RISC supplier Arm posts stronger-than-expected revenues

RISC supplier Arm posts stronger-than-expected revenues
By Semiconductor Business News
October 11, 2000 (2:23 p.m. EST)
URL: http://www.eetimes.com/story/OEG20001011S0006

CAMBRIDGE, England -- Demand for embedded RISC design cores pushed revenues higher than expected in the third quarter at Arm Holdings plc Ltd. here. The processor core supplier today reported revenues grew 68% to £26.4 million ($38.3 million) in the period, ended Sept. 30, compared to £15.7 million ($22.8 million) last year.

Arm's net income for the third quarter was £7.2 million ($10.4 million) vs. £2.8 million ($4.1 million) in the period last year.

"Revenue growth for the third quarter was stronger than expected, with higher royalty revenues accounting for most of the increase," said Jonathan Brooks, chief financial officer at Arm Holdings. "Our development systems business, which we regard as a leading indicator of design win activity, had another strong quarter, making up around 14% of revenues.

"Licensing activity continues with three new partners during the quarter and a further seven licenses sold to existing part ners," said the CFO. "As expected, operating margins declined to around 30% in the third quarter, a couple of points lower than in the first half of the year.

"The outlook for the rest of the year remains strong," Brooks added.