ARM outmuscles market with record dealflow
ARM, the Cambridge UK superchip designer, has cashed in big-time on record demand for its technology.
CEO Warren East backed up another thumping set of results for the second quarter and first half of 2012 by revealing a record order backlog and a pipeline bursting with new products and opportunities.ARM Q2 revenues to June 30 were 15 per cent up on last year at £135.5 million. Pre-tax profit was 32 per cent ahead to £66.5m. First-half revenues were 15 per cent up on 2011 at £268m with pre-tax profits of £128.5m – a 22 per cent increase on the first half of last year.
East said: “ARM's royalty revenues continued to outperform the overall semiconductor industry as our customers gained market share within existing markets and launched products which are taking ARM technology into new markets.
“This quarter we have seen multiple market leaders announce exciting new products including computers and servers from Dell and Microsoft, and embedded applications from Freescale and Toshiba.
“In addition, ARM and TSMC announced a partnership to optimise next generation ARM processors and physical IP and TSMC's FinFET process technology.
“All of these new products are the result of technology engagements over many years, and ARM's long-term commitment to invest in the development of innovative technology.”
East said ARM entered the second half of 2012 with a record order backlog and “a robust opportunity pipeline.”
The company said data pointed to a small sequential increase in Q3 royalties but that Q4 royalties were harder to predict given macroeconomic uncertainty.
While some analysts had become less confident in the semiconductor industry outlook in the second half, ARM said it was building on a strong H1 performance so expected overall dollar revenues for the full year to be in line with market expectations.
