD and 24% in GBP, with processor royalty revenues growing 11% and 19%.Its normalised operating expenses were at the lower end of its guided range, at £130.7m, with normalised profit before tax ahead by 5% to £130.1m and earnings per share up 18% at 8.6p.The company declared an interim dividend of 3.78p, up 20%.During the period, ARM acquired embedded computer firm Apical, and announced a strategic partnership with the Chinese private equity firm HOPU."Our royalty revenue growth continues to outperform the wider semiconductor industry, driven by market share gains and the increasing adoption of ARM's latest technologies," said CEO Simon Segars."With more end-users selecting ARM technology for products ranging from sensors to satellites to supercomputers, we expect this outperformance will continue."Segars said ARM is continuing to invest in products that will support its partners' plans as they develop next-generation technologies such as 5G networks, autonomous vehicles and the Internet of Things."Our recent acquisition of Apical enhances our expertise in visual computing, a rapidly-advancing field which is enabling smart buildings, augmented reality, self-driving cars and advanced robotics."As new technologies are created and new markets emerge, ARM will continue to evolve its products and business models to capture the opportunities ahead," Segars explained.The period covered in the update was prior to the recent announcement from Japan's Softbank, that it is seeking to acquire ARM in a deal worth £24.3bn.